Conclusions of Law

1. The date that the competent state or federal authority declared a disaster is immaterial as to the commencement of the event, particularly where there is no clear-cut date when the disaster commenced. The bark beetle infestation commenced prior to March 12, 2002, and the "competent state or federal authority" requirement found in both Section 454.9 and Res. E-3238 was met.

2. Permitting SCE to now incur costs to reimburse property owners for costs associated with the removal of dead or dying trees prior to the date that SCE's CEMA became effective (April 3, 2003) is not retroactive ratemaking since SCE will not incur these costs until sometime in 2005 or beyond, well after the April 3, 2003 date of its bark beetle CEMA.

3. The prohibition against retroactive ratemaking only applies to general rates of the utility. A pass-through reimbursement of costs by property owners would not constitute a general rate.

4. The petition to modify should be granted to the extent provided herein.

5. Property owners who removed trees in response to Emergency Proclamations issued by the Boards of Supervisors of San Bernardino, Riverside, and San Diego counties on or after March 12, 2002 and who meet SCE's standards for reimbursement, should be reimbursed for their reasonable costs of tree removal.

6. SCE should record such reimbursements in its CEMA for recovery.

ORDER

IT IS ORDERED that:

1. Southern California Edison Company (SCE) shall supplement Advice Letter 1730-E, within 30 days from the effective date of this order, with an advice letter requesting authorization to record in its bark beetle Catastrophic Event Memorandum Account reimbursements to property owners who (i) removed trees in response to Emergency Proclamations issued by the Boards of Supervisors of San Bernardino, Riverside, and San Diego counties on or after March 12, 2002 and (ii) meet SCE's standards for reimbursement.

2. The advice letter shall be effective upon approval of the Energy Division.

3. In the interest of achieving a full, timely, and effective resolution of the substantive issues presented, this proceeding is recategorized from adjudicatory to ratesetting.

4. The Executive Director shall serve a copy of this decision on all parties to Resolution E-3824 and Application 02-05-004.

5. Case 04-06-036 is closed.

This order is effective today.

Dated June 16, 2005, at San Francisco, California.

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