STATE OF CALIFORNIA GRAY DAVIS, Governor

PUBLIC UTILITIES COMMISSION

505 VAN NESS AVENUE

SAN FRANCISCO, CA 94102-3298

June 8, 2001

TO: PARTIES OF RECORD IN APPLICATION 93-12-029,

INVESTIGATION 94-04-003

This is the draft decision of Administrative Law Judge Timothy J. Sullivan, previously designated as the principal hearing officer in this proceeding. It will be on the Commission's agenda for June 14, 2001.

This draft decision is being mailed for the information of the parties only. No comments will be accepted.

/s/ LYNN T. CAREW

LYNN T. CAREW, Chief

Administrative Law Judge

LTC:t94

ALJ/TJS/t94 DRAFT Item 10

6/14/2001

Decision DRAFT DECISION OF ALJ SULLIVAN (Mailed 6/8/2001)

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of SOUTHERN CALIFORNIA EDISON COMPANY to Adopt a Performance-Based Ratemaking (PBR) Mechanism Effective January 1, 1995. ____________________________________________ Commission Order Instituting Investigation into Changing the Method, Timing and Process for Periodically Deriving a Reasonable Revenue Requirement for the SOUTHERN CALIFORNIA EDISON COMPANY.

Application 93-12-029 (Filed December 23, 1993) Investigation 94-04-003 (Filed April 6, 1994)

OPINION EXTENDING SOUTHERN CALIFORNIA EDISON COMPANY'S

PERFORMANCE-BASED RATEMAKING MECHANISM

I.  Summary

This decision extends Southern California Edison Company's (Edison) Performance-Based Ratemaking (PBR) mechanism until superseded by Edison's next General Rate Case (GRC).