III. SCE's Request

In this application, SCE requests that the Commission approve the replacement of SONGS' steam generators. Specifically, SCE requests that the Commission:

· Find it reasonable to perform the SGRP.

· Provide for rate recovery of construction financing costs as they are incurred, subject to a reasonableness review.

· Provide for an increase in SONGS depreciation expense beginning in 2006 and ending in 2011 to provide for the removal and disposal of the original steam generators, subject to a reasonableness review.

· Provide for each unit's portion of the SGRP costs to receive ratebase recovery (not to exceed the estimate of reasonable costs) upon their completion, subject to a reasonableness review.

· Establish an estimate of the reasonable cost of $569 million (total project), excluding construction financing costs, and removal and disposal costs for the original steam generators, subject to a reasonableness review.

· Find that the SGRP will have no significant immitigable potential environmental impact.

· Determine that the impact on SCE and its ratepayers of a reduction in SDG&E's ownership share will be addressed in SDG&E's § 851 application.

SCE requests that approval of the SGRP in this proceeding means that the Commission will not disallow SGRP costs on the basis that the decision to undertake the SGRP is unreasonable.

We note that in this proceeding, SCE provided a detailed explanation of its request along with substantial documentation. Therefore, we find that it presented a prima facie case. As a result, in this decision we will address only those areas where there are differences between SCE and one or more parties.