8. Scoping Memo

On March 12, 2007, the Chief Administrative law Judge issued a ruling preliminarily confirming the applicant's proposed categorization of ratesetting and that no hearing is necessary. Pursuant to Rule 7.3 of the Commission's Rules of Practice and Procedure, no scoping memo issued. Following the PHC on March 27, 2007, it was determined that evidentiary hearings were necessary and they were scheduled for May 30-31, 2007.

The preliminary determination that no hearing is necessary is changed to hearing is necessary.

Findings of Fact

1. We find that SCE's conduct in respect to the fast-track RFO was reasonable.

2. We find SCE's choice of the Blythe PPA from the other offers in the fast-track RFO is reasonable.

3. The Blythe PPA is needed to preserve system reliability when the facility is scheduled to come on-line in August 2010.

4. There is no certainty as to whether the need for the power from Blythe will be significantly greater in 2011 than in August 2010 when Blythe is scheduled to come on-line, so it is reasonable to approve the contract for 2010 delivery.

5. The Blythe facility is an existing operating CCGT generating unit that will be newly interconnected to the CAISO control area under the terms of the contract and is therefore "deemed compliant" with the EPS rules.

6. Consistent with Federal Energy Regulatory Commission policy, the 67-mile radial transmission line or "gen-tie" needed to connect the generation project to the integrated transmission network within SP 15 will be fully funded by the generation developer itself, so that construction of this line will impact neither transmission owner costs nor general transmission rates charged to recover such costs.

7. The most recent CAISO Reliability Study indicates that the Blythe facility can reliably interconnect with the grid once the developer performs several interconnection upgrades identified in the study.

8. The most recent CAISO Deliverability Study indicates that the project is 96% deliverable under current system conditions.

9. SCE's 2006 LTPP indicated that SCE complied with the EAP loading order in assessing what resources were needed to meet the needs of its service territory.

10. SCE utilized a LCBF methodology in evaluating the Blythe bid against other bids in the fast-track RFO.

11. We find that the Blythe payments should be recoverable in full through rates, subject only to SCE's prudent administration of the contract.

12. We find that the costs and benefits of the Blythe PPA are to be allocated to all benefitting customers in accordance with D.06-07-029.

Conclusions of Law

1. The 10-year Blythe PPA for up to 490 MW of capacity and energy deliverable from August 1, 2010 through July 31, 2020 is reasonable and should be approved.

2. The costs and benefits of the Blythe PPA should be shared with all benefitting customers in SCE's service territory in accordance with the cost allocation methodology adopted in D.06-07-029.

ORDER

IT IS ORDERED that:

1. We authorize Southern California Edison Company (SCE) to enter into a 10-year power purchase agreement (PPA) with Blythe Energy, LLC (Blythe) for up to 490 megawatts of capacity and energy deliverable from August 1, 2010 through July 31, 2020.

2. We authorize SCE to allocate the costs and benefits of the Blythe PPA with all benefitting customers in accordance with the cost allocation methodology adopted in Decision 06-07-029.

3. Application 07-02-026 is closed.

This order is effective today.

Dated May 29, 2008, at San Francisco, California.

MICHAEL R. PEEVEY

President

DIAN M. GRUENEICH

JOHN A. BOHN

RACHELLE B. CHONG

TIMOTHY ALAN SIMON

Commissioners

************** PARTIES ************** Marc D. Joseph Attorney At Law ADAMS, BROADWELL, JOSEPH & CARDOZO 601 GATEWAY BLVD., STE. 1000 SOUTH SAN FRANCISCO CA 94080 (650) 589-1660 mdjoseph@adamsbroadwell.com For: California Unions for Reliable Energy (CURE) Nora Sheriff Attorney At Law ALCANTAR & KAHL, LLP 120 MONTGOMERY STREET, SUITE 2200 SAN FRANCISCO CA 94104 (415) 421-4143 nes@a-klaw.com For: Energy Producers & Users Coalition Rod Aoki Attorney At Law ALCANTAR & KAHL, LLP 120 MONTGOMERY STREET, SUITE 2200 SAN FRANCISCO CA 94104 (415) 421-4143 rsa@a-klaw.com For: Cogeneration Association of California Grant A. Rosenblum, Senior Counsel CALIFORNIA INDEPENDENT SYSTEM OPERATOR 151 BLUE RAVINE ROAD FOLSOM CA 95630 (916) 351-4400 grosenblum@caiso.com For: California Independent System Operator Lynne M. Brown CALIFORNIANS FOR RENEWABLE ENERGY INC. 24 HARBOR ROAD SAN FRANCISCO CA 94124 (415) 285-4628 l_brown246@hotmail.com For: Californians for Renewable Energy, Inc. (CARE) Joe Como Legal Division, RM. 5033 505 VAN NESS AVE San Francisco CA 94102 3298 (415) 703-2381 joc@cpuc.ca.gov For: DRA	Janine L. Scancarelli Attorney At Law FOLGER, LEVIN & KAHN, LLP 275 BATTERY STREET, 23RD FLOOR SAN FRANCISCO CA 94111 (415) 986-2800 jscancarelli@flk.com For: California Independent System Operator Cathy A. Karlstad FRANK COOLEY, LAURA GENAO SOUTHERN CALIFORNIA EDISON COMPANY 2244 WALNUT GROVE AVE. ROSEMEAD CA 91770 (626) 302-1096 Cathy.Karlstad@sce.com For: SOUTHERN CALIFORNIA EDISON COMPANY Mike Florio Attorney At Law THE UTILITY REFORM NETWORK 711 VAN NESS AVENUE, SUITE 350 SAN FRANCISCO CA 94102 (415) 929-8876 mflorio@turn.org For: TURN ********** STATE EMPLOYEE *********** Carol A. Brown Administrative Law Judge Division RM. 5103 505 VAN NESS AVE San Francisco CA 94102 3298 (415) 703-2971 cab@cpuc.ca.gov Matthew Deal Executive Division RM. 5215 505 VAN NESS AVE San Francisco CA 94102 3298 (415) 703-2576 mjd@cpuc.ca.gov Sepideh Khosrowjah Division of Ratepayer Advocates 505 VAN NESS AVE, RM. 4101 San Francisco CA 94102 3298 (415) 703-1190 skh@cpuc.ca.gov For: DRA
Peter Skala Energy Division AREA 4-A 505 VAN NESS AVE San Francisco CA 94102 3298 (415) 703-5370 ska@cpuc.ca.gov ********* INFORMATION ONLY ********** Karen Terranova ALCANTAR & KAHL, LLP 120 MONTGOMERY STREET, STE 2200 SAN FRANCISCO CA 94104 (415) 421-4143 filings@a-klaw.com Scott Blaising Attorney At Law BRAUN & BLAISING, P.C. 915 L STREET, STE. 1270 SACRAMENTO CA 95814 (916) 682-9702 blaising@braunlegal.com CALIFORNIA ISO LEGAL AND REGULATORY DEPARTMENT 151 BLUE RAVINE ROAD FOLSOM CA 95630 e-recipient@caiso.com Michael E. Boyd CALIFORNIANS FOR RENEWABLE ENERGY, INC. 5439 SOQUEL DRIVE SOQUEL CA 95073 (408) 891-9677 michaelboyd@sbcglobal.net Mark Turner Director COMPETITIVE POWER VENTURES, INC. 55 2ND STREET, SUITE 525 SAN FRANCISCO CA 94105 (415) 293-1463 mturner@cpv.com Don Liddell Attorney At Law DOUGLASS & LIDDELL 2928 2ND AVENUE SAN DIEGO CA 92103 (619) 993-9096 LIDDELL@ENERGYATTORNEY.COM For: DOUGLASS & LIDDELL	Diane I. Fellman Attorney At Law FPL ENERGY, LLC 234 VAN NESS AVENUE SAN FRANCISCO CA 94102 (415) 703-6000 diane_fellman@fpl.com Martin Homec Attorney At Law LAW OFFICE OF MARTIN HOMEC PO BOX 4471 DAVIS CA 95617 (530) 867-1850 martinhomec@gmail.com David Marcus PO BOX 1287 BERKELEY CA 94701 (510) 528-0728 dmarcus2@sbcglobal.net MRW & ASSOCIATES, INC. 1814 FRANKLIN STREET, SUITE 720 OAKLAND CA 94612 (510) 834-1999 mrw@mrwassoc.com Ed Lucha Case Coordinator PACIFIC GAS AND ELECTRIC COMPANY PO BOX 770000, MAIL CODE B9A SAN FRANCISCO CA 94177 (415) 973-3872 ELL5@pge.com Mark W. Zimmermann PACIFIC GAS AND ELECTRIC COMPANY PO BOX 770000, MAIL CODE B9A SAN FRANCISCO CA 94177 (415) 973-6515 MWZ1@pge.com Stephanie La Shawn PACIFIC GAS AND ELECTRIC COMPANY PO BOX 770000, MAIL CODE B9A SAN FRANCISCO CA 94177 (415) 973-8063 S1L7@pge.com
Valerie J. Winn PACIFIC GAS AND ELECTRIC COMPANY PO BOX 770000, B9A SAN FRANCISCO CA 94177-0001 (415) 973-3839 vjw3@pge.com James Ross RCS, INC. 500 CHESTERFIELD CENTER, SUITE 320 CHESTERFIELD MO 63017 (636) 530-9544 jimross@r-c-s-inc.com Phillip Miller SCD ENERGY SOLUTIONS 436 NOVA ALBION WAY SAN RAFAEL CA 94903 (415) 479-1710 philm@scdenergy.com Daniel A. King SEMPRA ENERGY 101 ASH STREET, HQ 12 SAN DIEGO CA 92101 (619) 696-4350 daking@sempra.com Case Administration SOUTHERN CALIFORNIA EDISON COMPANY LAW DEPARTMENT, ROOM 370 2244 WALNUT GROVE AVENUE ROSEMEAD CA 91770 (626) 302-6838 Case.Admin@sce.com For: SOUTHERN CALIFORNIA EDISON COMPANY Laura Genao SOUTHERN CALIFORNIA EDISON COMPANY LAW DEPARTMENT PO BOX 800 2244 WALNUT GROVE AVE. ROSEMEAD CA 91770 (626) 302-6842 laura.genao@sce.com For: SOUTHERN CALIFORNIA EDISON COMPANY Kevin Woodruff WOODRUFF EXPERT SERVICES 1100 K STREET, SUITE 204 SACRAMENTO CA 95814 (916) 442-4877 kdw@woodruff-expert-services.com

(END OF APPENDIX A)