ALJ/AYK/hkr Date of Issuance 8/25/2009

Decision 09-08-028 August 20, 2009

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Southern California Edison Company (U338-E) To Establish Marginal Costs, Allocate Revenues, And Design Rates.	Application 08-03-002 (Filed March 4, 2008)
In the Matter of the Application of Southern California Edison Company (U338-E) for Authority to Make Various Electric Rate Design Changes.	Application 07-12-020 (Filed December 21, 2007)

(See Appendix A for a List of Appearances.)

DECISION ADOPTING SETTLEMENTS
ON MARGINAL COST, REVENUE ALLOCATION, AND RATE DESIGN

TABLE OF CONTENTS

Title Page

DECISION ADOPTING SETTLEMENTS ON MARGINAL COST,
REVENUE ALLOCATION, AND RATE DESIGN 1

1. Summary 22

2. Procedural History 33

3. Standard of Review 66

4. Settlement Agreements 77

4.1. Revenue Allocation Settlement Agreement 77

4.2. Residential and Small Commercial Rate Design
Settlement Agreement 1414

4.3. Medium and Large Power Rate Group Rate Design
Settlement Agreement 2222

4.4. Agriculture and Pumping Rate Group Rate Design
Settlement Agreement 2525

4.5. Street Light Rate Group Settlement Agreement 2828

4.6. Commercial Submetering Settlement Agreement 2929

5. Other Issues 3131

5.1. Revision of SCE's Agricultural Criteria 3131

5.1.1. SCE's Agricultural Criteria 3131

5.1.2. Citrus Packers' Position 3232

5.1.3. SCE's Response 3535

5.1.4. Discussion 3737

5.2. Assigned Commissioner's Ruling on Dynamic Pricing 4141

5.2.1. Parties' Positions 4141

5.2.2. Discussion 4545

6. Transphase's Motion to Disqualify President Peevey 5050

7. Conclusion 5252

8. Comments on Proposed Decision 5454

9. Assignment of Proceeding 5454

Findings of Fact 5454

Conclusions of Law 5757

ORDER 5959

ATTACHMENTS:

Attachment A - List of Appearances

Attachment B - Revenue Allocation Settlement Agreement

TABLE OF CONTENTS (cont.)

Title Page

Attachment C - Residential and Small Commercial Rate Design
Settlement Agreement

Attachment D - Medium and Large Power Rate Group Rate Design
Settlement Agreement

Attachment E - Agriculture and Pumping Rate Group Rate Design
Settlement Agreement

Attachment F - Street Light Rate Group Settlement Agreement

Attachment G - Commercial Submetering Settlement Agreement

Attachment H - Dynamic Pricing Rate Design Guidance

Attachment I - June 2009 Update of Revenue Requirements and Proposed, Illustrative Rates

DECISION ADOPTING SETTLEMENTS
ON MARGINAL COST, REVENUE ALLOCATION, AND RATE DESIGN

1. Summary

This decision addresses the applications of Southern California Edison Company (SCE) to (1) establish marginal costs, allocate revenues, and design rates for service provided to its customers for service in 2009 - 2012 and (2) establish a Conservation Incentive Adjustment and modify an existing
Low Emission Vehicle rate schedule. The following settlement agreements are approved without further modification:

1. Revenue Allocation Settlement Agreement,

2. Street Light Rate Group Settlement Agreement, and

3. Commercial Submetering Settlement Agreement.

The Residential and Small Commercial Rate Design Settlement Agreement, the Medium and Large Power Rate Group Rate Design Settlement Agreement and the Agriculture and Pumping Rate Group Rate Design Settlement Agreement are modified to ensure that the provisions concerning participation in more than one demand response program are consistent with the policies ultimately adopted in the Commission's demand response proceeding (Application (A.) 08-06-001 et al.). These settlement agreements, as modified, are approved.

Unless otherwise provided in this decision, the revised rates will become effective October 1, 2009 and will allow SCE to collect the revenue requirement determined in Phase 1 of its 2009 General Rate Case.

This decision also finds that SCE should file an application proposing additional dynamic pricing rates for its customers by September 1, 2010. The application shall propose default and/or mandatory time of use and time of use/critical peak pricing rates as specified in this decision. These rates shall be proposed to be effective on January 1, 2012.

Finally, this decision denies a request by Citrus Packers to revise SCE's agricultural criteria and a motion filed by Transphase Company to disqualify President Michael R. Peevey from serving as the assigned Commissioner in the proceeding or from voting on the decision. SCE's motion to update the settlement agreements to reflect updated revenue requirements and proposed rates is granted. This proceeding is closed.