6. Phase 2 of Proceeding

On November 12, 2008 parties conducted a telephonic hearing to discuss the proceedings necessary for resolution of this application. Parties agreed that the issue of the reasonableness of the costs requested by SCE for the peaker units could not properly be addressed by the stakeholders until the Commission made a determination as to what customer base would pay the costs. After this decision is issued by the Commission, we will determine procedures and a schedule for final resolution of the issues presented in the application.