Grau Agenda Dec. OII and Order to Show Cause Directed to So. Ca Edison, its officers and employees for their failure to comply with D0106039

OII and Scope of Proceeding

Based on good cause as shown in the background section above, and as described below, this OII shall be opened to investigate the actions of Edison and its officers and employees for non-compliance with D.01-06-039. This OSC shall issue to permit Edison, its officers and employees to show cause whether or not they should be held in contempt and referred to the appropriate authorities to file criminal proceedings for their failure to comply with D.01-06-039. This OII and related OSC are issued subject to the authority granted to the Commission under Public Utilities Code §§ 702, 2101, 2109, 2110, and 2113. Edison and its officers and employees responsible for failing to comply with D.01-06-039 shall be made respondents to this OII and the related OSC.

The above-referenced code provisions require compliance with Commission orders, decisions, directions or rules and permit the Commission to punish by contempt for failure to comply with any part of a Commission order, decision, rule, regulation, direction, demand, or requirement. Further, the Commission may request the appropriate authorities to file criminal charges for such failure to comply.

This OII and related OSC shall also determine whether Edison and its officers and employees should be subject to the penalties provided for in Public Utilities Code §§ 2107, 2108, and 2113. Public Utilities Code § 2107 provides for a penalty of not less than $500, nor more than $20,000 for each offense. Public Utilities Code § 2108 provides that:

"Every violation of the provisions of this part or of any part of any order, decision, decree, rule, direction, demand, or requirement of the commission, by any corporation or person is a separate and distinct offense, and in case of a continuing violation each day's continuance thereof shall be a separate and distinct offense."

Public Utilities Code § 2113 provides that the Commission may punish for contempt "in the same manner and to the same extent as contempt is punished by courts of record."

In assessing any appropriate penalties, the Commission will also consider whether Edison should be directed to notify its shareholders of any violation of the Public Utilities Code and of the non-tax deductibility of any penalties that may be imposed.

Edison is directed to file with the Commission on or before December 14, 2001 a list of all Edison officers and employees who decided that Edison would not tender its TY 2003 NOI on September 13, 2001.

The hearing on the OSC will be held starting on December 19, 2001, at 10:00 a.m. at the State Office Building, 505 Van Ness Avenue, San Francisco. The hearing shall continue on a day-to-basis until concluded. Edison and its responsible officers and employees shall be prepared on those dates and time to show cause whether or not Edison and its officers and employees failed to comply with D.01-06-039, whether or not they should be held in contempt, whether or not the Commission should request that criminal proceedings be initiated, and whether or not they should be subject to the penalties available to the Commission. The Commission staff is directed to appear at the hearing on the OSC to cross-examine Edison's witnesses, as necessary. Other interested persons may participate in this OII as provided for in Rule 54 of the Commission's Rules of Practice and Procedure.