3. Scoping Ruling

In the December 18, 2007 Scoping Ruling of Assigned Commissioner and Administrative Law Judge, the following were identified as issues in the proceeding:

1. Are the contracts reasonable and should they be approved?

2. Is SCE's proposed budget for administering the contracts reasonable?

3. Do these contracts adhere to current Commission regulations and guidance?

4. Is SCE's cost recovery and ratemaking proposal reasonable?

5. Should the demand reductions achieved by the contracts count towards the Commission's goals for Edison's demand response program portfolio if such goals are adopted by the Commission?

6. Does SCE have a need for the proposed resources in 2008 and beyond?

7. Are the contracts and administration of the contracts consistent with the likely future wholesale market design? Should the contracts be approved or modified based on expected outcomes or anticipated policy changes to the wholesale market design?

8. Should these contracts be approved or modified based on expected outcomes or anticipated policy changes in R.07-01-041?

9. How should the resource adequacy credits associated with the contracts be allocated to the load-serving entities, given previous Commission guidance?

10. Will customers that sign up with aggregators through these programs also be able to participate in dynamic pricing rates such as critical peak pricing or real time pricing, if approved by the Commission in the future?

11. Should the Commission authorize SCE to negotiate changes to the baseline methodology in the event the Commission approves a different baseline methodology?

We will address each of the above issues in this order, to the extent relevant or controversial.