4. Competitive Bidding Rule

The Commission has a long history of exempting many forms of borrowing from its general rule (Resolution F-616) which requires competitive bidding. Generally, competitive bidding ensures that the transactions are at arms length with the bidders and are open to the widest possible market to attract as favorable a rate and terms as possible. The Commission exempts financing from this rule when the applicant persuades us that the type or size of the transaction is likely to be more cost effective when there are direct negotiations with potential lenders. As previously noted prior decisions have exempted financing when the transaction (i) exceeds a principal amount of $ 200 million, and, or (ii) utilizes a variable-rate debt.

Edison proposes no change to the completive bidding rule exemption. We know of no need to change or rescind this authority. Therefore, we affirm that the authority granted herein is exempt from the rule when the transaction (i) exceeds a principal amount of $ 200 million, and, or (ii) utilizes a variable-rate debt.