Preliminary Environmental Assessment

Pursuant to a March 9, 2004, ALJ ruling, Edison prepared and submitted a PEA on August 6, 2004. The ruling directed Edison to address the "necessary construction activities at the [Mohave] site" if the installation of pollution controls and other retrofits were to proceed. In the PEA Edison indicates that the construction activities would span approximately a three-year period from commencement of construction. Even if all the outstanding water and coal issues are sufficiently resolved in 2004 enabling Edison to apply for Commission approval of its share of Mohave investments by early 2005, Edison still projects that the project would not be completed until 2009 to 2010.

The PEA identified that the projected construction activities would have potential adverse impacts to air quality, biological resources, cultural resources and hydrology/water quality. By implementing mitigation measures, Edison opines that all of these impacts can be mitigated to less-than-significant levels.

We do not know if any other environmental review will be required by Arizona or federal laws or statutes.