Workpapers General Rate Case APPLICATION

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1 An E D ISO N INTERNATIONAL Company (U 338-E) 2015 General Rate Case APPLICATION Workpapers Results of Operations (RO) Plant, Taxes, Depreciation Expense and Reserve, Rate Base, and Productivity SCE-10 Volume 02, Chapter III N ovem ber 2013

2 A. Purpose and Scope III. DEPRECIATION STUDY T his section o f the R esults o f O perations presents SC E s proposed depreciation param eters and rates p roposed for the period. SCE retained D ane W atson from A llian ce C onsulting Group to conduct and support the depreciation study for S C E s 2015 G R C, w h ich is presented in SC E -10, V olu m e 3, D irect T estim on y o f D ane A. W atson and the accom panying D epreciation Study. T here are depreciation param eters that are n ot d iscu ssed in Mr. W atson s testim ony, w h ich w ill b e d iscu ssed in this chapter. T hese parameters are related to the follow ing: San O nofre N u clear G enerating Station (SO N G S ) Four Corners G enerating Station M ohave G enerating Station Solar 2 D ecom m ission in g M ountainview U nits 1 and 2 D ecom m ission in g T hese assets are not addressed in Mr. W atson s testim ony due to the unique circum stances surrounding them, the depreciation param eters for th ese assets w ill be d iscu ssed in Section E b elow. B. Summary of Proposal O verall, SCE is proposing changes in depreciation rates that w ill result in a total increase o f S19743 m illion b ased on 2012 plant $88 million of the increase is associated with SONGS. The non-songs related increase in proposed depreciation expense is $108 million. 44 See Deprecation Forecast in Chapter II of this volume, for the total forecast of depreciation expense for 2015, 2016 and

3 See WP p.4 1,800 Figure III-2 Depreciation Rate Proposal Impact by Class o f Plant B ased on Year-End 2012 P lant Balances D 88 1,500 1,450 1,400 A u th o rized Ra te s S O N G S G&I P ro p o se d Rates T he decrease in annual depreciation exp en se for production plant is driven by the exten sion o f the licen se life at the P alo V erde N u clear G eneration Station. Increases in annual depreciation expense for transm ission and distribution assets are due to, increasing rem oval costs, m itigated by som e lengthening service life expectations. T ransm ission and distribution im pacts are d iscu ssed in m ore detail b elow. T he increases in annual depreciation exp en se for general and intangible assets is largely due to changes in lives. 1. Overview of Transmission and Distribution P roposed increases in depreciation rates for transm ission and distribution assets is driven b y increases in n et salvage costs (co sts to retire assets), m itigated by lon ger average service liv e s, as show n b elo w in Figure III-3. 25

4 3 S e e W P p. 1 6 Figure III-3 Depreciation Expense Im pact o f Transmission & Distribution Param eter Updates Authorized Rates Life Updates Net Salvage Updates Proposed Rates SC E s proposal results in a transm ission and distribution com p osite depreciation rate o f 4.02%. T his is a reasonable increase com pared to past proposed levels: S e e W P p. 1 8 " I " 26

5 4 Workpaper - Southern California Edison / 2015 GRC - APPLICATION S e e W P p. 1 8 Figure III-4 Proposed and Authorized Transmission & Distribution Composite Depreciation Rates B ased on Year-End 2012 P lant Balances 6.0% 5.5% f» 5.0% -W Proposed c E g 4.5% J=.g u 4.0% M a u O 3.5% 4.14% 3.0% General Rate Case T he increase in net salvage costs (typically expressed as a percent o f plant b ein g retired) is not a recent d iscovery. SC E has b een requesting larger n egative net salvage rates for over a decade n ow, but authorized param eters have not kept pace. Figure III-5 b elo w sh ow s proposed net salvage and authorized n et salvage for S C E s transm ission and distribution assets as a percent o f plant over the last four G eneral R ate C ases D requested that SCE provide testimony in asset accounts where SCE s proposed net salvage rate is at least 25% more than comparable industry averages. SCE does not possess nor is it aware of any industry statistics that provides recorded net salvage ratios to make such a comparison possible. 27

6 5 Figure III-5 Proposed and Authorized Transmission & Distribution Composite Net Salvage Rates B ased on Year-End 2012 P lant Balances General Rate Case 1 In each o f the cases, SCE has proposed m oderate increases over the then current 2 authorized lev els. W hile the p roposed net salvage percentages m ay appear significant, including the 3 proposed am ounts over authorized lev els, the actual recorded lev els o f n et salvage are far greater, 4 as show n in Figure III-6 b elow. 28

7 6 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Figure III-6 Transmission & Distribution Recorded N et Salvage Rates Com pared to Proposed and A uthorized Levels 160% 146% a 140% 120% 100% 101% 113% See WP p.20 M SS 73 V I 80% 60% 40% Proposed (64%) Authorized (47%) 20% 0% Recorded Period T he gap b etw een authorized net salvage and recorded net salvage is deferred to future ratepayers, w h o w ill bear the cost. T he am ount deferred is not static-it continues to accum ulate w ith each p assin g year that a gap exists. E ven on a dollar b asis, w h en com paring the total net salvage experienced relative to plant retirem ents to the future proposed am ounts, the request is m od est and reasonable. Figure III-7 b elow sh ow s 15 years o f recorded retirem ent experience, w here SCE has incurred approxim ately $1.6 b illion in net salvage costs from $2.3 b illion in retirem ents. SC E s proposal is to have recovered approxim ately $15.1 b illion over the rem aining lifes o f $ b illion in retirem ents ($2.7 b illion o f w h ich has been recovered through the end o f 2012). B A,B,C,D - See WP p.20 E - See D WP p. 12 A A 29

8 7 S e e W P p. 2 0 Figure III-7 Recorded and Future Transmission & Distribution P lant Retirements and N et Salvage $25 $20 R etirem ents N et Salvage 23.4 s c $15 $10 $5 $0 15 Years Recorded Future (All Current Assets) C. Depreciation Background 1. Purpose of Depreciation To provide service to its custom ers, SCE incurs both exp en ses and capital expenditures. G enerally A ccep ted A ccou n tin g P rinciples, sp ecifica lly the M atching Principle,46 govern w hether a particular cost should be capitalized or expensed. W hile the return on SC E s capital assets is m ade by applying an authorized rate o f return (cost o f capital) to its net investm ent, the return o f in vestors capital investm ent is m ade through depreciation expense. D epreciation is a m ajor exp en se representing the recovery o f the original cost o f fixed capital less estim ated n et salvage over an asset s u sefu l life. SC E s investors are entitled to recover costs they in vested to provide electric service to S C E s custom ers. The depreciation rates SCE proposed in this exhibit are d esign ed to accom plish that objective. 46 The matching principle states that each expense item related to revenue earned must be recorded in the same accounting period as the revenue it helped to earn. 30

9 CPUC s Standard Practice U-4 SC E fo llo w s the C o m m ission s Standard Practice U -4, D eterm ination o f Straight-Line R em aining L ife D epreciation A ccruals ( U -4, or Standard Practice U -4 ), dated January 3, Standard Practice U -4 sets forth various factors in fluencing the determ ination o f depreciation accruals and describes m ethods o f calculating th ese accruals w ith the purpose o f assisting the C om m ission staff in determ ining proper depreciation exp en ses. 47 A lthou gh over 4 0 years old, the Standard Practice U -4 represents conventional utility depreciation practices and the C PU C continues to adhere to this standard. 3. Current Gap to Accomplishing Depreciation Objectives and Meeting Requirements in Standard Practice U-4 A s sum m arized above and addressed in detail in Mr. W atson s testim on y,48 the depreciation study addresses the gap that exists betw een recorded net salvage and authorized net salvage for SC E s transm ission and distribution assets. For several o f SC E s accounts, the authorized net salvage rates are significantly low er than w hat SCE continues to experience and w hat w e reasonably exp ect to occur in the future. Standard Practice U -4 s requirem ent is to use the exp ected future net salvage to m eet the objective o f depreciation. T he disparity b etw een our exp ected future net salvage and the authorized am ounts prevents SCE from properly m atching asset costs to the periods custom ers are receivin g the service o f that asset, w h ich is the fundam ental objective o f depreciation. C ost m atching ensures that future custom ers aren t burdened w ith a disproportionate share o f costs or costs for assets from w h ich they receive no benefit. T he longer the disparity exists, the greater the burden future custom ers w ill have to bear. D. Depreciation Study Results 1. Summary of Results SC E retained D ane W atson o f A lliance C onsulting Group to conduct the depreciation study to d evelop and support proposals for service lives and net salvage for SC E s assets (w ith the excep tion o f the assets d iscu ssed in Section E b elo w ).49 T able III-9 (b elow ) sum m arizes the authorized depreciation rates for SC E s m ass assets and rem aining liv es o f certain generation assets: 47 Standard Practice U-4 sets forth various factors in influencing the determination of depreciation accruals and describes methods of calculating these accruals to assist the Commission staff in determining proper depreciation expenses. 48 See Exhibit SCE-10, Volume Id. 31

10 9 S e e W P p p Table III-9 Transmission, Distribution, and General Plant Depreciation Accrual Rates Years Account No. Account Description Authorized (%) Proposed (%) Transmission Plant 350 Easements 1.67 % 1.67 % 352 Structures and Improvements 2.38 % 2.53 % 353 Station Equipment 2.89 % 3.04 % 354 Towers and Fixtures 2.54 % 3.17 % 355 Poles and Fixtures 3.43 % 4.38 % 356 Overhead Conductors & Devices 3.57 % 3.67 % 357 Underground Conduit 1.70 % 1.73 % 358 Underground Conductors & Devices 2.81 % 2.65 % 359 Roads and Trails 1.69 % 1.52 % Distribution Plant 360 Easements 1.67 % 1.67 % 361 Structures and Improvements 3.20 % 3.04 % 362 Station Equipment 3.13 % 3.28 % 364 Poles, Towers and Fixtures 7.06 % 7.81 % 365 Overhead Conductors & Devices 4.61 % 5.15 % 366 Underground Conduit 2.16 % 2.45 % 367 Underground Conductors & Devices 3.35 % 3.90 % 368 Line Transformers 3.68 % 3.93 % 369 Services 4.76 % 5.76 % 370 Meters Non SmartConnect 6yr RL 6yr RL 370 Meters SmartConnect 5.35 % 5.30 % 373 Street Lighting & Signal Systems 2.73 % 3.43 % General Plant 389 Easements 1.67 % 1.67 % 390 Structures and Improvements 1.80 % 2.74 % Office Furniture 5.00 % 5.00 % Personal Computers % % Mainframe Computers % % DDSMS Security Monitoring System % % Office Equipment % % Duplicating Equipment % % PC Software % % 393 Stores Equipment 5.00 % 5.00 % 394 Tools & Work Equipment % % 395 Laboratory Equipment 6.67 % 6.67 % 397 Telecommunication Equipment 7.57 % 9.77 % 398 Misc Power Plant Equipment 5.00 % 5.00 % Production Plant Mohave Generating Station 3yr RL 3yr RL Four Corners Generating Station 2yr RL 5yr RL San Onofre Nuclear Generating Station Used and Useful 9.2yr RL 9.5yr RL San Onofre Nuclear Generating Station Not Required 9.2yr RL 5yr RL Palo Verde Nuclear Generating Station 12.7yr RL 33.5yr RL Peakers 19.4yr RL 20.6yr RL Mountainview Units 3&4 19.1yr RL 23.0yr RL Solar Photvoltaic 17.2 yr RL 18.6yr RL Fuel Cell N/A 10yr RL 32

11 Use of Aged Data A s part o f the d ecision in SC E s GRC, the C om m ission directed that SCE should inform the C om m ission w hether it u sed any aged data and i f not, w h en su fficien t data is exp ected to be availab le. 50 SCE began collectin g aged data in the m iddle o f , and does not have su fficien t aged data to perform an effectiv e actuarial life analysis. SC E expects that aged data m ay b ecom e u sefu l in 10 years or so. E. Select Generation Assets SC E has five generation plants that h ave already b een or w ill be shut dow n during the years T he circum stances surrounding th ese assets and the proposed cost recovery o f the rem aining unrecovered investm ent w ill be addressed in this section. T he five plants are: 1) San Onofre G enerating Station; 2) Four Corners G enerating Station; 3) M oh ave G enerating Station; 4 ) Solar 2 D ecom m ission in g; and 5) M ou ntainview U nits 1 & 2 D ecom m ission in g. 1. San Onofre Generating Station P p.22 SC E announced the perm anent shutdow n o f SO N G S U n its 2and 3 on June 7, SCE is proposing to retain the current authorized life for SO N G S plant that is cla ssified as used and usefu l and am ortize the unrecovered investm ent through the rem aining life o f 9.5 years (through June 2022). For SO N G S plant that is no longer required SC E is proposing a 5 year rem aining life b egin ning June In addition to the fix ed asset costs, the balance o f m aterials and supplies is approxim ately $100 m illion at year-end SC E is proposing to am ortize this balance along w ith capital investm ent over the rem aining life starting Four Corners Generating Station Four Corners is assum ed to cease operations in July and initiate d ecom m ission in g activities. B ased on the depreciation life authorized in SC E s G R C, SCE w ill have fully depreciated the net investm ent through 2014 in addition to $37 m illion authorized for d ecom m ission in g. There is $28 m illion o f additional capital and d ecom m issionin g costs exp ected in the period above w hat w ill have b een accrued for through SC E is proposing to am ortize th ese costs over the period. 50 D See Exhibit SCE-02, Volume 6, Part 2. 33

12 Mohave Generating Station T he M ohave G enerating Station w as shut dow n on 1 2 /3 1/2005. Pursuant to D , SCE w ill continue to am ortize the net investm ent and d ecom m ission in g costs through The balance o f th ese costs is $23 m illion as o f 1 2 /3 1/2012. In addition, there are capital costs related to continued operations and the aquifer study w h ich have not b een closed to plant and depreciated. SC E is proposing to retain the authorized allocation period and depreciate the balance o f th ese costs ($26 m illion ), in Solar 2 Decommissioning SC E w as authorized to accrue approxim ately $3 m illion in d ecom m ission in g costs for its Solar 2 generating facility.52 SCE has sin ce com pleted the d ecom m issionin g at a total cost o f approxim ately $1 m illion. SCE is prop osing to am ortize the balance o f depreciation accrued, but not spent, back to custom ers over the GRC period. 5. Mountainview Units 1 and 2 Decommissioning SC E w as authorized to accrue approxim ately $11 m illion in d ecom m ission in g costs for its M ountainview U nits 1 and 2 generating facility.53 SC E has since com pleted the d ecom m ission in g at a total cost o f approxim ately $3 m illion. SCE is proposing to am ortize the balance o f depreciation accrued, but not spent, back to custom ers over the GRC period. 52 D Id. 34

13 2015 General Rate Case - APPLICATION INDEX OF WORKPAPERS EXHIBIT SCE-10, Volume 2 DOCUMENT PAGE(S) Comparison of Depreciation Accrual Rates Straight Line Remaining Life Method 1-4 Annual Accrual Rate Determination Straight Line Life Method 5-14 Account Impact of Life and Net Salvage Parameters Transmission and Distribution Composite Rate Calculations SONGS Materials & Supplies Recorded Balance 21-22

14 1 S C E - 1 0, V o l u m e 2, R e s u lt s o f O p e r a t io n s D e p r e c i a t i o n S t u d y Witness: Rick Fisher C o m p a r is o n o f D e p r e c i a t i o n A c c r u a l R a te s S t r a ig h t L i n e R e m a i n i n g L i f e M e t h o d

15 2 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Southern California Edison Comparison of Depreciation Accrual Rates Straight Line Remaining Life Method For Estimated Year 2015 ($ 000's) PRESENT PRESENT PROPOSED PROPOSED ANNUAL ANNUAL ANNUAL ANNUAL INCREASE GROSS PLANT FUTURE RESERVE ACCRUAL ACCRUAL ACCRUAL ACCRUAL (DECREASE) Production Jan. 1, 2013 DECOMM Jan. 1, 2013 RATE/LIFE AMOUNT RATE/LIFE AMOUNT IN ACCRUAL Nuclear Production PVNGS Production 1,786,975 1,464, , ,619 (15,786) PVNGS DBD & Debits 26,547 24, (118) SONGS Used and Useful 2,381,540 2,045, , ,321 (1,153) SONGS - Retires 2,418,299 1,996, , ,336 38,501 SGRP 584,172 25, , ,825 51,050 Total Nuclear Production 7,197,533 5,555, , ,176 72,495 Steam Production Mountainview 698,273 (9,493) 165, , ,596 (4,817) Four Corners 589,434 (36,581) 547, , ,393 0 Mohave - Production 312,317 (32,711) 321, , ,727 0 Total Steam Production 1,600,024 (78,786) 1,034, , ,715 (4,817) Other Production Production - Pebbly Beach 41,242 (655) 16, , ,371 0 Production - Peakers 298,986 (7,423) 59, , ,946 (759) Production - Solar PV 338,868 (27,175) 34, , ,781 (1,487) Total Other Production 679,096 (35,252) 110, , ,099 (2,247) Change in Decommissioning Estimates Mountainview - 3&4 (6,824) Four Corners (20,960) 3.0 6,987 6,987 Mohave (2,511) 1.0 2,511 2,511 Pebbly Beach (5,951) Peakers (4,680) Solar PV (54,729) ,936 2,936 Total Change in Decomm Estimates (95,654) 13,275 Depreciation Expense Refunds Original Mountainview 1&2 Decomm Estimate (10,600) 10, (108) 3.0 (108) 0 Solar 2 Original Decomm Estimate (4,639) 3, Difference Between Recorded and Estimate 11, (3,714) (3,714) Total Refund Accrual (3,714) Hydro Production 330 Land and Land Rights 3, % % 89 (5) 331 Structures and Improvements 157, % 2, % 3, Reservoirs, Dams and Waterways 513, % 9, % 12,107 2, Water Wheels, Turbines & Genera 149, % 2, % 3, Accessory Electric Equipment 178, % 7, % 7, Misc. Power Plant Equipment 12, % % Roads, Railroads & Bridges 11, % % Total Hydro Production 1,026, % 22, % 27,704 5,436 Total Production 10,503,201 (213,789) 6,715, , ,602 80,428

16 3 Southern California Edison Comparison of Depreciation Accrual Rates Straight Line Remaining Life Method For Estimated Year 2015 ($ 000's) PRESENT PRESENT PROPOSED PROPOSED ANNUAL ANNUAL ANNUAL ANNUAL INCREASE GROSS PLANT ACCRUAL ACCRUAL ACCRUAL ACCRUAL (DECREASE) Transmission and Distribution Jan. 1, 2013 RATE/LIFE AMOUNT RATE/LIFE AMOUNT IN ACCRUAL Transmission Plant Easements 148, % 2, % 2, Structures and Improvements 376, % 8, % 9, Station Equipment % % 121,052 5,973 Total Transmission Substations 4,358, % 124, % 130,582 6, Towers and Fixtures 772, % 19, % 24,479 4, Poles and Fixtures 603, % 20, % 26,442 5, Overhead Conductors & Devices 706, % 25, % 25, Underground Conduit 48, % % Underground Conductors & Devices 208, % 5, % 5,516 (333) 359 Roads and Trails 43, % % 654 iz ii Total Transmission Lines 2,381, % 72, % 83,842 10,914 Total Transmission 6,888, % 199, % 216,895 17,452 Distribution Plant Easements 56, % % Structures and Improvements 436, % 13, % 13,280 (699) 362 Station Equipment 1,761, % 55, % 57,762 2,642 Total Distribution Substations 2,197, % 69, % 71,042 1, Poles, Towers and Fixtures 1,655, % 116, % 129,258 12, Overhead Conductors & Devices 1,195, % 55, % 61,576 6, Underground Conduit 1,389, % 30, % 34,044 4, Underground Conductors & Devices 4,402, % 147, % 171,680 24, Line Transformers 3,022, % 111, % 118,768 7, Services 1,172, % 55, % 67,511 11, Meters 888, % 47, % 47,104 (444) 373 Street Lighting & Signal Systems 753, % 20, % 25,853 5,276 Total Distribution Lines 14,478, % 584, % 655,794 71,218 Total Distribution 16,733, % 654, % 727,775 73,160 Total Transmission and Distribution 23,621, % 854, % 944,670 90,613

17 4 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Southern California Edison Comparison of Depreciation Accrual Rates Straight Line Remaining Life Method For Estimated Year 2015 ($ 000's) General and Intangible General Plant Easements 390 Structures and Improvements 391.x Furniture & Equipment GROSS PLANT Jan. 1, 2013 PRESENT ANNUAL ACCRUAL RATE/LIFE PRESENT ANNUAL ACCRUAL AMOUNT PROPOSED ANNUAL ACCRUAL RATE/LIFE PROPOSED ANNUAL ACCRUAL AMOUNT INCREASE (DECREASE) IN ACCRUAL 3, % % , % 15, % 23,097 7, , % 6, % 8,410 2, x Computers Security Monitoring (DDSMS) 391.x Stores/Lab/Miscellaneous 397.x Telecommunications 39x General Other Total General Plant Intangible Plant Hydro Relicensing Radio Frequency Other Intangibles 497, % 96, % 104,416 8,179 24, % 3, % 3,133 (827) 92, % 7, % 6,064 (1,471) 579, % 43, % 56,564 12,723 86, % 13, % 9,854 (3,279) 2,308, % 186, % 211,592 25, , % 3, % 3,143 (152) 18, % % % % , % 3, % 3,637 (152) Cap Soft 5yr* Cap Soft 7yr* Cap Soft 10yr* Cap Soft 15yr* Total Cap Soft Total Intangible Catalina Plant Total General and Intangible *Includes reserve adjustments SONGS Generation (Non-SONGS) Transmission Distribution General and Intangible 449, % 96, % 92,578 (3,707) 861, % 126, % 128,686 1,940 71, % 7, % 8,893 1, , % 8, % 8, ,507, % 238, % 238, ,651, % 242, % 242,242 (25) % % ,960, % 428, % 453,851 25,559 5,384, , ,481 88,399 5,119, , ,120 (7,971) 6,888, , ,895 17,452 16,733, , ,775 73,160 3,960, , ,851 25,559 Total Company 38,084,982 1,582,523 1,779, ,600 F i g u r e ^ \A _

18 5 S C E - 1 0, V o l u m e 2, R e s u lt s o f O p e r a t io n s D e p r e c i a t i o n S t u d y Witness: Rick Fisher A n n u a l A c c r u a l R a t e D e t e r m i n a t i o n S t r a ig h t L i n e R e m a i n i n g L i f e M e t h o d

19 CD S o uthern C a lifo rn ia Edison Annual A ccru a l Rate D eterm ination S tra ig h t Line R em aining Life M ethod For Estimated Year 2015 Exhibit No. SCE-10 / Results of Operations / Vol. 02 / Ch. Ill DEPRECIATION DEPRECIABLE GROSS PLANT EST. FUTURE NET SALVAGE RESERVE BALANCE REM. ANNUAL % GROSS January 1, 2013 % AMOUNT January 1, 2013 January 1, 2013 LIFE ACCRUAL PLANT * (1) (2) (3) (4) (5) (10) (11) (12) STEAM PRODUCTION - MOHAVE 311 Structures and Improvements 33,849,962 0% - 36,312,267 (2,462,304.7) 3.0 (820,394) 312 Boiler Plant Equipment 182,355,024 0% - 166,547,263 15,807, ,266, Turbogenerator Units 60,439,456 0% - 55,703,986 4,735, ,577, Accessory Electric Equipment 30,334,487 0% - 26,572,545 3,761, ,253, Misc. Power Plant Equipment 5,144,080 0% - 4,345, , ,956 31x Decommissioning (35,222,233) 33,480,397 1,741, ,347 39x General Plant 194,129 0% - (1,123,964) 1,318, ,164 39x General Other Plant - 0% x Generation-Related Transmission (GRT) - 0% Total Mohave 312,317,138 (35,222,233) 321,838,342 25,701, ,563,102 I 2.74% STEAM PRODUCTION ~ FOUR CORNERS 311 Structures and Improvements 23,696,661 0% - 21,218,155 2,478, ,240, Boiler Plant Equipment 449,246,170 0% - 399,558,169 49,688, ,869, Turbogenerator Units 58,308,214 0% - 50,434,632 7,873, ,940, Accessory Electric Equipment 22,023,922 0% - 15,127,849 6,896, ,451, Misc. Power Plant Equipment 26,853,977 0% - 22,411,142 4,442, ,223,701 31x Decommissioning - 0% (57,541,000) 33,947,829 23,593, ,808,709 39x General Plant 1,866,614 0% - 1,009, , ,912 35x Generation Related Transmission (GRT) 7,366,645 0% - 3,565,853 3,800, ,902, Intangibles 71,762 0% - 36,940 34, ,429 Total Four Corners 589,433,965 (57,541,000) 547,310,240 99,664, ,883,578 I 8.46% NUCLEAR PRODUCTION - SAN ONOFRE Easements 1,104,058 0% - 601, , , Structures & Improvements 1,229,060,869 0% - 1,085,347, ,713, ,127, Reactor Plant Equipment 1,709,739,437 0% - 1,387,854, ,884, ,881, Steam Generator Replacement (SGRP) 584,171,634 0% - 25,047, ,123, ,853, Turbogenerator Units 623,497,000 0% - 512,581, ,915, ,674, Accessory Electric Equipment 740,949,852 0% - 653,638,010 87,311, ,190, Misc. Power Plant Equipment 306,075,114 0% - 286,090,937 19,984, ,103,522 Decommissioning - 0% - 10,666,295 (10,666,295.0) 9.5 (1,122,727) Marine Mitigation 64,250,415 0% - 17,619,378 46,631, ,908,353 Total SONGS Production 5,258,848,380-3,979,447,209 1,279,401, ,668, % 182 Design Basis Documentation (DBD) 2,122,502 0%. 1,127, , , Deferred Debits 30,998,541 0% - 28,901,174 2,097, ,768 Total SONGS DBD & Debits 33,121,043-30,028,225 3,092, ,548 I 0.98% 39x General Plant 42,842,196 0%. 22,298,675 20,543, ,162,398 35x Generation-Related Transmission (GRT) 34,131,640 0% - 26,266,471 7,865, , Intangibles 15,067,054 0% - 9,606,774 5,460, ,746 Total SONGS General and Other 92,040,890-58,171,920 33,868, ,565,026 Total SONGS Plant 5,384,010,313-4,067,647,354 1,316,362, ,559,530 I 2.57% 1 Workpaper - Southern California Edison / 2015 GRC - APPLICATION

20 - n I S o uthern C a lifo rn ia Edison Annual A ccru a l Rate D eterm ination S tra ig h t Line R em aining Life M ethod For Estimated Year 2015 Exhibit No. SCE-10 / Results of Operations / Vol. 02 / Ch. Ill DEPRECIATION DEPRECIABLE GROSS PLANT EST. FUTURE NET SALVAGE RESERVE BALANCE REM. ANNUAL % GROSS January 1, 2013 % AMOUNT January 1, 2013 January 1, 2013 LIFE ACCRUAL PLANT * (1) (2) (3) (4) (5) (10) (11) (12) NUCLEAR PRODUCTION ~ PALO VERDE Easements - 0% Structures & Improvements 543,695,218 0% - 403,903, ,792, ,167, Reactor Plant Equipment 706,926,523 0% - 585,962, ,963, ,606, Turbogenerator Units 254,867,598 0% - 213,337,770 41,529, ,238, Accessory Electric Equipment 181,783,854 0% - 166,374,080 15,409, , Misc. Power Plant Equipment 97,957,025 0% - 92,089,056 5,867, ,942 Decommissioning - 0% - 2,113,296 (2,113,296.5) 33.5 (63,004) Total PVNGS Production 1,785,230,219 1,463,779, ,450,315.5 I 0.54% 182 Design Basis Documentation 182 Deferred Debits Total PVNGS DBD & Debits Total PVNGS Plant 7,772,588 18,774,769 26,547,357 1,811,777,576 0% 0% 7,076,070 16,940,502 24,016,572 1,487,796, , ,834, ,530, ' 323,981, ,765 54,685 75,451 ~ 0.53% HYDRO ELECTRIC PRODUCTION Easements 3,310,851 0% - 696,533 2,614, , % 331 Structures and Improvements 157,619,113-7% (11,566,481) 54,218, ,966, ,528, % 332 Reservoirs, Dams and Waterways 513,022,666-4% (19,216,823) 229,115, ,124, ,115, % 333 Water Wheels, Turbines & Generators 149,323,725-6% (8,351,827) 58,487,821 99,187, ,548, % 334 Accessory Electric Equipment 178,935,508-20% (36,331,402) 31,010, ,256, ,544, % 335 Misc. Power Plant Equipment 12,389,392-7% (893,788) 6,406,037 6,877, , % 336 Roads, Railroads & Bridges 11,946,663-25% (2,934,247) 4,737,805 10,143, , % Total Hydro Electric Production 1,023,237,066 (79,294,569) 383,976, ,555, ,608, % Total Hydro Electric 1,026,547,917 (79,294,569) 384,672, ,169, ,697, % OTHER PRODUCTION ~ PEBBLY BEACH 340 Land and Land Rights - 0% Structures and Improvements 2,217,206 0%. 532,305 1,684, , Fuel Holders, Prdcrs & Accssrs 1,314,447 0% - 103,558 1,210, , Prime Movers 20,412,167 0% - 9,345,057 11,067, , Generators 9,577,611 0% - 3,736,838 5,840, , Accessory Electric Equipment 7,216,513 0% - 2,157,649 5,058, , Misc. Power Plant Equipment 504,144 0% - 162, , ,230 34x Decommissioning - 0% (6,605,101) 163,481 6,441, ,704 Total Other Production 41,242,089 (6,605,101) 16,201,371 31,645, ,688, % OTHER PRODUCTION - PEAKERS 340 Land and Land Rights 526,948 0% - 58, , , Structures and Improvements 11,414,202 0% - 1,242,435 10,171, , Fuel Holders, Prdcrs & Accssrs 1,942,003 0% - 422,192 1,519, , Prime Movers 220,748,844 0% - 44,050, ,698, ,564, Generators 15,080 0% - 1,223 13, Accessory Electric Equipment 61,315,340 0% - 12,587,458 48,727, ,361, Misc. Power Plant Equipment 3,023,969 0% - 357,834 2,666, ,220 34x Peakers Decommissioning - 0% (12,103,028) 1,261,640 10,841, ,450 Total Peakers 298,459,438 (12,103,028) 59,923, ,639, ,147, %

21 00 Southern California Edison Annual Accrual Rate Determination Straight Line Remaining Life Method For Estimated Year 2015 Exhibit No. SCE-10 / Results of Operations / Vol. 02 / Ch. Ill (1) STEAM PRODUCTION - MOUNTAINVIEW 341 Structures and Improvements 45,397, Boiler Plant Equipment 7,403, Prime Movers 435,100, Turbogenerator Units 76,883, Accessory Electric Equipment 85,106, Misc. Power Plant Equipment 3,731,530 34x Mountainview Decommissioning 3&4 Total Mountainview Production 653,623,396 OTHER PRODUCTION - Fuel Cell 343 Prime Movers Total Other Production GROSS PLANT January 1, Organization 2,796, Misc. Intangibles 41,853,200 Mountainview Intangibles 44,649,817 OTHER PRODUCTION - SOLAR 2 DECOMMISSIONING 34x Mountainview Decommissioning 1&2 34x Solar 2 Decommissioning OTHER PRODUCTION - SOLAR PV 341 Structures and Improvements 11,887, Prime Movers 319,984, Accessory Electric Equipment 6,994,921 34x Solar PV Decommissioning - Solar Production 338,867,708 DEPRECIATION DEPRECIABLE EST. FUTURE NET SALVAGE RESERVE BALANCE REM. ANNUAL % GROSS % AMOUNT January 1, 2013 January 1, 2013 LIFE ACCRUAL PLANT * (2) (3) (4) (5) (10) (11) (12) 0%. 9,745,631 35,651, ,550,122 0% - 1,739,965 5,663, ,257 0% - 103,280, ,820, ,427,398 0% - 18,114,506 58,768, ,555,229 0% - 18,298,338 66,808, ,904,805 0% - 346,107 3,385, ,197 0% (16,316,775) 1,853,327 14,463, ,864 (16,316,775) 153,378, ,561, ,459,873 0%. 657,042 2,139, ,028 0% - 11,041,110 30,812, ,339,696 11,698,151 32,951, ,432,724 I 3.21% 0% (3,150,723) 10,922,516 (7,771,792.5) 3.0 (2,590,597) 0% (946,457) 3,731,825 (2,785,368.3) 3.0 (928,456) (4,097,180) 14,654,341 (10,557,161) 3.0 (3,519,054) 0% 844,339 11,043, ,503 0% - 26,252, ,732, ,759,132 0% - 551,917 6,443, , % 0% (81,903,634) 6,967,275 74,936, ,020, % (81,903,634) 34,616, ,154, ,717, % 0% ,215,167, ,518,144

22 CD S o uthern C a lifo rn ia Edison Annual A ccru a l Rate D eterm ination S tra ig h t Line R em aining Life M ethod For Estimated Year 2015 Exhibit No. SCE-10 / Results of Operations / Vol. 02 / Ch. Ill DEPRECIATION DEPRECIABLE GROSS PLANT EST. FUTURE NET SALVAGE RESERVE BALANCE REM. ANNUAL % GROSS January 1, 2013 % AMOUNT January 1, 2013 January 1, 2013 LIFE ACCRUAL PLANT * (1) (2) (3) (4) (5) (10) (11) (12) TRANSMISSION PLANT Easements 148,017,300 0% - 12,855, ,162, ,466, % 352 Structures and Improvements 376,680,053-35% (131,838,018) 90,828, ,689, ,537, % 353 Station Equipment 3,981,957,655-15% (597,293,648) 514,217,874 4,065,033, ,119, % Total Transmission Substations 4,358,637,708 (729,131,667) 605,046,726 4,482,722, ,656, % 354 Towers and Fixtures 772,203, % (772,203,666) 421,305,615 1,123,101, ,456, % 355 Poles and Fixtures 603,692,254-85% (513,138,416) 174,800, ,029, ,418, % 356 Overhead Conductors & Devices 706,020, % (706,020,711) 537,696, ,345, ,893, % 357 Underground Conduit 48,517,033 0% - 15,274,840 33,242, , % 358 Underground Conductors & Devices 208,167,367-15% (31,225,105) 78,244, ,147, ,512, % 359 Roads and Trails 43,038,583 0% - 13,980,865 29,057, , % Total Transmissions Lines 2,381,639,615 (2,022,587,898) 1,241,303,586 3,162,923, ,773, % Total Transmission Plant 6,888,294,622 (2,751,719,565) 1,859,205,595 7,780,808, ,896, % DISTRIBUTION PLANT Easements 56,249,558 0% - 6,219,477 50,030, ,493 I 1.67% 361 Structures and Improvements 436,830,749-25% (109,207,687) 159,481, ,556, ,288, % 362 Station Equipment 1,761,037,883-30% (528,311,365) 281,581,641 2,007,767, ,736, % Total Distribution Substations 2,197,868,632 (637,519,052) 441,063,537 2,394,324, ,024, % 364 Poles, Towers and Fixtures 1,655,027, % (3,723,811,016) 623,811,488 4,755,026, ,295, % 365 Overhead Conductors & Devices 1,195,653, % (1,494,566,578) 520,102,755 2,170,117, ,635, % 366 Underground Conduit 1,389,563,200-40% (555,825,280) 424,307,681 1,521,080, ,014, % 367 Underground Conductors & Devices 4,402,043,706-80% (3,521,634,965) 2,030,293,634 5,893,385, ,805, % 368 Line Transformers 3,022,095,507-20% (604,419,101) 684,576,066 2,941,938, ,757, % 369 Services 1,172,062, % (1,465,077,609) 683,575,166 1,953,564, ,467, % 370 Meters 888,759,132-5% (44,437,957) 73,310, ,886, ,142, % 373 Street Lighting & Signal Systems 753,720,538-40% (301,488,215) 267,633, ,575, ,859, % Total Distribution Lines 14,478,924,549 (11,711,260,720) 5,307,610,408 20,882,574, ,979, % Total Distribution Plant 16,733,042,739 (12,348,779,772) 5,754,893,422 23,326,929, ,941, % 370 (LM) Legacy Meters 71,977,268 0% - (173,489,817) 245,467, ,093, %

23 S o uthern C a lifo rn ia Edison Annual A ccru a l Rate D eterm ination S tra ig h t Line R em aining Life M ethod For Estimated Year 2015 Exhibit No. SCE-10 / Results of Operations / Vol. 02 / Ch. Ill DEPRECIATION DEPRECIABLE GROSS PLANT EST. FUTURE NET SALVAGE RESERVE BALANCE REM. ANNUAL % GROSS January 1, 2013 % AMOUNT January 1, 2013 January 1, 2013 LIFE ACCRUAL PLANT * (1) (2) (3) (4) (5) (10) (11) (12) G ENERAL PLANT Easements 3,269,367 0% - 378,977 2,890, , % 390 Structures and Improvements 843,141,417-10% (84,314,142) 285,173, ,282, ,097, % 391.x Furniture & Equipment 181,866,315 0% - 70,387, ,478, ,409, % 391.x Computers 497,348,874 0% - 183,123, ,225, ,415, % Security Monitoring (DDSMS) 24,282,044 0% - 6,604,333 17,677, ,132, % 391.x Stores/Lab/Miscellaneous 92,683,712 0% - 40,156,646 52,527, ,064, % 397.x Telecommunications 579,143,812 0% - 163,891, ,252, ,563, % 39x General Other 86,286,967 25% 21,571,742 99,383 64,615, ,854, % Total General Plant 2,308,022,507 (62,742,400) 749,814,989 1,620,949, ,592,258 GRAND TOTAL 35,094,688,866 (15,345,055,363) 15,200,303,076 35,239,441, ,389,891, % INTANGIBLES Hydro Relicensing 124,930,436 0% 29,771,926 95,158, ,143,089 Radio Frequency 18,723,340 0% 8,284,523 10,438, ,084 Other Intangibles 510,832 0% 102, , ,542 Cap Soft 5yr 238,605, ,748,553 0% 145,096, ,652, ,949,711 Cap Soft 7yr 861,860,605 0% 380,239, ,621, ,122,944 Cap Soft 10yr 71,434,285 0% 41,042,134 30,392, ,143,429 Cap Soft 15yr 124,570,889 0% 110,191,193 14,379, ,304,726 Cap Soft Cap Soft (5 yr) Acc. Dep. Adjustment (5,210,988) 5,210, ,628,325 Cap Soft Cap Soft (7 yr) Acc. Dep. Adjustment (20,909,536) 20,909, ,562,577 Cap Soft Cap Soft (10 yr) Acc. Dep. Adjustment (8,612,753) 8,612, ,749,749 Cap Soft Cap Soft (15 yr) Acc. Dep. Adjustment (764,807) 764, ,923 Cap Soft 1,507,614, ,568, ,072,449.0 CATALINA COMMON GENERAL 390 Structures and Improvements 602,224-10% (60,222) 233, , , % 391 Office Furniture and Equipment 26,443 0% - 26, % 393 Stores Equipment 6,668 0% - 6, % 397 Communication Equipment 6,638 0% - 6, % Total General 641,973 (60,222) 272, , , % GENERAL OTHER 394 Tools, Shop & Garage Equipment GRAND TOTAL COMMON 29, ,513 0% (60,222) 29, , % 2.50% 5.00% % 14.29% 10.00% 6.67% 0.0 I 0.00% I 16, % 1

24 S o uthern C a lifo rn ia Edison Annual A ccru a l Rate D eterm ination S tra ig h t Line R em aining Life M ethod For Estimated Year 2015 lomposite DEPRECIATION RATES DEPRECIATION DEPRECIABLE GROSS PLANT EST. FUTURE NET SALVAGE RESERVE BALANCE REM. ANNUAL % GROSS January 1, 2013 % AMOUNT January 1, 2013 January 1, 2013 LIFE ACCRUAL PLANT * (1) (2) (3) (4) (5) (10) (11) (12) Exhibit No. SCE-10 / Results of Operations / Vol. 02 / Ch. Ill Office Furniture 179,395,313 0%. 63,580, ,814, ,969, % Office Equipment 1,469,373 0% - 787, , , % Duplicating Equipment 1,001,629 0% - 157, , , % Acc. Dep. Adjustment 5,862,656 (5,862,656.4) 5.6 (1,054,455) Furniture & Equipment 181,866,315 0% - 70,387, ,478, ,409, % Personal Computers 69,659,224 0%. 35,839,294 33,819, ,931, % Mainframe Computers 427,689,651 0% - 169,510, ,179, ,537, % PC Software - 0% % Acc. Dep. Adjustment (22,226,444) 22,226, ,945,887 Computers 497,348,874 0% - 183,123, ,225, ,415, % DDSMS - CPU & Processing 7,615,923 0%. 1,924,924 5,690, ,088, % DDSMS - Controllers, Receivers, Comm. 8,660,592 0% - 3,340,524 5,320, , % DDSMS - Telemetering & System 760,431 0% - 457, , , % DDSMS - Miscellaneous 6,711,283 0% - 3,940,488 2,770, , % DDSMS - Map Board 533,814 0% - 255, , , % Acc. Dep. Adjustment (3,314,706) 3,314, ,913 Security Monitoring (DDSMS) 24,282,044 0% - 6,604,333 17,677, ,132,925 I 12.90% 393 Stores Equipment 9,443,528 0%. 5,308,468 4,135, , % 395 Laboratory Equipment 67,396,651 0% - 28,750,609 38,646, ,495, % 398 Misc Power Plant Equipment 15,843,532 0% - 7,266,264 8,577, , % Acc. Dep. Adjustment (1,168,695) 1,168, ,770 Stores/Lab/Miscellaneous 92,683,712 0% - 40,156,646 52,527, ,064, % 397.x Data Network Systems 118,056,250 0%. 41,239,922 76,816, ,611, % 397.x Telecom System Equipment 52,416,842 0% - 5,937,676 46,479, ,490, % 397.x Netcomm Radio Assembly 165,018,399 0% - 61,814, ,203, ,501, % 397.x Microwave Equip. & Antenna Assembly 24,969,669 0% - 8,948,056 16,021, ,665, % 397.x Telecom Power Systems 8,967,555 0% - 3,809,244 5,158, , % 397.x Fiber Optic Communication Cables 106,932,731 0% - 30,822,008 76,110, ,612, % 397.x Telecom Infrastructure 102,782,366 0% - 1,772, ,009, ,783, % Acc. Dep. Adjustment 9,547,223 (9,547,223.0) 6.2 (1,549,411) Telecom m unications 579,143,812 0% - 163,891, ,252, ,563, % 392 Transportation Equip. 11,276,459 0%. 3,268,449 8,008, ,611, % Garage & Shop -- Equip. 5,627,790 0% - 2,289,781 3,338, , % Tools & Work Equip. -- Shop 68,704,221 0% - 19,923,105 48,781, ,870, % 396 Power Oper Equip 678,498 25% 169,624 99, , , % Acc. Dep. Adjustment (4,757,731) 4,757, ,281 General Other 86,286,967 0% 169,624 20,822,987 65,294, ,854, %

25 Southern California Edison Annual Accrual Rate Determination Straight Line Remaining Life Method For Estimated Year 2015 Exhibit No. SCE-10 / Results of Operations / Vol. 02 / Ch. Ill EST. FUTURE COST OF REMOVAL COR DEPR COR DEPR ANNUAL COR COR % O GROSS PLANT % $ RESERVE BALANCE ACCRUAL GROSS PL/ January 1, 2013 January 1, 2013 January 1, 2013 UJ T R A N S M IS S IO N P L A N T Easements 148,017, % 0.00% 352 Structures and Improvements 376,680, % (131,838,018) 27,931, ,906,957 2,372, % 353 Station Equipment 3,981,957, % (796,391,531) 410, ,981,524 23,716, % Total Transmission Substations 4,358,637,708 (928,229,549) 28,341, ,888,481 26,089, % 354 Towers and Fixtures 772,203, % (926,644,399) 181,517, ,127,071 16,225, % 355 Poles and Fixtures 603,692, % (664,061,479) 84,945, ,115,554 16,240, % 356 Overhead Conductors & Devices 706,020, % (1,023,730,031) 333,088, ,641,404 20,453, % 357 Underground Conduit 48,517, % (7,284) 7, % 358 Underground Conductors & Devices 208,167, % (72,858,578) 26,354,053 46,504,525 1,590, % 359 Roads and Trails 43,038, % (6,415) 6, % Total Transmissions Lines 2,381,639,615 (2,687,294,489) 625,892,235 2,061,402,253 54,510, % Total Transmission Plant 6,888,294,622 (3,615,524,038) 654,233,303 5,022,692,988 80,599,920 D IS T R IB U T IO N P L A N T Easements 56,249, % (3,298) 3, % 361 Structures and Improvements 436,830, % (109,207,687) 18,526,076 90,681,611 3,117, % 362 Station Equipment 1,761,037, % (704,415,153) 28,046, ,369,034 19,449, % Total Distribution Substations 2,197,868,632 (813,622,840) 46,572, ,050,645 22,567, % 364 Poles, Towers and Fixtures 1,655,027, % (4,220,319,151) 377,204,484 3,843,114, ,499, % 365 Overhead Conductors & Devices 1,195,653, % (1,733,697,230) 324,330,782 1,409,366,448 40,028, % 366 Underground Conduit 1,389,563, % (625,303,440) 79,912, ,390,674 12,196, % 367 Underground Conductors & Devices 4,402,043, % (3,961,839,335) 775,175,958 3,186,663,378 92,898, % 368 Line Transformers 3,022,095, % (1,057,733,427) (12,936,275) 1,070,669,703 43,219, % 369 Services 1,172,062, % (1,640,886,922) 321,051,637 1,319,835,285 45,581, % 370 Meters 888,759, % (44,437,957) (16,249,291) 60,687,248 3,327, % 373 Street Lighting & Signal Systems 753,720, % (640,662,457) 140,350, ,312,315 16,427, % Total Distribution Lines 14,478,924,549 (13,924,879,919) 1,988,840,202 11,936,039, ,179, % Total Distribution Plant 16,733,042,739 (14,738,502,760) 2,035,409,100 12,703,093, ,746,382

26 SOUTHERN CALIFORNIA EDISON COMPANY GENERATION REMAINING LIFE DETERMINATION Remaining Life As Of Exhibit No. SCE-10 / Results of Operations / Vol. 02 / Ch. Ill UNIT 1 2 LOCN DESCRIPTION 1320 Mohave 1320 Mohave Mohave Remaining Life Span: DATE OF FIRM DATE FULLY TOTAL OPERATION DEPRECIATED WEIGHTING LIFE SPAN 01/01/71 01/01/16 50% /01/71 01/01/16 50% % 45.0 AGE (YRS) RMNG LIFE SPAN WTDREM LIFE SPAN WTDAGE Four Comers Remaining Life Span: DATE OF FIRM DATE FULLY TOTAL AGE RMNG WTDREM UNIT LOCN DESCRIPTION OPERATION DEPRECIATED WEIGHTING LIFE SPAN fyrs) LIFE SPAN LIFE SPAN WTDAGE Four Comers 07/01/69 07/01/14 50% Four Comers 07/01/70 07/01/15 50% % Pebbly Beach Remaining Life Span: DATE OF FIRM DATE FULLY TOTAL AGE RMNG WTDREM MW H. Whitman OPERATION DEPRECIATED WEIGHTING LIFE SPAN (YRS) LIFE SPAN LIFE SPAN WTDAGE Unit 7 Diesel % Unit 8 Diesel % Unitl 0 Diesel % Unitl 2 Diesel % Unit 14 Diesel % Unit 15 Diesel % % Mountainview Remaining Life Span: DATE OF FIRM DATE FULLY TOTAL AGE RMNG WTDREM UNIT LOCN DESCRIPTION OPERATION DEPRECIATED WEIGHTING LIFE SPAN fyrs) LIFE SPAN LIFE SPAN WTDAGE 3 Mountainview 12/31/05 12/31/35 50% Mountainview 12/31/05 12/31/35 50% % Peaker Generation Remaining Life Span: DATE OF FIRM DATE FULLY TOTAL AGE RMNG WTDREM UNIT LOCN DESCRIPTION OPERATION DEPRECIATED WEIGHTING LIFE SPAN (YRS) LIFE SPAN LIFE SPAN WTDAGE 1 3xxx Peakers 08/01/07 07/31/32 20% xxx Peakers 08/01/07 07/31/32 20% xxx Peakers 08/01/07 07/31/32 20% xxx Peakers 08/01/07 07/31/32 20% xxx Peakers 11/01/12 11/01/37 20% %

27 Exhibit No. SCE-10 / Results of Operations / Vol. 02 / Ch. Ill UNIT 2 3 UNIT LOCN DESCRIPTION SONGS Unit 2 SONGS Unit 3 LOCN DESCRIPTION P VNGS Unit 1 P VNGS Unit 2 P VNGS Unit 3 DATE OF FIRM OPERATION DATE OF FIRM OPERATION SONGS Remaining Life Span: DATE FULLY RMNG WTDREM DEPRECIATED WEIGHTING LIFE SPAN LIFE SPAN 02/16/22 50% /15/22 50% % PVNGS Remaining Life Span: DATE FULLY DEPRECIATED WEIGHTING 06/01/ % 04/24/ % 11/25/ % 100% RMNG LIFE SPAN WTDREM LIFE SPAN Solar PV Remaining Life Span: DATE OF FIRM DATE FULLY TOTAL AGE RMNG WTDREM UNIT MW Escalation Factor OPERATION DEPRECIATED WEIGHTING LIFE SPAN fyrs) LIFE SPAN LIFE SPAN WTDAGE SPVP002 - Chino /24/09 09/24/29 1.3% SPVP003 - Rialto /19/10 07/19/30 1.4% SPVP005 - Redlara /27/10 12/27/30 4.0% SPVP006 - Ontario /10/11 01/10/31 2.9% SPVP007 - Redlara /29/10 12/29/30 3.7% SPVP008 - Ontario /30/10 12/30/30 3.2% SPVP009 - Ontario /10/11 01/10/31 1.6% SPVP010 - Fontarc /18/11 05/18/31 2.7% SPVP011 - Redlara /10/11 11/10/31 6.0% SPVP012 - Ontario /29/10 12/29/30 0.9% SPVP013 - Redlara /15/11 09/15/31 5.9% SPVP015 - Fontarc /19/11 12/19/31 5.6% SPVP016 - Redlara /18/11 05/18/31 2.1% SPVP017 - Fontarc /14/11 12/14/31 5.4% SPVP018 - Fontarc /23/11 05/23/31 2.3% SPVP022 - Redlara /15/10 11/15/30 3.5% SPVP023 - Fontarc /12/11 05/12/31 4.6% SPVP026 - Rialto /26/11 08/26/ % SPVP027 - Rialto /27/12 11/27/32 3.1% SPVP028 - SanBei /20/11 12/20/31 5.8% SPVP032 - Ontario /22/11 12/22/31 2.1% SPVP033 - Ontario /12/11 12/12/31 1.5% SPVP042 - Porterv: /28/10 12/28/30 7.9% SPVP044 - Perris /14/12 09/14/ % %

28 15 S C E - 1 0, V o l u m e 2, R e s u lt s o f O p e r a t io n s D e p r e c i a t i o n S t u d y Witness: Rick Fisher A c c o u n t I m p a c t o f L i f e a n d N e t S a lv a g e P a r a m e t e r s

29 16 Workpaper - Southern California Edison / 2015 GRC - APPLICATION Southern C alifornia Edison C alculation o f Expense Im pact Transmission and Distribution ($ 000's) Authorized Change due Change due Proposed TRANSMISSION PLANT Accrual to Life to Net Salvage Accrual Easements 2, , Structures and Improvements 8, , Station Equipment 115,079 (5,824) 11, ,119 Total Transmission Substations 124,044 (5,681) 12, , Towers and Fixtures 19,614 (202) 5,045 24, Poles and Fixtures 20,707 3,172 2,539 26, Overhead Conductors & Devices 25,205 (3,493) 4,182 25, Underground Conduit Underground Conductors & Devices 5, (356) 5, Roads and Trails 727 (74) Total Transmissions Lines 72,927 (564) 11,410 83,773 Total Transmission Plant 199,443 (6,245) 23, ,902 DISTRIBUTION PLANT Easements Structures and Improvements 13,979 (690) - 13, Station Equipment 55,120 (2,448) 5,064 57,736 Total Distribution Substations 70,038 (3,138) 5,064 71, Poles, Towers and Fixtures 116,845 (3,300) 15, , Overhead Conductors & Devices 55,120 1,422 5,094 61, Underground Conduit 30,015 (2,215) 6,215 34, Underground Conductors & Devices 147,468 (1,329) 25, , Line Transformers 111,213 (16,854) 24, , Services 55,790 (4,514) 16,191 67, Meters 47,549 (406) - 47, Street Lighting & Signal Systems 20, ,950 25,860 Total Distribution Lines 584,576 (26,862) 98, ,979 Total Distribution Plant 654,614 (30,000) 103, ,943 Total Transmission and Distribution 854,057 (36,245) 127, ,845

30 17 S C E - 1 0, V o l u m e 2, R e s u lt s o f O p e r a t io n s D e p r e c i a t i o n S t u d y Witness: Rick Fisher T r a n s m i s s i o n a n d D i s t r i b u t i o n C o m p o s it e R a t e C a lc u la t io n s

31 00 Exhibit No. SCE-10 / Results of Operations / Vol. 02 / Ch. Ill GROSS PLANT January 1, 2013 (1) TR A N S M IS S IO N P L A N T 352 Structures and Improvements 376,680, Station Equipment 3,981,957,655 Total Transmission Substations 4,358,637, Towers and Fixtures 772,203, Poles and Fixtures 603,692, Overhead Conductors & Devices 706,020, Underground Conduit 48,517, Underground Conductors & Devices 208,167, Roads and Trails 43,038,583 Total Transmissions Lines 2,381,639,615 Total Transmission (excl land) 6,740,277,322 S TR IBU TIO N P L A N T 361 Structures and Improvements 436,830, Station Equipment 1,761,037,883 Total Distribution Substations 2,197,868, Poles, Towers and Fixtures 1,655,027, Overhead Conductors & Devices 1,195,653, Underground Conduit 1,389,563, Underground Conductors & Devices 4,402,043, Line Transformers 3,022,095, Services 1,172,062, Meters 888,759, Street Lighting & Signal Systems 753,720,538 Total Distribution Lines 14,478,924,549 Total Distribution (excl land) 16,676,793,181 Total T&D (excl land) 23,417,070,503 P ro p o s e d and A u th o riz e d SCE G RC T& D D e p re c ia tio n R a tes D epreciation Rates Proposed Authorized Proposed Authorized Proposed Authorized Proposed (Authorized Proposed 2.49% 3.23% 2.56% 2.56% 2.50% 2.50% 2.38% 2.38% 2.53% 2.70% 1.40% 2.78% 2.45% 2.85% 2.54% 3.04% 2.89% 3.04% 2.68% 1.56% 2.76% 2.46% 2.82% 2.54% 2.98% 2.85% 3.00% 3.27% 3.30% 2.80% 2.42% 2.81% 2.41% 3.24% 2.54% 3.17% 4.85% 2.83% 4.20% 3.78% 4.32% 3.90% 4.29% 3.43% 4.38% 4.94% 3.48% 4.11% 3.53% 4.19% 3.61% 3.76% 3.57% 3.67% 1.93% 1.96% 1.92% 1.67% 1.94% 1.69% 1.70% 1.70% 1.73% 3.31% 3.55% 3.90% 3.90% 3.87% 3.87% 2.81% 2.81% 2.65% 1.56% 1.46% 1.56% 1.56% 1.70% 1.70% 1.69% 1.69% 1.52% 4.11% 3.20% 3.60% 3.19% 3.66% 3.24% 3.56% 3.06% 3.52% 3.19% 2.14% 3.06% 2.72% 3.12% 2.79% 3.19% 2.92% 3.18% 3.05% 2.96% 3.30% 3.30% 3.15% 3.15% 3.20% 3.20% 3.04% 2.74% 1.03% 3.03% 2.89% 3.04% 2.90% 3.13% 3.13% 3.28% 2.80% 1.41% 3.08% 2.97% 3.06% 2.95% 3.14% 3.14% 3.23% 6.17% 4.13% 8.52% 6.86% 8.68% 7.05% 8.47% 7.06% 7.81% 5.50% 4.63% 4.70% 4.12% 4.83% 4.26% 5.57% 4.61% 5.15% 3.07% 2.60% 2.90% 2.18% 2.16% 2.16% 2.16% 2.16% 2.45% 3.93% 7.33% 5.32% 4.85% 5.34% 4.88% 5.04% 3.35% 3.90% 6.03% 2.65% 5.01% 4.47% 4.85% 4.32% 4.16% 3.68% 3.93% 5.95% 4.05% 6.37% 5.33% 6.48% 5.43% 5.29% 4.76% 5.76% 4.69% 2.80% 4.41% 4.41% 4.46% 5.50% 5.34% 5.35% 5.30% 2.26% 2.58% 2.86% 2.86% 3.57% 3.01% 3.05% 2.73% 3.43% 4.79% 4.52% 5.24% 4.59% 5.22% 4.68% 4.95% 4.04% 4.53% 4.53% 4.14% A A 4.11% 3.54% A B 4.95% 4.41% A 4.38% 3.90% A D 4.93% 4.41% A 4.46% 3.98% A 4.71% 4.27% A 3.92% 3.63% A 4.36% 4.02% A Figure III-4

32 CD Past and Current SCE GRC Proposed T&D Net Salvage Rates Exhibit No. SCE-10 / Results of Operations / Vol. 02 / Ch. Ill TRANSMISSION PLANT 352 Structures and Improvements 353 Station Equipment Total Transmission Substations 354 Towers and Fixtures 355 Poles and Fixtures 356 Overhead Conductors & Devices 357 Underground Conduit 358 Underground Conductors & Devices 359 Roads and Trails Total Transmissions Lines Total Transmission (excl land) DISTRIBUTION PLANT 361 Structures and Improvements 362 Station Equipment Total Distribution Substations 364 Poles, Towers and Fixtures 365 Overhead Conductors & Devices 366 Underground Conduit 367 Underground Conductors & Devices 368 Line Transformers 369 Services 370 Meters 373 Street Lighting & Signal Systems Total Distribution Lines Total Distribution Plant (excl land) Total T&D (excl land) GROSS PLANT Net Salvage Rates January 1, (1) Proposed Authorized Proposed Authorized Proposed Authorized Proposed Authorized Proposed 376,680,053-35% -30% -40% -40% -40% -40% -30% -30% -35% 3,981,957,655-5% 15% -5% 5% -5% 5% -10% -5% -15% 4,358,637,708-8% I 11% -8% I 1% I -8% I 1% I -12% I -7% I -17% 772,203,666-85% -60% -85% -70% -85% -70% -85% -70% -100% 603,692, % -50% -85% -70% -85% -70% -85% -70% -85% 706,020,711-95% -50% -95% -80% -95% -80% -85% -80% -100% 48,517,033 0% 0% -10% 0% -10% 0% 0% 0% 0% 208,167,367-30% -30% -30% -30% -30% -30% -20% -20% -15% 43,038,583 0% 0% 0% 0% 0% 0% 0% 0% 0% 2,381,639,615-87% I -50% -80% I -67% -80% I -67% -76% I -66% -85% 6,740,277,322-36% -10% -33% -23% -33% -23% -34% -28% -41% 436,830,749-20% -10% -20% -20% -20% -20% -25% -25% -25% 1,761,037,883-15% 25% -15% -10% -15% -10% -20% -20% -30% 2,197,868,632-16% I 18% -16% I -12% -16% I -12% -21% I -21% -29% 1,655,027,118-47% -64% A A -175% -100% -250% -190% -250% -190% -200% -190% -225% 1,195,653, % -110% -120% -100% -120% -100% -110% -110% -125% 1,389,563,200-30% -25% -20% -20% -20% -20% -20% -20% -40% 4,402,043,706-60% -55% -70% -60% -70% -60% -60% -60% -80% 3,022,095,507-10% 10% -10% 0% -10% 0% -10% 0% -20% 1,172,062, % -60% -100% -75% -100% -75% -100% -85% -125% 888,759,132-25% -25% -10% -10% -10% -10% -5% -5% -5% 753,720,538-5% -15% -30% -15% -30% -15% -30% -20% -40% 14,478, 924,549 16,676, 793,181-63% -57% -45% -36% -74% - 66 % -58% -52% -74% - 66 % -58% -52% -64% -58% -59% -54% -81% -74% 23,417, 070, % -57% -43% -57% -43% -52% A A A A A A A A B D Figure III-5

33 20 Workpaper - Southern California Edison / 2015 GRC - APPLICATION g a? ; si *? S. I a 3 i S *-' 'i's«*co 'i.' 1 g I 1 1 S g.:. i Ss s ' X S ' u u i S M l ^ s ' X <. s :. 3 m. s j. i sssigsisss S 8 S 8 tf S3 S S3 Is 5 1 I! g g!ss s s l ^ s! S3 Sfe? lip s' i S' I I t S " k 8 5 S i!! '.. s ' \ Q J shsstfgs i i m i i i ;. '. g. '. n :. s 's f j..2i it 1 1 I s 8