Decision 06-06-040 June 15, 2006

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Application of Southern California Edison Company (U 338-E) for Authorization: (1) to Replace San Onofre Nuclear Generating Station Unit Nos. 2 & 3 (SONGS 2 & 3) Steam Generators; (2) Establish Ratemaking for Cost Recovery; and (3) Address Other Related Steam Generator Replacement Issues.

Application 04-02-026 (Filed February 27, 2004)

ORDER MODIFYING D.05-12-040 IN CERTAIN RESPECTS,

GRANTING LIMITED REHEARING,

AND DENYING REHEARING IN ALL OTHER RESPECTS

I. SUMMARY

We issue this order in response to an application for rehearing (Application) of Decision (D.) 05-12-040 (Decision) filed by The Utility Reform Network (TURN) and the California Earth Corps (CEC). The Application makes seven broad allegations of error, each of which discusses a number of points. For the most part, we deny the claims made in the Application. However, in two respects, we grant limited rehearing to address issues that came to light during our review of the Application's claims:

1. Limited rehearing will be granted to take into account the correct results of the net present value calculation, which were not included in the Decision.

2. Limited rehearing will be granted to determine amount of the GHG adder.

Except for these specific issues, our careful consideration of the Application shows that the Decision is not in error in any other respect, and the Application's remaining claims will be denied. In certain areas we will modify the Decision to make its intent clearer.