1. Summary

This decision addresses compliance, verification and reasonableness issues related to Southern California Edison Company's (SCE's) Energy Resource Recovery Account for the Record Period January 1 through December 31, 2008. Among other things, the decision:

· Determines that all dispatch-related activities SCE performed during the Record Period complied with Commission orders and SCE's procurement plan.

· Determines that the September 27, 2008 Palo Verde Nuclear Generating Station Unit 3 forced outage was not reasonable and ratepayers should not pay for the associated replacement power cost, estimated to be $615,000.

· Determines that, with the exception of the September 27, 2008 Palo Verde Nuclear Generating Station Unit 1 forced outage, SCE's utility retained generation operations were reasonable.

· Determines that all aspects of SCE's contract administration during the Record Period were reasonable.

· Authorizes rate recovery of $26,051,000 contained in the New System Generation Memorandum Account, $3,910,000 contained in the Project Development Division Memorandum Account, and $347,000 in associated franchise fees and uncollectibles.

· Defers consideration of the reasonableness of $5.1 million in Market Redesign and Technology Upgrade expenses to SCE's Energy Resource Recovery Account Review application for the 2009 Record Period.

· Denies the Division of Ratepayer Advocates request for a consolidated proceeding with Pacific Gas and Electric Company and San Diego Gas and Electric Company to address Market Redesign and Technology Upgrade costs.

· Determines that SCE should request disposition of the Department of Energy Litigation Memorandum Account after all costs and proceeds are known.

· Denies the Division of Ratepayer Advocates request for a consolidated proceeding with Pacific Gas and Electric Company and San Diego Gas and Electric Company for non-Energy Resource Recovery Account reasonableness review.