5. SCE's Updated 2011 Consolidated Revenue Requirement

SCE's total system 2011 consolidated revenue requirement is estimated to increase by $403.8 million. This is the sum of: (1) SCE's requested total system 2011 ERRA proceeding revenue requirement increase of $276.9 million; (2) an estimated $133.0 million increase associated with SCE's 2009 GRC base revenue requirement; (3) an estimated $237.6 million increase resulting from various other revenue requirement changes; and (4) an estimated $243.7 million decrease in DWR's 2011 power charge and bond charge revenue requirements. Although the overall consolidated revenue requirement is expected to increase by approximately $403.8 million, after taking into account the estimated increase in kilowatt-hour (kWh) sales in 2011, total estimated 2011 rate levels will increase by $183.4 million. The estimates SCE has included in this proceeding will be replaced by actual authorized amounts in the compliance advice letter to be submitted upon a final Commission decision in this proceeding.

During SCE's November 19 meeting with DRA, DRA indicated that it did not oppose SCE's request to implement its consolidated revenue requirement in this year's ERRA forecast proceeding. Going forward, however, DRA requested SCE to implement its consolidated revenue requirement via an advice letter filing, instead of its ERRA forecast application. SCE agreed to DRA's request, and will therefore no longer be requesting the Commission to implement its consolidated revenue requirement in future ERRA forecast applications.