STATE OF CALIFORNIA GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

June 6, 2001 Item 14

6/14/2001

TO: PARTIES OF RECORD IN APPLICATION 93-12-025/
INVESTIGATION 94-02-002

This is the draft decision of Administrative Law Judge (ALJ) Janet Econome. It will be on the Commission's agenda at the meeting on June 14, 2001. The Commission may act then, or it may postpone action until later.

When the Commission acts on the draft decision, it may adopt all or part of it as written, amend or modify it, or set it aside and prepare its own decision. Only when the Commission acts does the decision become binding on the parties.

Pursuant to Rule 77.7(f)(9), comments on the draft decision must be filed no later than Monday, June 11, 2001, and no reply comments will be accepted.

In addition to service by mail, parties should send comments in electronic form to those appearances and the state service list that provided an electronic mail address to the Commission, on the Phase I service list, including ALJ Econome at jjj@cpuc.ca.gov. Finally, comments must be served separately on the Assigned Commissioner, and for that purpose, I suggest hand delivery, overnight mail, or other expeditious methods of service.

/s/ LYNN T. CAREW

Lynn T. Carew, Chief

Administrative Law Judge

LTC:k47

Attachments

ALJ/JJJ/k47 DRAFT Item 14

6/14/2001

Decision DRAFT DECISION OF ALJ ECONOME (Mailed 6/6/2001)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

In the Matter of the Application of SOUTHERN CALIFORNIA EDISON COMPANY (U 338-E) for Authority to Increase Its Authorized Level of Base Rate Revenue under the Electric Revenue Adjustment Mechanism for Service Rendered Beginning January 1, 1995 and to Reflect this Increase on Rates. ____________________________________________ Order Instituting Investigation into the Rates, Charges, and Practices of SOUTHERN CALIFORNIA EDISON COMPANY, Establishment of the Utility's Revenue Requirement, and Attrition Request.

Application 93-12-025 (Filed December 27, 1993) Investigation 94-02-002 (Filed February 3, 1994)

OPINION ON SOUTHERN CALIFORNIA EDISON COMPANY'S

PETITION FOR MODIFICATION OF DECISION 96-04-059

I. Summary

This decision modifies Decision (D.) 96-04-059 to eliminate a revenue sharing mechanism and associated pricing provisions adopted for San Onofre Nuclear Generating Unit Nos. 2&3 (SONGS 2&3). The decision also clarifies that Southern California Edison Company (Edison) will have an obligation to serve ratepayers with SONGS 2&3 generation after 2003.