September 25, 2002 PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION

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2 Akbar Jazayeri Director of Revenue and Tariffs September 25, 2002 ADVICE 1652-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Establishment of CARE Ratemaking in Compliance with Decision In compliance with Decision (D.) and Senate Bill (SB) X2 2, Southern California Edison Company (SCE) hereby submits for filing the following changes to its tariff schedules. The revised tariff sheets are listed on Attachment A and are attached hereto. PURPOSE This advice filing is made to: (1) establish the CARE balancing account (CBA); (2) revise Preliminary Statement, Part O, CARE Adjustment Clause; and (3) revise Preliminary Statement, Part Z, Settlement Rates Balancing Account (SRBA). BACKGROUND On July 17, 2002, the California Public Utilities Commission (Commission) issued D which, among other things, established minimum CARE penetration rate targets for Program Year (PY) 2002 by utility 1 and adopted a CARE automatic enrollment program. The automatic enrollment program will enroll customers of the utilities into CARE when they participate in any of the following partner agency programs: Women, Infants and Children (WIC) or Medi-Cal, both of which are administered through the California Department of Health Services; Healthy Families administered by the Managed Risk Medical Insurance Board; or the 1 Pacific Gas and Electric Company, SCE, Southern California Gas Company, and San Diego Gas & Electric Company. P.O. Box Walnut Grove Ave. Rosemead, California (626) Fax (626)

3 ADVICE 1652-E (U 338-E) September 25, 2002 Energy Assistance Programs administered by the Department of Community Services and Development. 2 On September 5, 2002, the Commission adopted D to set forth the implementation of SBX2 2 which authorized the recovery of CARE program costs, 3 subject to reasonableness review, through a balancing account mechanism. In D , the Commission adopted SCE s proposed balancing account treatment for all CARE-related expenses. In addition, D adopts the CARE budgets for Program Year The budgets cover all CARE-related activities with the exception of those specifically associated with the automatic enrollment program, which will be tracked separately in the new CBA. Ratemaking Ordering Paragraphs 5 and 9 of D requires SCE to establish the adopted ratemaking treatment for CARE-related expenses. Accordingly, the CBA is being established in this filing to record on a monthly basis: (1) the undercollection or overcollection in revenue which results from the difference between the amount of the CARE Discount provided to CARE program participants and the CARE Surcharge charged to non-care customers; (2) the difference between the Commission-authorized CARE administrative costs recorded in the Public Purpose Programs Adjustment Mechanism (PPPAM) and actually incurred CARE administrative costs; (3) actual costs incurred associated with the automatic enrollment program per D ; and (4) reimbursements made to the Energy Division associated with Energy Division s audit of SCE s CARE programs. SCE is also revising Preliminary Statement, Part Z, Settlement Rates Balancing Account (SRBA) as required by D The revision to the SRBA is necessary because the undercollection or overcollection which results as the difference between the amount the CARE Discount and the amount of the CARE Surcharge will now be recorded in the CBA, and not the SRBA. In addition, SCE is revising Preliminary Statement, Part O, California Alternate Rates For Energy, such that Preliminary Statement, Part O, will now include all pertinent information related to the CARE Surcharge (e.g., definitions and the actual amount of the Surcharge). No cost information is required for this advice filing. 2 D , page 7. 3 Administrative costs include, but are not limited to, outreach, marketing, regulatory compliance, certification and verification, billing, measurement and evaluation, and capital improvements and upgrades to communications and processing equipment. D , pages See Attachment 5 of D

4 ADVICE 1652-E (U 338-E) September 25, 2002 This advice filing will not increase any rate or charge, cause the withdrawal of service, or conflict with any other schedule or rule. EFFECTIVE DATE Pursuant to D , Ordering Paragraph 5, this advice filing is effective upon filing, subject to Energy Division determining that it is in compliance with the decision. NOTICE Anyone wishing to protest this advice filing may do so by letter via U.S. Mail, facsimile, or electronically, any of which must be received by the Energy Division and SCE no later than 20 days after the date of this advice filing. Protests should be mailed to: IMC Program Manager Energy Division California Public Utilities Commission c/o Jerry Royer 505 Van Ness Avenue, Room 4002 San Francisco, California Facsimile: (415) jjr@cpuc.ca.gov Copies should also be mailed to the attention of the Director, Energy Division, Room 4004 (same address above). In addition, protests and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of: Akbar Jazayeri Director of Revenue and Tariffs Southern California Edison Company c/o Emelyn Lawler 2244 Walnut Grove Avenue, Room 303 Rosemead, California Facsimile: (626) Emelyn.Lawler@sce.com

5 ADVICE 1652-E (U 338-E) September 25, 2002 Bruce Foster Vice President of Regulatory Operations Southern California Edison Company c/o Karyn Gansecki 601 Van Ness Avenue, Suite 2040 San Francisco, California Facsimile: (415) Karyn.Gansecki@sce.com There are no restrictions on who may file a protest, but the protest shall set forth specifically the grounds upon which it is based and shall be submitted expeditiously. In accordance with Section III, Paragraph G, of General Order No. 96-A, SCE is furnishing copies of this advice filing to the interested parties shown on the attached service list and A Address change requests to the attached GO 96-A Service List should be directed to Emelyn Lawler at (626) or by electronic mail at Emelyn.Lawler@sce.com. For changes to all other service lists, please contact Maria Vengerova of the Commission s Process Office at (415) or by electronic mail at ven@cpuc.ca.gov. Further, in accordance with Public Utilities Code Section 491, notice to the public is hereby given by filing and keeping the advice filing open for public inspection at SCE s corporate headquarters. To view other SCE advice letters filed with the Commission, log on to SCE s web site at and choose Regulatory Info Center/Advice Letters. For questions, please contact Doug Snow at (626) or by electronic mail at Douglas.Snow@sce.com. Southern California Edison Company AJ:eml/ds Enclosures Akbar Jazayeri

6 Public Utilities Commission 1652-E Attachment A Cal. P.U.C. Sheet No. Title of Sheet Cancelling Cal. P.U.C. Sheet No. Revised E Preliminary Statement Part O Revised E Revised E Revised E Preliminary Statement Part O Revised E Revised E Preliminary Statement Part O Revised E Revised E Preliminary Statement Part O Revised E Revised E Preliminary Statement Part O Revised E Revised E* Preliminary Statement Part Z Revised E* Original E Original E Preliminary Statement Part AA Preliminary Statement Part AA Revised E* Table of Contents Revised E Revised E Table of Contents Revised E 1

7 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E E PRELIMINARY STATEMENT Sheet 1 O. CALIFORNIA ALTERNATE RATES FOR ENERGY (CARE) 1. Purpose. The purpose of the CARE is to reflect in rates, through application of the Public Purpose Program Charge (PPPC), of which the CARE Surcharge component is reflected as set forth in Part O, Section 5 below, the costs associated with the CARE Program as authorized in Decision Nos , , , , and Applicability. The CARE provision applies to certain rate schedules and certain special contracts subject to the jurisdiction of the Commission. 3. Definitions. a. Effective Date: The Effective Date for the revised CARE shall be the Revision Date or such other date that the Commission may authorize. The revised CARE shall be applied to sales for service rendered on and after the Effective Date and shall continue thereafter until the next such CARE becomes effective. (D) 1H10

8 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 2 O. CALIFORNIA ALTERNATE RATES FOR ENERGY (CARE) 3. Definitions. b. CARE Program Costs: CARE Program Costs are the sum of: (1) the amount of discount to CARE Households (California Alternate Rates For Energy Households are defined in Schedule D-CARE), Group Living Facilities (as defined in Section 3.d.)and Agricultural Employee Housing (as defined in Section 3.f.), which is equal to the revenues billed pursuant to the California Alternative Rates for Energy Discount; and (2) incremental administrative and general expenses (increased to provide for Franchise Fees and Uncollectible Accounts) associated with the CARE Program which are defined as costs, including labor overheads, resulting from performing incremental activities which would not have been incurred absent the CARE Program. Incremental administrative and general expenses which are reflected in base rates shall not be included in CARE Program Costs. c. Revision Date: The Revision Date for the CARES shall be coincident with the Revision Date associated with the annual Revenue Adjustment Proceeding (RAP) or other proceeding expressly authorized by the Commission. Applications for CARES revisions, calculated in accordance with the provisions described herein, shall be made concurrent with applications for annual RAP rate revisions. d. Group Living Facility: A non-profit facility such as transitional housing, short or long term care facility, or a group home for physically or mentally disabled persons either licensed by the appropriate state agency such as the Department of Social Services, the Department of Health Services, or the Department of Drug and Alcohol Programs or in the absence of a license, a facility that can provide, to the satisfaction of the Utility, it is eligible to participate. All facilities must be operated by a corporation with 501(c)(3) IRS Status, whose primary purpose is to provide living facilities where 100% of the residents individually meet the Commission's CARE eligibility standard for a single-person household and where at least 70% of the facility's energy is used for residential purposes. Homeless Shelters qualify as a group living facility if the homeless shelter has at least 6 beds, is open a minimum of 180 days a year, and 70% of the facility's energy is used for residential purposes. Each homeless shelter must also provide a conditional use permit and a copy of the Internal Revenue Service letter granting the shelter non-profit status to obtain the discount. 2H5

9 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 3 O. CALIFORNIA ALTERNATE RATES FOR ENERGY (CARE) 3. Definitions. d. Group Living Facility: A satellite facility may qualify as a group living facility if the satellite facility is associated with a non-profit corporation ("mothership") and the mothership facility is licensed by the appropriate state agency as defined in Preliminary Statement, Part O.3.d. In addition, at least 70% of the energy consumed by the satellite facility must be used for residential purposes and the mothership facility is Edison's customer of record for the satellite facility. The following types of facilities do not qualify as group living facilities: Publicowned, Government-owned and/or operated and government-subsidized facilities that provide lodging only, and student housing or student dormitories. A group living facility which otherwise qualifies for CARE under the qualifications set forth above shall not be deemed ineligible because compensation for room and board is provided to individual residents of the facility by a government agency under a disability, Supplemental Security Income (SSI), Social Security Administration, or other governmental Assistance Program. e. Application and Eligibility Declaration for Group Living Facility: An application and eligibility declaration, Form No , is required for each request for service under this schedule. The facility must certify that 100% of the residents individually meet the Commission's CARE eligibility standard for a single-person household, that at least 70% of the facility's energy is used for residential purposes, and that the energy assistance produced by the discount is being used for the direct benefit of the residents of the facility. Residents of a homeless shelter automatically meet the eligibility standards. Renewal of a customer's eligibility declaration will be required on an annual basis. Information provided by the customer is subject to verification by the Company. Refusal or failure by the customer to provide documentation of eligibility acceptable to the Company, shall result in the denial or termination of the CARE discount. 3C4

10 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 4 O. CALIFORNIA ALTERNATE RATES FOR ENERGY (CARE) 3. Definitions. f. Agricultural Employee Housing: Three types of housing as defined in Section of the PU Code. (1) Migrant Farmworker Housing Centers provided pursuant to Section of the Health and Safety Code where the total energy used for residential purposes is 70% for master-metered facilities and 100% for individually metered units and has a current contract with the office of migrant services, Department of Housing and Community Development (2) Employee Housing which is privately owned, defined in Section of the Health and Safety Code, and licensed and inspected by state and/or local agencies pursuant to Part I (commencing with Section 17000) of Division of the Health and Safety code and total energy used must be 100% residential (3) Housing for Agricultural Workers which is operated by non-profit entities, as defined in Subdivision (b) of Section of the Labor Code, that has an exemption from local property taxes pursuant to Subdivision (g) of Section 214 of the Revenue and Taxation Code and total energy used for residential purposes is 70% for master-metered facilities and 100% for individually metered units g. Application and Declaration for Agricultural Employee Housing: An application and eligibility declaration, Form No , is required for each type of individual facility as defined in Preliminary Statement Part O.3.f., the applicant must be the utility customer of record and verify that 100% of the residents meet the CARE income guidelines, excluding any employee operating or managing the facility who resides at the facility. The applicant is required to certify CARE eligibility annually by completing a new application and providing (1) how the discount will be used in the coming year for the direct benefit of the residents and (2) how the past year's discount was used for the direct benefit of the residents at the first recertification and each year thereafter. Information provided by the customer is subject to verification by the Company. Refusal or failure to provide documentation of eligibility acceptable to the Company shall result in the denial or termination of the CARE discount. 4H5

11 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 5 O. CALIFORNIA ALTERNATE RATES FOR ENERGY (CARE) 5. Calculation of the CARE Surcharge (CARES). The CARES shall remain at the 1996 level adopted in Decision ; however, it will be reflected in the Public Purpose Programs Charge (PPPC), as adopted in D The CARES listed below have been, or are, in effect for the periods indicated: Effective Date CARES Per kwh 02/01/90 $ /01/91 $ /20/92 $ /05/93 $ /24/94 $ /01/95 $ /01/96 $ (D) 5H11

12 Southern California Edison Original Cal. PUC Sheet No E Rosemead, California Cancelling Cal. PUC Sheet No. PRELIMINARY STATEMENT Sheet 1 AA. CALIFORNIA ALTERNATIVE RATES FOR ENERGY (CARE) BALANCING ACCOUNT 1. Purpose The purpose of the CARE Balancing Account (CBA) is to record on a monthly basis: (1) the under or overcollection in revenue which results from the difference between the amount of the CARE Discount provided to CARE-eligible customers and the CARE Surcharge charged to non-care customers; (2) the difference between the Commission authorized CARE administrative costs recorded in the Public Purpose Programs Adjustment Mechanism (PPPAM) and actually incurred CARE administrative costs; (3) actual costs incurred associated with the automatic enrollment program per D ; and (4) reimbursements made to the Energy Division associated with Energy Division s audit of SCE s CARE programs. 2. Effective Date The effective date of the CBA is January 1, Definitions a. Annual Authorized CARE Administrative Costs Program Year Authorized Amount Decision 2002 $3,078,338 D b. Interest Rate: The Interest Rate shall be 1/12 of the most recent month s interest rate on Commercial Paper (prime, 3 months), published in the Federal Reserve Statistical Release, G.13. Should publication of the interest rate on Commercial Paper (prime, three months) be discontinued, interest will accrue at the rate of 1/12 of the most recent month s interest rate on Commercial Paper that most closely approximates the rate that was discontinued, and which is published in the Federal Reserve Statistical Release, G.13, or its successor publication. c. Franchise Fees and Uncollectibles Franchise Fees and Uncollectible Accounts Expense (FF&U) shall be calculated using the factors most recently authorized by the CPUC. d. Rate Repayment Period The period commencing September 1, 2001 and ending on the earlier of the date that SCE recovers all Procurement Related Obligations recorded in the PROACT or December 31, e. Settlement Agreement The agreement entered into by the Commission and SCE in Southern California Edison Company, Plaintiff, vs. Loretta M. Lynch et. al., United States District Court for the Central District of California, Case No RSWL(Mcx). 1H15

13 Southern California Edison Original Cal. PUC Sheet No E Rosemead, California Cancelling Cal. PUC Sheet No. PRELIMINARY STATEMENT Sheet 2 AA. CALIFORNIA ALTERNATIVE RATES FOR ENERGY (CARE) BALANCING ACCOUNT 4. Operation of CBA Entries to the CBA shall be made on a monthly basis, and shall be calculated as follows (all amounts recorded in the CBA shall exclude FF&U expenses): a. CARE Subsidy (Over)/Under Collection calculated as follows: (1) Credit entry equal to the amount of revenue billed associated with the CARE Surcharge rate component; (2) Debit entry equal to the amount of the CARE Discount reflected on customer s bills. b. CARE Administration (Over)/Under Collection calculated as follows: (1) Credit entry equal to the Annual Authorized CARE Administrative Costs divided by 12 as recorded in the PPPAM; (2) Debit entry equal to the actual amount of CARE Administrative costs incurred (excluding costs associated with the automatic enrollment program and the Energy Division audit that, pursuant to D , shall be tracked separately - See 4.c and 4.d below) c. Automatic Enrollment-related Expenses Debit entry equal to the actual amount of expenses associated with the automatic enrollment program. d. Energy Division Audit-related Expenses Debit entry to the actual amount of expenses that SCE reimburses the Energy Division related to Energy Division s audit of SCE s CARE programs. If the sum of a through d above results in a positive amount (under-collection) then such amount shall be debited to the CBA. If the sum of a and d above results in a negative amount (over-collection) then such amount shall be credited to the CBA. Interest shall accrue to the CBA on a monthly basis by applying the Interest Rate to the average of the beginning and ending CBA balances. Disposition of amounts recorded in the CBA shall be determined in a future proceeding before the Commission. Pursuant to D , the balance in the CBA is to be recovered after the end of the Rate Repayment Period, as defined in SCE s Settlement Agreement with the Commission. 2H10

14 Southern California Edison Revised Cal. PUC Sheet No E* Rosemead, California Cancelling Revised Cal. PUC Sheet No E* PRELIMINARY STATEMENT Sheet 4 Z. SETTLEMENT RATES BALANCING ACCOUNT 3. Definitions m. Total Retail Electric Revenues shall be equal to the sum of the following: 4. Operation of the SRBA (1) The total amount of revenues billed each month (including CPUC-authorized surcharges, and all CPUC-authorized discounts reflected on customers bills (e.g., the 10% rate reduction, and the 20/20 program) associated with the kwh provided by SCE and DWR; and (2) The change (plus or minus) in total Unbilled Revenues (i.e., the reversal of prior month s estimate, plus the current month s estimate). Total Electric Revenues will include amounts recorded from the nonbypassable Historical Procurement Charge (charged to Direct Access customers pursuant to D ) until such time as SCE is directed by the Commission to credit the balance in the Historical Procurement Charge Balancing Account. In order to determine amounts to be transferred to the PROACT, entries to the SRBA shall be made monthly based upon the following calculations: a. Credit entry equal to SCE Retail Electric Revenues determined as follows: (1) Credit entry equal to the Total Retail Electric Revenue; (2) A debit entry equal to the provision for Franchise Fee Requirements associated with item (1); (3) Sum of items (1) and (2) is equal to the total amount of retail revenue available to be allocated between SCE and DWR. (4) A debit entry equal to the DWR Power Sale Revenues; (5) A debit entry equal to the provision for Uncollectibles associated with Total Retail Electric Revenues reduced by the amount of DWR Power Sale Revenue (items (1) and (4) above; (6) A debit entry to remove the surcharge revenues equal to the amount recorded in the Catch-Up Surcharge Revenue (CUSR) Memorandum Account (see Preliminary Statement, Part N). (7) A debit or credit entry to remove the baseline allocation-related over-or undercollection equal to the amount recorded in the Baseline Balancing Account (BBA) See Preliminary Statement, Part I; (8) A debit or credit entry to remove the CARE subsidy-related over- or under-collection equal to the amount recorded in the CARE Balancing Account (CBA) (see Preliminary Statement, Part AA). (9) The sum of items (3), (4), (5), (6), (7), and (8) is equal to SCE Retail Electric Revenues. (N) (N) 4H13

15 Southern California Edison Revised Cal. PUC Sheet No E* Rosemead, California Cancelling Revised Cal. PUC Sheet No E TABLE OF CONTENTS Sheet 1 Cal. P.U.C. Sheet No. TITLE PAGE E TABLE OF CONTENTS - RATE SCHEDULES E TABLE OF CONTENTS - LIST OF CONTRACTS AND DEVIATIONS E TABLE OF CONTENTS - RULES E TABLE OF CONTENTS - BASELINE REGIONS E TABLE OF CONTENTS - SAMPLE FORMS E E PRELIMINARY STATEMENT: A. Territory Served E B. Description of Service E C. Procedure to Obtain Service E D. Establishment of Credit and Deposits E E. General E F. Symbols E G. Gross Revenue Sharing Mechanism E E H. Baseline Service E I. Baseline Balancing Account E J. Employee-Related Balancing Account E K. Nuclear Decommissioning Adjustment Mechanism E L. Performance-Based Ratemaking Exclusions Distribution Adjustment Mechanism E M. Income Tax Component of Contributions E N. Memorandum Accounts E E E E E E E E E O. California Alternative Rates for Energy (CARE) Adjustment Clause E P. Optional Pricing Adjustment Clause (OPAC) E 1H6

16 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E TABLE OF CONTENTS Sheet 2 Cal. P.U.C. Sheet No. PRELIMINARY STATEMENT: (Cont'd) Q. Demand Side Management Adjustment Clause (DSMAC) E E R. Historical Procurement Charge Balancing Account E S. Envest SCE Pilot Program Adjustment Mechanism (EPPAM) E E T. Electric and Magnetic Fields Measurement Program E U. Electric Vehicle Adjustment Clause (EVAC) E V. Hazardous Substance Cleanup Cost Recovery Mechanism E E W. Competition Transition Charge Responsibility (CTC) E E X. Research, Development and Demonstration Adjustment Clause (RDDAC) E Y. Economic Development Adjustment Clause (EDAC) E Z. Settlement Rates Balancing Account E AA. California Alternate Rates for Energy (CARE) Balancing Account E BB. Nongeneration Base Rate Adjustment Mechanism (NBRAM) E E CC. Base Rate Performance Mechanism (BRPM) E E DD. Cost Of Capital Trigger Mechanism E EE. Electric Deferred Refund Account (EDRA) E FF. Public Purpose Programs Adjustment Mechanism E GG. Energy Efficiency Program Adjustment Mechanism (EEPAM E HH. Low Income Energy Efficiency Program Adjustment Mechanism (LIEEPAM) E II. PENDING... JJ. PENDING... KK. Emergency Procurement Surcharge Balancing Account (EPSBA) E LL. PENDING... MM. Procurement Related Obligations Account (PROACT) NN. PENDING... -E OO. PENDING... -E PP. PENDING... -E QQ. PENDING... -E RR. PENDING... -E SS. PENDING... -E TT. PENDING... -E UU. Independent System Operator Balancing Account (ISOBA) E VV. Purchased Power Balancing Account (PPBA) E WW.Native Load Balancing Account E E XX. Electric Distribution Revenue Adjustment Balancing Account (EDRABA) E E YY. El Paso Turned-Back Capacity Balancing Account (ETCBA) E (N) 2H7

17 May 25, 2004 California Public Utilities Commission 505 Van Ness Avenue, Room 4005 San Francisco, CA Attn: Jerry Royer Energy Division Re: Substitute Sheet for Advice 1652-E Dear Mr. Royer: Enclosed is an original and six copies of Attachment A and substitute Sheets No E, E, E and E* 1 for Advice 1652-E. These substitute sheets are necessary because Advice 1652-E, Sheet No E was revised and deleted Sections 3.b. and 3.c. However, Sheets 2, 3, and 4 were not included in the original filing and should have been included with the revised sections, due to such deletions. Please replace the enclosed sheets in your master Advice 1652-E file and distribute to the appropriate people reviewing this filing. If you have any questions, please contact Ruby Galvan at (626) Sincerely, Enclosures 1652-ESub.doc 1 Asterisk denotes a substitute sheet.

18 January 21, 2003 California Public Utilities Commission 505 Van Ness Avenue, Room 4005 San Francisco, CA Attn: Jerry Royer Energy Division Re: Substitute Sheets for Various Advice Filings Dear Mr. Royer: Enclosed is an original and six copies of Attachment As (in pertinent part) and substitute tariff sheets as listed for the following Advice filings: Advice 1652-E, Sheet No E* 1 Advice 1662-E, Sheet No E* Advice 1665-E, Sheet No E* Advice 1674-E, Sheet Nos E*, E, and E* These substitute sheets are necessary to ensure that all appropriate, approved revisions are contained in affected tariff sheets. Specifically, updates contained in the substituted tariff sheets are necessary to include tariff language changes authorized by the approval of Advice 1654-E. 2 As a result of including this updated language in the affected tariff sheets in Advice 1674-E, more than one substituted sheet is being submitted due to text relocations occurring from one page to another. Furthermore, Sheet No E* of Advice 1674-E is also updated to include the tariff language resulting from the recent approval of Advice 1665-E. 3 The updates stemming from the approval of Advice 1654-E and affecting the various Advice Letters listed above are for Preliminary Statement, Part Z, Settlement Rates Balancing Account, Section 4.a., and reads as follows: A debit entry to remove the surcharge revenues equal to the amount recorded in the Catch-Up Surcharge Revenue (CUSR) Memorandum Account (See Preliminary Statement, Part N). Please replace the enclosed sheets in the appropriate master advice letter files and distribute any copies to the appropriate personnel. If you have any questions, please contact Dara Morgan at (626) Sincerely, Enclosures VariousAL'ssub2.doc 1 Asterisk denotes a substituted sheet. 2 On November 13, 2002, a letter from the Commission was received confirming the approval of Advice 1654-E effective as of June 6, Renumbering of subsections occurred in Preliminary Statement, Part Z, Section 3, effective January 1, 2003.