Conclusions of Law

1. The Commission has the authority to modify D.05-12-040.

2. It is reasonable to reduce cost recovery limit for the steam generator replacement program by $9.2 million, as estimated and adopted in 2004 dollars. D.05-12-040 is therefore reasonably modified so that SCE is authorized a revised total of $670.8 million (2004 dollars) for the SONGS steam generator replacement program.

3. This proceeding should be closed.

ORDER

Therefore, IT IS ORDERED that:

1. The cost recovery limit for Southern California Edison Company's steam generator replacement program is reduced by $9.2 million, as estimated and adopted in 2004 dollars. Decision (D.) 05-12-040 is modified so that Southern California Edison Company is authorized a revised total of $670.8 million (2004 dollars) for the San Onofre Nuclear Generating Station Unit Nos. 2 & 3 steam generator replacement program. No other term or condition of D.05-12-040 is changed.

2. Application 04-02-026 is closed.

This order is effective today.

Dated May 26, 2011, at San Francisco, California.

MICHAEL R. PEEVEY

President

TIMOTHY ALAN SIMON

MICHEL PETER FLORIO

CATHERINE J.K. SANDOVAL

MARK J. FERRON

Commissioners