5. Competitive Bidding Rule

The Commission has a long history of exempting borrowing from its general rule (Resolution F-616) to require competitive bidding. Competitive bidding promotes arms length transactions that 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 for Edison's regulatory balancing accounts and procurement-related collateral costs 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.