2012 ANNUAL REPORT ON HAZARDOUS SUBSTANCE CLEANUP COST RECOVERY MECHANISM SUBMITTED BY:

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2 2012 ANNUAL REPORT ON HAZARDOUS SUBSTANCE CLEANUP COST RECOVERY MECHANISM SUBMITTED BY: SOUTHERN CALIFORNIA EDISON COMPANY IN COMPLIANCE WITH COMMISSION DECISION NO ORDERING PARAGRAPH NO. 4 June 1, 2012

3 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report 1 SOUTHERN CALIFORNIA EDISON COMPANY HAZARDOUS SUBSTANCE CLEANUP COST RECOVERY MECHANISM 2012 ANNUAL REPORT TABLE OF CONTENTS I. INTRODUCTION... 3 II. HAZARDOUS SUBSTANCE CLEANUP COSTS... 5 A. Manufactured Gas Plant (MGP) Project Summaries: Site: Bellflower MGP Site: Colton MGP Site: Corona MGP Site: Long Beach I MGP Site: Long Beach II MGP Site: Long Beach III MGP Site: Monrovia MGP Site: Pomona MGP Site: Redlands II MGP Site: Riverside MGP Site Site: San Bernardino MGP Site: Santa Ana I MGP Site: Santa Ana II MGP Site: Santa Barbara I MGP Site: Santa Barbara II MGP Site: San Pedro MGP Site: Santa Monica MGP Site: Venice MGP Site: Ventura MGP Site: Whittier MGP... 9 B. Federal Superfund Site Project Summaries: Site: Operating Industries, Inc Site: Stringfellow Site: Visalia Pole Yard... 9 C. Other Site Project Summaries: Site: Alamitos Generating Station Site: Alhambra Combined Facility Site: Ascon Landfill Site: BKK Landfill Facility Site: Cameron-Yakima Site: Casmalia Disposal Site: Cool Water Generating Station Site: Cooper Drum Site: Eastside Disposal Facility Site: El Segundo Generating Station... 12

4 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report Site: Etiwanda Generating Station Site: Fuel Oil Pipeline and Storage System Site: General Office Complex Site: Gibson Environmental Site: Highgrove Generating Station Site: Huntington Beach Generating Station Site: Jack Engle & Company Site: Lafayette Site Site: Long Beach Generating Station Site: Mandalay Generating Station Site: Mercury Refining Company Site: Mobil Smelting Site: Omega Chemical Site: Ormond Beach Generating Station Site: Pebbly Beach Generating Station Site: Quicksilver Products Inc Site: Redondo Generating Station Site: Rosen s Electrical Equipment Site: San Bernardino Generating Station Site: SCE Pole and Cribwall Firewrap Removal Site: Walker Property Facility III. HAZARDOUS SUBSTANCE THIRD-PARTY AND INSURANCE LITIGATION COSTS IV. HAZARDOUS SUBSTANCE THIRD-PARTY AND INSURANCE RECOVERIES V. DISPOSITION OF THE HAZARDOUS SUBSTANCE CLEANUP AND LITIGATION COST (HSCLC) BALANCING ACCOUNT BALANCE Table I: Hazardous Substance Cleanup and Litigation Cost Balancing Account Appendix A: Miscellaneous Tracking Account Schedules Appendix B: Certificate of Service

5 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report 3 I. INTRODUCTION Pursuant to Decision No. (D.) , dated May 4, 1994, Southern California Edison Company (SCE) hereby files its 2012 Annual Report to the California Public Utilities Commission (Commission) on Hazardous Substance Cleanup Cost Recovery Mechanism activities. Decision No adopts the methodology for allocating costs and related recoveries associated with cleaning up certain properties contaminated with hazardous substances between SCE ratepayers and shareholders. Under the Hazardous Substance Cleanup Cost Recovery Mechanism, SCE will recover the following from its ratepayers without reasonableness review: (1) 90 percent of Covered Hazardous Substance Cleanup Costs; (2) 70 percent of Covered Insurance Litigation Costs; and (3) 90 percent of Covered Third-Party Litigation Costs. The remainder of these costs is the responsibility of SCE s shareholders. The shareholders cost responsibility, along with the opportunity to recover these costs through successful insurance and third-party recoveries, provide SCE an appropriate incentive to costeffectively fulfill its obligations for addressing its hazardous substance cleanup efforts as required by law. The 2012 Annual Report provides the Commission a record of costs recorded in the Hazardous Substance Cleanup and Litigation Cost Balancing Account during the period April 1, 2011 through March 31, SCE will continue to record costs incurred after this date in the Hazardous Substance Cleanup Cost Recovery Mechanism. These costs will be included in the 2013 Annual Report to the Commission covering the period April 1, 2012 through March 31, Pursuant to D , SCE s Annual Report is to be filed with the Commission by June 1 of each year and should include the following information for the reporting period: (1) The name of each Site for which costs were incurred; (2) The location of each Site; (3) The amount of Covered Hazardous Substance Costs incurred for each Site; (4) The amount of Internal Hazardous Substance Costs included within these costs, if any; (5) The total Covered Third-Party Litigation Costs and Covered Insurance Litigation Costs incurred for all Sites; and (6) The Amount of Covered Third-Party Recoveries and Covered Insurance Recoveries obtained for all Sites. 1 The report also describes the costs so that the Energy Division can determine whether the costs have been properly accounted for by SCE, and whether reported Internal Hazardous Substance Cleanup Costs are already being recovered in rates. This 2012 Annual Report is being served upon each of the parties to Application No A total of $7,132, in Hazardous Substance Cleanup Costs was eligible for inclusion in the Hazardous Substance Cleanup Mechanism during the period April 1, 2011 through March 31, Ninety percent of this amount may be recovered from customers under the balancing account mechanism. of the costs 1 Per Appendix A, VII.B.5. of Decision No

6 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report 4 described in this report and recorded in the Hazardous Substance Cleanup Mechanism are Internal Hazardous Substance Cleanup Costs. Hazardous Substance Cleanup Costs are addressed in Section II. Hazardous Substance Third-Party and Insurance Litigation Costs are addressed in Section III. Insurance Litigation costs incurred during this period were $0 (See Appendix A). Hazardous Substance Third-Party and Insurance Recoveries are addressed in Section IV. Total recoveries net of insurance litigation costs during this period were $0 (See Appendix A). The amount transferred from the Covered Insurance Recoveries Tracking Account to ratepayers through the Hazardous Substance Cleanup and Litigation Cost Balancing Account totaled $0 (See Table I).

7 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report 5 II. HAZARDOUS SUBSTANCE CLEANUP COSTS The following section identifies the name and the location of all sites included in the Hazardous Substance Cleanup Cost Recovery Mechanism as of March 31, 2012, and one hundred percent of the Covered Hazardous Substance Cleanup Costs incurred at each of the following sites during the reporting period April 1, 2011 through March 31, SCE is providing this information for all sites for which it has current authorization under D , even if no costs have been incurred. During the period covered in this report, the SCE sites were grouped into three categories: (A) Manufactured Gas Plant (MGP) Sites; (B) Federal Superfund Sites; and (C) Other Sites. A. Manufactured Gas Plant (MGP) Project Summaries 2 : 1. Site: Bellflower MGP Bellflower, California 2. Site: Colton MGP Colton, California Recorded Expenses: $9, Agency oversight a. Department of Toxic Substances Control (DTSC Oversight Costs) $ 9, TOTAL $ 9, Site: Corona MGP Corona, California Recorded Expenses: $35, Remediation/clean-up/monitoring/reporting a. DTSC Oversight Costs $ 3, b. Reyn Group Corp (Remediation Consultant) 32, TOTAL $ 35, SCE has entered into agreements with Sempra (the Southern California Gas Company) to initially share the costs of remediation of former manufactured gas plant sites on a 50/50 percent basis. Both SCE and Sempra have mutual involvement through ownership and/or operation of these facilities. Reimbursements by either company under the provisions of these agreements are duly noted for each MGP site where appropriate.

8 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report 6 4. Site: Long Beach I MGP Long Beach, California 5. Site: Long Beach II MGP Long Beach, California 6. Site: Long Beach III MGP Long Beach, California 7. Site: Monrovia MGP Monrovia, California Recorded Expenses: $6, Remediation/Monitoring a. Sempra (Reimbursement of Sempra Remediation Costs) $ 6, TOTAL $ 6, Site: Pomona MGP Pomona, California 9. Site: Redlands II MGP Redlands, California Recorded Expenses: $3, Remediation long term monitoring oversight a. DTSC Oversight Costs $ 3, TOTAL $ 3,418.68

9 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report Site: Riverside MGP Site Riverside, California Recorded Expenses: $1,074, Remediation/Clean-up/reporting/oversight a. Sempra (Reimbursement of Sempra Remediation Costs) $ 1,074, TOTAL $ 1,074, Site: San Bernardino MGP San Bernardino, California Recorded Expenses: $7, Remediation/monitoring/reporting a. Sempra (Reimbursement of Sempra Remediation Costs) $ 7, TOTAL $ 7, Site: Santa Ana I MGP Santa Ana, California Recorded Expenses: $2, Remedial Investigation/Actions a. Sempra (Reimbursement of Sempra Remediation Costs) $ 2, TOTAL $ 2, Site: Santa Ana II MGP Santa Ana, California Recorded Expenses: $41, Remediation/monitoring/reporting a. Sempra (Reimbursement of Sempra Remediation Costs) $ 41, TOTAL $ 41,677.00

10 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report Site: Santa Barbara I MGP Santa Barbara, California Recorded Expenses: $125, Remediation completion actions and long term monitoring a. Calscience Environmental Laboratory (Sample Analyses) $ 8, b. DTSC Oversight Costs c. Santa Barbara County Fire Dept d. URS Corporation (Remedial Contractor) 44, e. Cogstone Resource Management Inc. (Cultural Resource Consultant) 49, f. Lynx Property Management Inc. 5, g. Western Science Center 16, TOTAL $ 125, Site: Santa Barbara II MGP Santa Barbara, California Recorded Expenses: $7, Remediation Activities a. Sempra (Reimbursement of Sempra Remediation Costs) $ 7, TOTAL $ 7, Site: San Pedro MGP San Pedro, California 17. Site: Santa Monica MGP Santa Monica, California 18. Site: Venice MGP Venice, California Activities 19. Site: Ventura MGP Ventura, California Recorded Expenses: $2,589, Remediation/Waste disposal/reporting/monitoring a. Sempra (Reimbursement of Sempra Remediation Costs) $ 2,589, TOTAL $ 2,589,467.29

11 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report Site: Whittier MGP Whittier, California Recorded $15, O & M (Groundwater Monitoring)/Agency oversight a. Sempra (Reimbursement of Sempra Remediation Costs) $ 15, TOTAL $ 15, B. Federal Superfund Site Project Summaries: 1. Site: Operating Industries, Inc. Monterey Park, California 2. Site: Stringfellow Riverside, California 3. Site: Visalia Pole Yard Visalia, California Recorded Expenses: $13, Post-closure O&M a. California Water Service Company (Utilities) $ 1, b. DTSC Oversight Costs 2, c. Kaweah Pump Inc. (Agency-required Well Abandonment) 8, d. The Plumbing Company (Utilities O&M) TOTAL $ 13,307.90

12 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report 10 C. Other Site Project Summaries: 1. Site: Alamitos Generating Station Long Beach, California Recorded Expenses: $197, Closure Plan Preparation, Retention Basin Investigation, and Groundwater Monitoring a. Public Notice Advertisement (Public Participation) $ b. Copying & Printing (Public Participation and Report Copying) c. Jamison & Associates, Inc. (Closure Plan Consultant) 41, d. Patrick Hamilton (Site Investigation/Groundwater Monitoring Consultant) 49, e. Weck Laboratories (Soil/Water Analysis) 92, f. DTSC Oversight 7, g. Martin F. Prisco (Public Participation Consultant) 4, TOTAL $ 197, Site: Alhambra Combined Facility Alhambra, California Recorded Expenses: $497, Site Investigation and Remediation a. Calscience Environmental Laboratory (Sample Analyses) $ 3, b. Clean Harbors Environmental (Hazardous Waste 357, Transport/Disposal) c. DTSC Oversight Costs 3, d. MWH Americas (Remediation Consultant) 51, e. The Source Group (VOC Conceptual Site Model) 81, TOTAL $ 497, Site: Ascon Landfill Huntington Beach, California Recorded Expenses: $87, Participation as a PRP in State Superfund Investigation & Remediation a. Ascon Remediation Fund $ 87, TOTAL $ 87,808.78

13 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report Site: BKK Landfill Facility West Covina, California Recorded Expenses: $426, Landfill O&M and Remediation a. Bingham McCutchen Client Trust Account (Legal and Post- Closure O&M Expenses) $ 426, TOTAL $ 426, Site: Cameron-Yakima Yakima, Washington 6. Site: Casmalia Disposal Santa Barbara County, California 7. Site: Cool Water Generating Station Daggett, California Recorded Expenses: $41, RCRA Facility Investigation a. Calscience Environmental Laboratory (Soil/Water Analyses) $ 18, b. Environmental Applications (RFI Consultant) 20, c. Saddleback Surveys (Site Surveying Services) $ 3, TOTAL $ 41, Site: Cooper Drum South Gate, California Recorded Expenses: $68, Legal Representation/Settlement Negotiations a. Cooper Drum Cooperating Parties Group (Shared Legal and Settlement Costs) $ 68, TOTAL $ 68,469.73

14 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report Site: Eastside Disposal Facility Bakersfield, California 10. Site: El Segundo Generating Station El Segundo, California Recorded Expenses: $59, Closure Plan, Retention Basin Investigation and Groundwater Monitoring a. DTSC Oversight Costs $ 5, b. Jamison & Associates (Closure Plan Consultant) c. Patrick Hamilton (Soil Investigation/Groundwater Monitoring Consultant) 19, d. Weck Laboratories (Soil/Water Analyses) 33, e. Copying & Printing (Groundwater Monitoring Reports) TOTAL $ 59, Site: Etiwanda Generating Station Etiwanda, California Recorded Expenses: $114, Closure Demonstration Report Preparation, Site Closure Cleanup, and Groundwater Monitoring a. DTSC Oversight Costs $ 27, b. Adams Services, Inc. (Cleanup Contractor) 3, c. Patrick Hamilton (Soil Investigation/Groundwater Monitoring Consultant) 20, d. Martin F. Prisco (Public Participation Consultant) 1, e. Copying & Printing (Public Participation and Report Copying) f. Clean Harbors Environmental (Cleanup Contractor) 13, g. Public Notice Advertisement (Public Participation) h. Weck Laboratories (Soil/Water Analysis) 29, i. Jamison & Associates, Inc. (Closure Demonstration Report 16, Consultant) TOTAL $ 114, Site: Fuel Oil Pipeline and Storage System Various

15 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report Site: General Office Complex Rosemead, California Recorded Expenses: $2, Administration and Settlement Costs a. State Water Resources Control Board Oversight $ 2, TOTAL $ 2, Site: Gibson Environmental Bakersfield, California 15. Site: Highgrove Generating Station Grand Terrace, California Recorded Expenses: $1, RCRA Facility Investigation and Site Closure a. Copying & Printing (Report Copies) $ b. Martin F. Prisco (Public Participation Consultant) 1, TOTAL $ 1, Site: Huntington Beach Generating Station Huntington Beach, California Recorded Expenses: $58, Groundwater Monitoring a. Patrick Hamilton (Soil Investigation/Groundwater Monitoring $ 15, Consultant) b. Weck Laboratories (Soil/Water Analysis) 43, c. Copying & Printing (Groundwater Monitoring Report Copies) TOTAL $ 58, Site: Jack Engle & Company South Gate, California

16 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report Site: Lafayette Site Costa Mesa, California Recorded Expenses: $37, Preliminary Site Assessment a. Rubicon - Consultant for Initial Investigations 26, b. Calscience Environmental Laboratory (Sample Analyses) 10, TOTAL $ 37, Site: Long Beach Generating Station Long Beach, California Recorded Expenses: $51.71 Document Copying a. Copying & Printing (Report Copies) $ TOTAL $ Site: Mandalay Generating Station Oxnard, California Recorded Expenses: $1,258, Soil Remediation and Retention Basin Groundwater Monitoring a. DTSC Oversight Costs $ 5, b. ETIC (Soil Remediation Contractor) 992, c. Dudek (Biological Monitoring) d. Lopez & Associates Engineers (Remediation Project 149, Management) e. LSA Associates Inc. (Archaeological Monitoring) 3, f. RBF Consulting (Stormwater Permitting Consultant) g. Jamison & Associates (Closure Plan Preparation/Remediation 27, Consultant) h. Patrick Hamilton (Soil Investigation/Groundwater Monitoring Consultant) 24, i. Saddleback Surveys (Remediation Support Surveying Services) 10, j. U D S Enterprises Inc. (Remediation Project Management) k. Weck Laboratories (Soil/Water Analyses) 43, l. Copying & Printing (Report Copies) TOTAL $ 1,258, Site: Mercury Refining Company Albany, New York

17 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report Site: Mobil Smelting Mojave, California 23. Site: Omega Chemical Whittier, California 24. Site: Ormond Beach Generating Station Oxnard, California Recorded Expenses: $255, Groundwater Remediation and Retention Basin Groundwater Monitoring a. DTSC Oversight Costs $ b. Patrick Hamilton (Soil Investigation/Groundwater Monitoring /Remediation System O&M and Monitoring Consultant) 98, c. Weck Laboratories (Soil/Water Analyses) 85, d. Diener s Electric, Inc. (Groundwater Remediation System O&M) e. C.D. Lyon Construction, Inc. (Groundwater Remediation System O&M) 8, f. Pure Effect Inc. (Groundwater Remediation Equipment and O&M)) 16, g. State Water Resources Control Board (Permit Fees) 6, h. Travis Agricultural Construction (Groundwater Remediation 1, System O&M) i. Geophysical Survey (Groundwater Remediation System 1, O&M) j. Groundwater Remediation System Supplies (O&M) 1, k. Jamison & Associates, Inc. (Closure Plan 22, Implementation/Risk Assessment Consultant) l. Saddleback Surveys (Site Remediation Surveying Support) 12, m. Misc. Supplies (Safety Ladder, Memory Card) n. Copying & Printing (Report Copies) TOTAL $ 255,413.07

18 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report Site: Pebbly Beach Generating Station Avalon, California Recorded Expenses: $68, Remediation/monitoring/reporting/waste disposal a. Calscience Environmental Laboratory (Sample Analyses) $ 10, b. WorleyParsons Komex (Groundwater Sampling and Oil Recovery) 57, TOTAL $ 68, Site: Quicksilver Products Inc. Brisbane, California 27. Site: Redondo Generating Station Redondo Beach, California 28. Site: Rosen s Electrical Equipment Pico Rivera, California 29. Site: San Bernardino Generating Station San Bernardino, California Recorded Expenses: $23, RCRA Facility Investigation & Site Closure a. DTSC Oversight Costs $ 13, b. Environmental Applications (Soil Investigation Consultant) 9, c. Martin F. Prisco (Public Participation Consultant) TOTAL $ 23, Site: SCE Pole and Cribwall Firewrap Removal Various

19 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report Site: Walker Property Facility Santa Fe Springs, California

20 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report 18 III. HAZARDOUS SUBSTANCE THIRD-PARTY AND INSURANCE LITIGATION COSTS In 1994, SCE initiated insurance recovery litigation against several insurance carriers. Insurance litigation costs incurred in 1994 were determined to be included in base rates as part of SCE s 1992 General Rate Case (GRC). SCE s 1995 GRC revenue requirement authorization did not include any cost for this type of property insurance litigation. Thus, insurance recovery costs incurred after January 1, 1995, the effective date of the 1995 GRC revenue requirement, are not covered through SCE s base rates. Rather, they are considered Covered Insurance Litigation Costs and are subject to the Hazardous Substance Cleanup Cost Recovery Mechanism. From April 1, 2011, through March 31, 2012, Insurance Litigation Costs incurred were $0. No litigation has been pursued against other third-parties for the sites covered in this report.

21 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report 19 IV. HAZARDOUS SUBSTANCE THIRD-PARTY AND INSURANCE RECOVERIES As a result of the insurance litigation effort identified in Section III of this report, as of March 31, 2012, SCE s insurance recovery was $27,313, This includes all recoveries during the reporting periods from 1995 through 2012, inclusive. No disclosures were made during the 1995 period because disclosure would have compromised the ongoing settlement negotiations with other defendants (Exhibit A, 1995 Annual Report). The insurance recoveries covered a number of sites, most of which were covered sites included in the Hazardous Substance Cleanup Cost Recovery Mechanism. The insurance recoveries shall be allocated as follows: Reporting Year Insurance Recoveries Shareholder Allocation Ratepayer Allocation Remaining Balance $ 17,546,770 $ 2,525,363 $ 1,540,442 $ 13,708, $ 5,122,553 $ 878,839 $ 489,649 $ 18,339, $ 2,707,077 $ 825,286 $ 91,884 $ 21,337, $ 1,530,000 $ 961,694 $ 106,854 $ 22,951, $ 0 $ 822,458 $ 91,384 $ 23,271, $ 0 $ 2,399,623 $ 1,493,264 $ 20,823, $ 0 $ 3,002,095 $ 2,283,938 $ 16,150, $ 0 $ 3,495,834 $ 2,146,897 $ 10,744, $ 0 $ 2,537,781 $ 1,822,653 $ 6,491, $ 342,724 $ 1,886,869 $ 1,423,408 $ 3,626, $ 19,748 $ 1,465,865 $ 669,971 $ 1,623, $ 32,847 $ 1,092,023 $ 148,657 $ 472, $ 0 $ 431,795 $ 47,977 $ $ 6,760 $ 5,070 $ 1,690 $ $ 4,624 $ 3,468 $ 1,156 $ $ 0 $ 0 $ 0 $ $ 0 $ 0 $ 0 $ 0 Pursuant to the Hazardous Substance Cleanup Cost Recovery Mechanism, upon receipt of an insurance recovery the ratepayers and shareholders must be reimbursed for their respective shares of the Covered Insurance Litigation Costs (ratepayers 70% and shareholders 30%). Following the full reimbursement for Covered Insurance Litigation Costs, the ratepayers shall receive 10% and the shareholders 90% of their respective shares of Cleanup Costs. SCE received $0 in insurance recoveries in the 2012 reporting period. The $0 represents the 2012 shareholders 30% share of Covered Insurance Litigation Costs, 90% share of Cleanup Costs, and the disposition of Covered Insurance Recoveries remaining after more than five calendar years. The $0 represents the 2012 ratepayers 70% share of Covered Insurance Litigation Costs, 10% share of Cleanup Costs, and the dispersion of Covered Insurance Recoveries remaining after more than five calendar years. There remains no balance as of the end of this reporting period. 3 This amount reflects total insurance recoveries net of legal fees, disbursements, and allocations to non-covered Sites. 4 The remaining balance already includes interest (see Appendix A-1). 5 This amount includes $8,861 insurance recovered during the period (including interest). 6 Please see Appendix A for detailed tables.

22 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report 20 As noted in Section III, SCE has not pursued third-party litigation for sites covered in this report. SCE has entered into agreements with The Gas Company (Sempra) to initially share costs for remediation of former manufactured gas plants on a 50/50 percent basis. Both companies have mutual involvement through ownership and/or operation of these facilities. Reimbursements by either company under the provisions of these agreements are duly noted in the recorded expenses described in detail in Section II.

23 Hazardous Substance Cleanup Cost Recovery Mechanism 2012 Annual Report 21 V. DISPOSITION OF THE HAZARDOUS SUBSTANCE CLEANUP AND LITIGATION COST (HSCLC) BALANCING ACCOUNT BALANCE In D , the Commission authorized the establishment of the HSCLC Balancing Account. This mechanism records the ratepayer share of costs and related recoveries associated with hazardous waste projects. As authorized by D , SCE will transfer the appropriate portion of costs described in this report as recorded in the HSCLC Balancing Account to the appropriate ratemaking mechanism, which is currently the distribution sub-account of the Base Revenue Requirement Balancing Account (BRRBA), 91 days after the filing date of this report. 7 Amounts recorded in the distribution sub-account of the BRRBA are recovered through distribution rate levels upon Commission approval. Thus, as shown on Table I, the estimated August 31, 2012, balance in the HSCLC that will be transferred to the BRRBA is $6.437 million. 8 7 The amount transferred to the BRRBA will be the balance of the HSCLC Balancing Account as of March 31, 2012, plus interest of that balance through August 31, As shown on Table I, in the Adjustment column, SCE transferred $9.506 million to BRRBA in September This amount was included in SCE s 2011 Annual Report. 8 The three-month commercial paper interest rate has been estimated for the months of May through August The final amount transferred to the BRRBA will reflect recorded interest rates as appropriate.

24 Hazardous Substance Clean Up Cost Recovery Mechanism 2012 Annual Report Table I - HAZARDOUS SUBSTANCE CLEANUP AND LITIGATION COST BALANCING ACCOUNT (As of March 31, 2012) (See separate Excel file tables)

25 Table I Southern California Edison Company Hazardous Substance Cleanup Cost Recovery Mechanism Hazardous Substance Cleanup and Litigation Cost (HSCLC) Balancing Account Less Total 90% of Collaborative 70% of Covered Total CPUC CPUC Less Beginning Cleanup Cleanup Litigation Litigation Insurance Recoverable Jurisdictional Jurisdictional Revenue Under/(Over) Average Interest Monthly Ending Balance Adjustments Costs Costs Costs Costs Recoveries Costs Factor Costs Requirement Collection Balance Rate * Interest Balance Apr-11 $ 9,498,967 $ - $ 205,004 $ 184,504 $ - $ - $ - $ 184, % $ 184,504 $ - $ 184,504 $ 9,591, % $ 1,838 $ 9,685,309 May-11 9,685, , , , % 115, ,439 9,743, % 1,624 9,802,372 Jun-11 9,802, , , , % 164, ,956 9,884, % 1,318 9,968,646 Jul-11 9,968, , , , % 800, ,468 10,368, % 1,296 10,770,410 Aug-11 10,770,410-60,462 54, , % 54,416-54,416 10,797, % 1,260 10,826,086 Sep-11 10,826,086 (9,505,936) 152, , , % 137, ,634 1,388, % 185 1,457,969 Oct-11 1,457, , , , % 105, ,638 1,510, % 176 1,563,783 Nov-11 1,563, , , , % 103, ,355 1,615, % 202 1,667,340 Dec-11 1,667,340-4,274,623 3,847, ,847, % 3,847,160-3,847,160 3,590, % 419 5,514,919 Jan-12 5,514, , , , % 261, ,479 5,645, % 659 5,777,057 Feb-12 5,777, , , , % 336, ,519 5,945, % 694 6,114,270 Mar-12 6,114, , , , % 307, ,565 6,268, % 888 6,422,723 Apr-12 6,422, % ,422, % 963 6,423,686 May-12 6,423, % ,423, % 1,071 6,424,757 Jun-12 6,424, % ,424, % 1,071 6,425,828 Jul-12 6,425, % ,425, % 1,178 6,427,006 Aug-12 6,427, % ,427, % 1,178 6,428,184 Total $ 9,498,967 $ (9,505,936) $ 7,132,371 $ 6,419,133 $ - $ - $ - $ 6,419,133 $ 6,419,133 $ - $ 6,419,133 $ 16,020 $ 6,428,184 * Interest rates for May 2012 through August 2012 are estimated

26 Hazardous Substance Clean Up Cost Recovery Mechanism 2012 Annual Report APPENDIX A

27 Appendix A Southern California Edison Company Hazardous Substance Cleanup Cost Recovery Mechanism Covered Insurance Recoveries (CIR) Tracking Account Transfer Transfer Transfer Covered to the SILC to the SCC to the HSCLC Current Beginning Insurance Tracking Tracking Balancing Month Average Interest Monthly Ending Balance Adjustments Recoveries Account Account Account Activity Balance Rate Interest Balance Apr-11 $ - $ - $ - $ - $ - $ - $ - $ % $ - $ - May % - - Jun % - - Jul % - - Aug % - - Sep % - - Oct % - - Nov % - - Dec % - - Jan % - - Feb % - - Mar % - - Total $ - $ - $ - $ - $ - $ - $ - $ - $ - A-1

28 Hazardous Substance Cleanup Cost Recovery Mechanism Shareholder Insurance Litigation Cost (SILC) Tracking Account Less Shareholders' Collaborative 30% of Covered Total CPUC CPUC Beginning Litigation Litigation Insurance Shareholders' Jurisdictional Jurisdictional Average Interest Monthly Ending Balance Adjustments Costs Costs Recoveries Costs Factor Costs Balance Rate Interest Balance Apr-11 $ - $ - $ - $ - $ - $ % $ - $ % $ - $ - May % % - - Jun % % - - Jul % % - - Aug % % - - Sep % % - - Oct % % - - Nov % % - - Dec % % - - Jan % % - - Feb % % - - Mar % % - - Total $ - $ - $ - $ - $ - $ - $ - $ - $ - A-2

29 Hazardous Substance Cleanup Cost Recovery Mechanism Shareholder Cleanup Cost (SCC) Tracking Account Less Shareholders' Total 10% of Covered Total CPUC CPUC Beginning Cleanup Cleanup Insurance Shareholders' Jurisdictional Jurisdictional Average Interest Monthly Ending Balance Adjustments Costs Costs Recoveries Costs Factor Costs Balance Rate Interest Balance Apr-11 $ 2,490,401 $ - $ 205,004 $ 20,500 $ - $ 20, % $ 20,500 $ 2,500, % $ 479 $ 2,511,380 May-11 2,511, ,266 12,827-12, % 12,827 2,517, % 420 2,524,627 Jun-11 2,524, ,284 18,328-18, % 18,328 2,533, % 338 2,543,293 Jul-11 2,543, ,409 88,941-88, % 88,941 2,587, % 323 2,632,557 Aug-11 2,632,557-60,462 6,046-6, % 6,046 2,635, % 307 2,638,910 Sep-11 2,638, ,926 15,293-15, % 15,293 2,646, % 353 2,654,556 Oct-11 2,654, ,376 11,738-11, % 11,738 2,660, % 310 2,666,604 Nov-11 2,666, ,839 11,484-11, % 11,484 2,672, % 334 2,678,422 Dec-11 2,678,422-4,274, , , % 427,462 2,892, % 337 3,106,221 Jan-12 3,106, ,533 29,053-29, % 29,053 3,120, % 364 3,135,638 Feb-12 3,135, ,910 37,391-37, % 37,391 3,154, % 368 3,173,397 Mar-12 3,173, ,739 34,174-34, % 34,174 3,190, % 452 3,208,023 Total $ 2,490,401 $ - $ 7,132,371 $ 713,237 $ - $ 713,237 $ 713,237 $ 4,385 $ 3,208,023 A-3

30 Hazardous Substance Clean Up Cost Recovery Mechanism 2012 Annual Report APPENDIX B

31 Hazardous Substance Clean Up Cost Recovery Mechanism 2012 Annual Report CERTIFICATE OF SERVICE I hereby certify that, pursuant to the Commission s Rules of Practice and Procedure, I have this day served a true copy of SOUTHERN CALIFORNIA EDISON COMPANY HAZARDOUS SUBSTANCE CLEANUP COST RECOVERY MECHANISM 2012 ANNUAL REPORT on all parties identified on the attached service list(s). Service was effected by one or more means indicated below: Transmitting the copies via to all parties who have provided an address. First class mail will be used if electronic service cannot be effectuated. Executed this 1st day of June, 2012, at Rosemead, California. /S/ Cecilia R. Jones Cecilia R. Jones, Project Analyst SOUTHERN CALIFORNIA EDISON COMPANY Post Office Box Walnut Grove Avenue Rosemead California 91770