5. Assignment of Proceeding

Carl W. Wood is the Assigned Commissioner and Mark S. Wetzell is the assigned Administrative Law Judge in this proceeding.

Findings of Fact

1. The Rate Case Plan is not an entitlement that guarantees utilities immunity from any adverse effects of procedural delays.

2. Failure of the Commission to provide adequate time for ORA to participate in a meaningful way in this proceeding would be in contravention of the statutory obligation set forth in Pub. Util. Code Section 309.5(c).

3. SCE's proposes a memorandum account to offset the financial consequences of the difference between the date the Commission adopts its final decision in this proceeding and the date that the decision would have been expected under the Rate Case Plan.

4. SCE's proposed memorandum account is consistent with our objectives to leave both ratepayers and shareholders essentially indifferent to the precise date that the final decision is delivered; remove incentives for any procedural gaming that might be attempted if gains could be realized through delay; and allow sufficient time, for parties as well as decisionmakers, for review and critical analysis of the record.

5. SCE's proposal to determine the balance in the memorandum account and either transfer said balance to the Settlement Rates Balancing Account or recover said balance through applicable rate components is premature.

Conclusions of Law

1. SCE's proposed memorandum account will enable the Commission to strike a fair balance of shareholder and ratepayer interests when it issues its decision on SCE's base rate revenue requirement.

2. SCE's motion should be granted to the extent set forth in the following order.

3. SCE's proposal to determine the balance in the memorandum account and either transfer said balance to the Settlement Rates Balancing Account or recover said balance through applicable rate components should be dismissed without prejudice. The Commission retains the discretion to determine the appropriate disposition of the memorandum account balance.

4. The authorization granted herein does not bind the Commission to grant the requested revenue requirement, or any portion thereof, as such a grant can only be made upon the development of a complete evidentiary record, and full and fair consideration of the record by the Commission.

ORDER

IT IS ORDERED that:

1. The motion of Southern California Edison Company (SCE) for authority to establish a memorandum account and for related rate recovery is granted to the extent set forth in Ordering Paragraph 2, and is otherwise dismissed without prejudice.

2. SCE is authorized to establish a memorandum account to track the revenue requirement that it has requested in this application during the period between May 22, 2003 and the date a final decision on that request is adopted in this proceeding.

3. Within 10 days of the effective date of this order, SCE shall file revised tariff sheets to implement the memorandum account and related rate recovery provisions authorized herein. The revised tariff sheets shall become effective upon filing, subject to a finding of compliance by the Energy Division, and shall comply with General Order 96-A.

This order is effective today.

Dated May 22, 2003, at San Francisco, California.

MICHAEL R. PEEVEY

President

CARL W. WOOD

SUSAN P. KENNEDY

Commissioners

I dissent.

/s/ GEOFFREY F. BROWN

Commissioner

I dissent.

/s/ LORETTA M. LYNCH

Commissioner