EMPLOYEE HEALTH AND SAFETY

Rewards and penalties for employee health and safety are determined based on SCE's performance related to a benchmark for the frequency of all industrial injuries and illnesses. An index number (per 200,000 hours worked) is developed using the number of incidents, actual work-hours, number of employees, and various other factors. If this Index number falls within 12.7 and 13.3, there is no reward or penalty against the utility. As the Index decreases from 12.7, the utility is progressively rewarded for its good performance to a maximum reward of $5.0 million when the Index reaches 11.8 or less. On the other hand, if the Index increases above 13.3, the utility is progressively penalized for its performance to a maximum penalty of $5.0 million when the Index is 14.2 or more. For 1998, SCE reports an Index of 7.9 per 200,000 hours worked with a maximum reward of $5.0 million. Energy Division has reviewed this calculation and concurs with this reward.

For 1998, SCE reported to the Commission's Utilities Safety Branch zero human fatalities for SCE employees and 12 human fatalities to non-SCE employees. SCE's Health and Safety (H&S) PBR Mechanism does not take into account the severity of accidents. The H&S mechanism is based on total number of injuries and illnesses related to the workplace.