July 31, 2001 PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION

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2 Akbar Jazayeri Director of Revenue and Tariffs July 31, 2001 ADVICE 1567-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Addition of the Gibson Environmental, Inc., and Southern California Edison General Office Complex Sites to the Hazardous Substance Cleanup Cost Recovery Mechanism In compliance with Decision (D ), dated May 4, 1994, 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 revises SCE s Preliminary Statement, Part V, Hazardous Substance Cleanup Cost Recovery Mechanism (Mechanism), to add the Gibson Environmental, Inc., and Southern California Edison General Office Complex to the list of sites listed in Section 2.d within Table A of the tariff. INFORMATION D , among other things, authorized SCE to establish a mechanism relating to hazardous substance cleanup costs. On June 8, 1994, SCE filed Advice 1055-E-A, to establish Preliminary Statement, Part V, Hazardous Substance Cleanup Cost Recovery Mechanism. In D , the Commission established the Hazardous Substance Cost Recovery Mechanism which provided a methodology for allocating costs and related recoveries between SCE s ratepayers and shareholders associated with the cleanup of certain properties contaminated with hazardous substances. This methodology allowed 90% of the cleanup costs to be assigned to utility ratepayers and 10% of the cleanup costs to be assigned to utility shareholders. P.O. Box Walnut Grove Ave. Rosemead, California (626) Fax (626)

3 ADVICE 1567-E (U 338-E) July 31, 2001 SCE has the option to add additional sites to the Mechanism under terms of the Hazardous Substance Cleanup Cost Recovery Collaborative Report submitted in response to Decision and the associated Settlement Agreement (Collaborative Settlement Agreement) adopted by the Commission in D The Collaborative Settlement Agreement requires that the following information be provided to the Commission in order to include an additional site in the Mechanism: (1) the name of the site; (2) the location of the site; (3) the source, nature, and approximate date of the contamination; (4) utility operations (historical and current) at the site, if any; and (5) environmental agency actions and oversight regarding the site, if any. Attachment B contains the relevant information for the Gibson Environmental, Inc., and Southern California Edison General Office Complex Sites. In addition, Decision , dated July 3, 1996, requires that a utility seeking recovery of hazardous waste cleanup costs through an advice letter filing demonstrate that: (1) cleanup costs for which recovery is being sought are not being recovered through base rates or through any other recovery procedure; and (2) all of the costs for which recovery is being sought are hazardous waste cleanup costs (including insurance litigation costs) found appropriate for recovery in the Collaborative Report. SCE s current rate levels as adopted in recent regulatory proceedings, such as the General Rate Case and Performance Based Ratemaking proceedings, do not include recovery for hazardous substance cleanup costs and related insurance litigation costs associated with Gibson Environmental, Inc., and Southern California Edison General Office Complex Sites identified in this advice filing. Instead, these costs, net of applicable insurance recoveries, will be recovered pursuant to the Mechanism. The Mechanism provides a methodology for allocating, between SCE s ratepayers and shareholders, costs and related recoveries associated with the cleanup of hazardous substances at contaminated covered properties. Upon the effective date of this advice filing, the hazardous substance cleanup costs, insurance litigation costs, and insurance recoveries associated with the Gibson Environmental, Inc., and Southern California Edison General Office Complex Sites will be accounted for using unique accounting codes which distinguish them from other routine operation and maintenance expenses and insurance receipts. Costs and recoveries recorded under these unique accounting codes will be reviewed internally by SCE on a monthly basis to ensure that they are appropriate for inclusion in the Mechanism, as defined on pages 4-7 of Appendix A in D , and are related to covered sites. These accounting procedures ensure that cleanup costs are captured correctly in the Mechanism and that these costs are not included for recovery in other regulatory proceedings. D requires that costs and recoveries recorded under the Mechanism be reported to the Commission annually.

4 ADVICE 1567-E (U 338-E) July 31, 2001 No cost information is required for this advice filing. This advice filing will not increase or decrease any rate or charge, cause the withdrawal of service, or conflict with any rate schedule or rule. EFFECTIVE DATE In compliance with the Collaborative Settlement Agreement, this advice filing will become effective on the 40 th calendar day after the date filed, which is September 9, NOTICE Anyone wishing to protest this advice filing may do so by letter which must be received by 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 505 Van Ness Avenue, Room 4002 San Francisco, California Facsimile: (415) Copies should also be sent 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 to the attention of: Akbar Jazayeri Director of Revenue and Tariffs Southern California Edison Company 2244 Walnut Grove Avenue, Rm. 303 Rosemead, California Facsimile: (626) lawlerem@sce.com Bruce Foster Vice President of Regulatory Operations Southern California Edison Company 601 Van Ness Avenue, Suite 2040 San Francisco, California Facsimile: (415) fosterbc@sce.com

5 ADVICE 1567-E (U 338-E) July 31, 2001 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 mailing copies of this advice filing to the interested parties shown on the attached service list. 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. 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. For questions, please contact Bill Ostrander at (626) or by electronic mail at ostranwr@sce.com. Southern California Edison Company AJ:pf/eml Enclosures Akbar Jazayeri

6 Public Utilities Commission 1567-E Attachment A Cal. P.U.C. Sheet No. Title of Sheet Cancelling Cal. P.U.C. Sheet No. Revised E Preliminary Statement Part V Revised E 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 PRELIMINARY STATEMENT Sheet 4 (Continued) V. Hazardous Substance Cleanup Cost Recovery Mechanism. (Continued) 2. Definitions. (Continued) d. Covered Sites: (Continued) Table A Authorized Covered Sites (Continued) Covered Site Authorization Other Sites: (Continued) Rosen's Electrical Equipment Company Adv. Ltr E Alamitos Generating Station D /Adv Ltr E Cool Water Generating Station D /Adv Ltr E El Segundo Generating Station D /Adv Ltr E Etiwanda Generating Station D /Adv Ltr E Huntington Beach Generating Station D /Adv Ltr E Highgrove Generating Station D /Adv Ltr E Long Beach Generating Station D /Adv Ltr E Mandalay Generating Station D /Adv Ltr E Ormond Beach Generating Station D /Adv Ltr E Redondo Generating Station D /Adv Ltr E San Bernardino Generating Station D /Adv Ltr E Alhambra Combined Facility D /Adv Ltr E Ascon Landfill D /Adv Ltr E Cameron-Yakima D /Adv Ltr E Mobil Smelting D /Adv Ltr E Omega Chemical D /Adv Ltr E Walker Properties D /Adv Ltr E Fuel Oil Pipeline & Storage System D /Adv Ltr E Quicksilver Products, Inc. D /Adv Ltr E Jack Engle & Company D /Adv Ltr E Pole and Cribwall Firewrap Removal D /Adv Ltr E Gibson Environmental, Inc. D /Adv Ltr E Southern California Edison General Office Complex D /Adv Ltr E (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1567-E John R. Fielder Date Filed Jul 31, 2001 Decision Senior Vice President Effective Sep 9, H10 Resolution

8 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E 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. NOT IN USE... J. NOT IN USE... K. NOT IN USE... L. NOT IN USE... M. Income Tax Component of Contributions E N. Memorandum Accounts E E E E E E E E NotUsed-NotUsed-NotUsed-NotUsed E O. California Alternative Rates for Energy (CARE) Adjustment Clause E P. Optional Pricing Adjustment Clause (OPAC) E (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1567-E John R. Fielder Date Filed Jul 31, 2001 Decision Senior Vice President Effective Sep 9, H12 Resolution

9 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E E TABLE OF CONTENTS Sheet 2 (Continued) Cal. P.U.C. Sheet No. PRELIMINARY STATEMENT: (Cont'd) Q. Demand Side Management Adjustment Clause (DSMAC) E E R. Transition Revenue Account (TRA) 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. NOT IN USE... AA. BB. Demand Reduction and Self-Generation Program Incremental Cost (DRSGPIC) E 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. NOT IN USE... GG. Energy Efficiency Program Adjustment Mechanism (EEPAM E HH. Low Income Energy Efficiency Program Adjustment Mechanism (LIEEPAM) E II. Public Purpose Adjustment Mechanism (PPAM) E JJ. Transition Costs Balancing Account E E E E E E E E E KK. Emergency Procurement Surcharge Balancing Account (EPSBA) E (Continued) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1567-E John R. Fielder Date Filed Jul 31, 2001 Decision Senior Vice President Effective Sep 9, H10 Resolution

10 Attachment B Site Name: Gibson Environmental, Inc. Location: 2401 Gibson Street, Bakersfield, California Source, Nature, and Approximate Date of Contamination: Gibson operated a used oil and contaminated soil storage and treatment facility at the site from June 1987 through October Many parties lawfully sent liquid and/or solid waste to the site during that timeframe. These activities were conducted under a permit issued by the California Department of Toxic Substances Control (DTSC) on June 28, In October 1994, DTSC filed a civil lawsuit against the owners and operators of Gibson Environmental alleging numerous violations of hazardous waste laws. On June 25, 1996, DTSC issued a decision denying the facility a hazardous waste permit. DTSC s decision became final on February 4, DTSC estimated there were approximately 670,000 gallons of contaminated liquids and sludge present on the site, contained in numerous tanks, some of which were found to be leaking. There is approximately 85,000 cubic yards of waste soil stockpiled on-site. After Gibson ceased operations, the company became insolvent. Utility Operations (Historical and Current) at the Site: DTSC documentation indicates SCE was responsible for 1,339 tons of solid waste and 225,104 gallons of liquid waste (0.509% and 0.603% respectively) of the total solids and liquid wastes disposed of at the site based on shipping manifests dated from March 1987 to October This volume was sent in 179 separate shipments. Environmental Agency Actions and Oversight: On November 11, 1999, DTSC issued an order to 35 potentially responsible parties (PRPs) identified as substantial contributors of waste at the Gibson site. Such contributors are liable for cleanup costs under state and federal law, including CERCLA, HSAA and common law. Those 35 PRPs created a group and are represented by the law firm Barg Coffin Lewis & Trapp. On April 4, 2001, the 35 PRPs sent a demand letter to SCE and 39 other solid waste generators and/or 21 other liquid waste generators as PRPs. The PRP group has requested payment of $24, from SCE to cover incurred cleanup and oversight costs at the Gibson site. Remediation of the site is on-going. At this point the final cleanup cost estimates are uncertain.

11 Site Name: Southern California Edison General Office Complex Location: 2244 Walnut Grove Ave., Rosemead, CA Source, Nature, and Approximate Date of Contamination: SCE has owned the property since The site encompasses 62.4 acres. There are currently four General Office (GO) buildings at the site. The U. S. Environmental Protection Agency (EPA) notified SCE on February 21, 2001 that SCE is a potential responsible party regarding the South El Monte Operable Unit of the San Gabriel Valley Superfund sites. SCE will have to demonstrate whether we are a potential responsible party or not through further investigation of the site. SCE installed the garage operation at GO 1 around 1970 with underground and aboveground storage tanks. Around 1988, SCE removed the indoor dispenser island and piping during tank removal and discovered soil contamination around the piping. Because the removed tanks were under the foundation of the GO 1 building, access limited soil removal and remediation activities were performed. The Regional Water Quality Control Board (RWQCB) was the oversight agency that worked with SCE on the cleanup. SCE installed monitoring wells, and sampled and analyzed for BTEX. In 1995, the RWQCB requested that SCE submit a workplan to either remediate or implement annual monitoring. In 1999, the RWQCB requested SCE to analyze for additional constituents MTBE, perchlorate, NDMA and 1,4-dioxane. None of the new constituents has been detected in subsequent sampling. SCE is currently seeking closure from the RWQCB for the cleanup. In 1987, SCE installed another garage operation at the Klingerman Street facility, adjacent to GO 2. In addition, there is a paint booth in GO 1, and a print shop in GO 3 to support the headquarters operations. Most recently, SCE completed a comprehensive survey of chemical use and storage information at the request of the RWQCB. SCE anticipates that the RWQCB will require further investigation at the site sometime in Utility Operation (Historical and Current) At The Site: SCE acquired the property in 1949 and The site makes up the General Office Complex used by SCE as corporate headquarters. Originally intended for use as a power plant location, the land use was changed to commercial land use. The first building was built in The headquarters consists of four separate office buildings and an automotive maintenance and fueling operation. Industrial activities in support of the large office complex include painting (with a commercial paint booth), print shop operations, typical building equipment maintenance (HVAC, chiller plant, emergency generators, etc.), as well as vehicle maintenance, fueling, and washing. Environmental Agency Actions and Oversight: SCE will work with the RWQCB to obtain closure on the piping leak cleanup. However, EPA notified the Company on February 21, 2001 that it considers SCE to be a potentially responsible party regarding the South El Monte Operable Unit of the San Gabriel Valley Superfund Sites (NPL site). The two agencies are working together to coordinate activities on the NPL site. It is anticipated that additional site investigation and perhaps additional remediation will be required to satisfy the two agencies.