FINDINGS

1. D. 96-08-025 authorized SCE's EDR Tariffs and Agreements, but does not permit the shifting of costs between EDR customers and non-EDR customers.

2. EDR tariffs provide discounts off customers' OATs to attract new customers, retain existing customers, or to encourage existing customers to expand in SCE's territory.

3. It is currently not desirable to increase California's electric load.

4. Current EDR agreements require EDR customers to pay a minimum charge, based on the cost of providing the service, even if that minimum charge is more than the customers OAT.

5. The current high cost of electricity has caused some EDR Agreements minimum charges to exceed the customers OAT.

6. The EDR tariffs should be closed to new customers.

7. It is reasonable to allow EDR customers to transfer to their OAT without paying liquidated damages.

8. SCE has billed EDR customers a rate capped at the OAT rather than the minimum charge required by its filed tariff, because it interpreted the minimum charge provision as being capped by the OAT.

9. SCE filed Advice Letter 1461-E on July 3, 2000, requesting approval of SCE's interpretation that the minimum charge provision of its EDR Tariffs and Agreements should not result in rate higher than the EDR customer's OAT, and requesting authorization to revise the EDR Tariffs and Agreements to support this interpretation.

10. ORA protested Advice Letter 1461-E claiming SCE's proposal would shift costs from EDR customers to non-EDR customers.

11. SCE's interpretation of the tariff is not supported and should be rejected.

12. SCE's filed EDR tariffs is not in compliance with the floor price provision adopted in D.96-08-025.

13. SCE's EDR customers should be required to pay the rates adopted by the Commission rather than the rates improperly filed in SCE tariffs.

14. It is unreasonable to shift costs incurred by EDR customers to other SCE customers.

15. SCE must collect the filed tariff rate unless given specific Commission Authorization to collect a different rate.

16. SCE should be permitted to have its shareholders fund some or all of the under-collection of EDR customers rates.