December 14, Modifications to Regulatory Mechanisms Established in Accordance with Decision and Decision

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2 Akbar Jazayeri Director of Revenue and Tariffs December 14, 2005 ADVICE 1940-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Modifications to Regulatory Mechanisms Established in Accordance with Decision and Decision Southern California Edison Company (SCE) hereby submits for filing the following changes to its tariff schedules as described in detail below. The revised tariff sheets are listed on Attachment A and are attached hereto. PURPOSE The purpose of this advice filing is to request Commission approval to modify certain regulatory mechanisms approved in SCE s 2003 General Rate Case Decision (D.) and the Mohave Employee-Related Memorandum Account approved in D SCE most likely will not receive a Commission decision in its 2006 General Rate Case (GRC) (A.) until the end of January Therefore, modifications to these regulatory mechanisms are required to ensure the continued operation of the regulatory mechanisms prior to the effective date of SCE s 2006 GRC decision. Specifically, SCE respectfully requests to: 1. Increase the authorized generation base revenue requirement (AGBRR) to $686 million to reflect two SONGS 2&3 Refueling and Maintenance Outages for 2006 at currently authorized amounts and continue the authorized distribution base revenue requirement (ADBRR) of $2.770 billion; 2. Extend the termination date for the Mohave Employee-Related Memorandum Account; 3. Continue the currently authorized funding, effective January 1, 2006, for: a) the Electric Energy Transaction Administration Memorandum Account; b) the Research, Development and Demonstration Adjustment Clause and, c) the Air Conditioning Cycling Device Balancing Account. P.O. Box Walnut Grove Ave. Rosemead, California (626) Fax (626)

3 ADVICE 1940-E (U 338-E) December 14, 2005 BACKGROUND SCE filed its 2006 GRC on December 21, The Assigned Commissioner s Ruling and Scoping Memo Establishing Scope, Schedule and Procedures for Proceeding (Schedule) was issued on March 15, The Schedule provided that the Administrative Law Judge would issue a Proposed Decision (PD) on December 2, 2005 and a final Commission decision would be issued at the first Commission Conference in January As of the date of this advice filing, a PD has not been issued. On August 2, 2005, SCE filed a Motion to Establish a GRC Revenue Requirement Memorandum Account (GRC RRMA). In this motion, SCE requested the Commission to authorize the GRC RRMA to track the revenue requirement ultimately adopted by the Commission in its 2006 GRC during the period between January 9, 2006 or the first Commission Conference in 2006, whichever is earlier, and the date a final decision is adopted in the proceeding to ensure that SCE shareholders or customers are not harmed due to a delay in the Commission issuing a final decision. SCE has not yet received a Commission decision on this motion. With the delay in the issuance of the PD, it is now unlikely that the final Commission decision will be issued in the first Commission Conference on January 12, TARIFF MODIFICATIONS Due to the anticipated delay in the 2006 GRC decision and the uncertainty of approval of a 2006 GRC RRMA, SCE proposes to modify the following regulatory mechanisms. 1. Preliminary Statement YY Base Revenue Requirement Balancing Account (BRRBA) SCE requests, effective January 1, 2006, to: (1) continue the authorized distribution base revenue requirement of $2.770 billion and (2) increase the generation base revenue requirement to $686 million to include two SONGS 2&3 Refueling and Maintenance Outages (RFO) as is currently forecast for calendar year The first RFO is scheduled to begin in January of 2006 and the second is scheduled to begin in October of The amount currently authorized for each RFO is $ (see Attachment B) million (2005$). SCE has updated the Generation Monthly Distribution Percentages to be applied to the 2006 SONGS 2&3 nuclear refueling outage revenue requirement such that, the first refueling outage revenue requirement is allocated evenly between January and February 2006 and the second refueling outage is allocated evenly between October and November SCE will include the revenue requirement change to its Authorized Base Revenue Requirement (ABBR) in rate levels with its next ERRA consolidation advice filing.

4 ADVICE 1940-E (U 338-E) December 14, Preliminary Statement, Part N.69, Electric Energy Transaction Memorandum Account SCE requests the Commission to continue the currently authorized funding of $9.503 million, effective January 1, Preliminary Statement, Part N.72, Mohave Employee-Related Memorandum Account (MERMA) SCE requests the Commission to extend the date for SCE to record expenses related to worker protection benefits for Mohave personnel from December 31, 2005 to the effective date of the 2006 GRC. D established the MERMA to provide SCE the opportunity to recover employee-related expenses incurred before January 1, 2006 with the expectation that expenses incurred after December 31, 2005 would be addressed in SCE s 2006 GRC decision. Since it is expected that SCE s 2006 GRC decision will be delayed, this extension is necessary to ensure the opportunity to recover any Mohave employee-related expenses that may be incurred from January 1, 2006 through the effective date of the 2006 GRC 4. Preliminary Statement, Part X Research, Development and Demonstration Adjustment Clause (RDAC) SCE requests the Commission to continue the currently authorized funding of $1.658 million, effective January 1, Additionally, SCE requests the Commission to extend the date for the Carry Over of any unspent funds as of December 31 of each year and the Carry Forward of any funds spent as of December 31 of each year from through the end of 2005 to until the effective date of the next General Rate Case. 5. Preliminary Statement, Part VV Air Conditioning Cycling Device Balancing Account (ACCDBA) SCE requests the Commission to continue the currently authorized funding of $3.274 million, effective January 1, Additionally, SCE requests that disposition of ACCDBA recorded balance include that recorded from May 22, 2003 through the effective date of the 2006 GRC. Finally, SCE requests the Commission to extend the date for the Carry Over of any unspent funds as of December 31 of each year and the Carry Forward of any funds spent as of December 31 of each year from through the end of 2005 to until the effective date of the next General Rate Case. If the Commission issues a decision authorizing the establishment of the 2006 GRC RRMA, SCE will revise this advice filing accordingly.

5 ADVICE 1940-E (U 338-E) December 14, 2005 EFFECTIVE DATE SCE requests this advice filing become effective on January 1, NOTICE Anyone wishing to protest this advice filing may do so by letter via U.S. Mail, facsimile, or electronically, any of which must be received by the Energy Division and SCE no later than 20 days after the date of this advice filing. Protests should be mailed to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California jjr@cpuc.ca.gov and jnj@cpuc.ca.gov Copies should also be mailed to the attention of the Director, Energy Division, Room 4004 (same address above). In addition, protests and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of: Akbar Jazayeri Director of Revenue and Tariffs Southern California Edison Company 2244 Walnut Grove Avenue Rosemead, California Facsimile: (626) AdviceTariffManager@sce.com Bruce Foster Vice President of Regulatory Operations c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2040 San Francisco, California Facsimile: (415) Karyn.Gansecki@sce.com There are no restrictions on who may file a protest, but the protest shall set forth specifically the grounds upon which it is based and shall be submitted expeditiously.

6 ADVICE 1940-E (U 338-E) December 14, 2005 In accordance with Section III, Paragraph G, of General Order No. 96-A, SCE is serving copies of this advice filing to the interested parties shown on the attached service list and A and A Address change requests to the attached GO 96-A Service List should be directed to (626) or by electronic mail to AdviceTariffManager@sce.com. For changes to all other service lists, please contact the Commission s Process Office at (415) or by electronic mail at Process_Office@cpuc.ca.gov. Further, in accordance with Public Utilities Code Section 491, notice to the public is hereby given by filing and keeping the advice filing open for public inspection at SCE s corporate headquarters. To view other SCE advice letters filed with the Commission, log on to SCE s web site at For questions, please contact Michael Parise at (626) or by electronic mail at Michael.Parise@sce.com. Southern California Edison Company AJ:mm Enclosures Akbar Jazayeri

7 CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER FILING SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/cpuc Utility No.: Southern California Edison Company (U 338-E) Utility type: Contact Person: James Yee! ELC " GAS Phone #: (626) " PLC " HEAT " WATER EXPLANATION OF UTILITY TYPE ELC = Electric GAS = Gas PLC = Pipeline HEAT = Heat WATER = Water (Date Filed/ Received Stamp by CPUC) Advice Letter (AL) #: 1940-E Subject of AL: Modifications to Regulatory Mechanisms Established in Accordance with Decision and Decision Keywords (choose from CPUC listing): Compliance, GRC - General Rate Case, Memorandum Account AL filing type: " Monthly " Quarterly " Annual! One-Time " Other If AL filed in compliance with a Commission order, indicate relevant Decision/ #: D and D Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: Summarize differences between the AL and the prior withdrawn or rejected AL 1 : Required? " Yes! No Requested effective date: 1/1/06 No. of tariff sheets: 11 Estimated system annual revenue effect: (%): Estimated system average rate effect (%): When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting). Tariff schedules affected: Service affected and changes proposed 1 : Preliminary Statement Part N, X, VV, and Y, and Table of Contents Pending advice letters that revise the same tariff sheets: 1 Discuss in AL if more space is needed.

8 Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this filing, unless otherwise authorized by the Commission, and shall be sent to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Ave., San Francisco, CA and Akbar Jazayeri Director of Revenue and Tariffs Southern California Edison Company 2244 Walnut Grove Avenue Rosemead, California Facsimile: (626) Bruce Foster Vice President of Regulatory Operations c/o Karyn Gansecki Southern California Edison Company 601 Van Ness Avenue, Suite 2040 San Francisco, California Facsimile: (415)

9 Public Utilities Commission 1940-E Attachment A Cal. P.U.C. Sheet No. Title of Sheet Cancelling Cal. P.U.C. Sheet No. Revised E Preliminary Statement Part N Revised E* Revised E Preliminary Statement Part N Revised E Revised E Preliminary Statement Part N Revised E Revised E Preliminary Statement Part X Revised E Revised E Preliminary Statement Part X Revised E Revised E Preliminary Statement Part VV Revised E Revised E Preliminary Statement Part VV Original E Revised E Preliminary Statement Part YY Revised E** Revised E Preliminary Statement Part YY Revised E Revised E Table of Contents Revised E Revised E Table of Contents Revised E 1

10 Attachment B SONGS 2&3 Refueling (SCE Share Only) Thousands of Dollars 1. Labor (2000$) 4, Nonlabor (2000$) 35,100 39, Escalated 4. Labor (2005$) 5, Nonlabor (2005$) 38,993 44, Payroll Taxes 168 Total Per Refueling 44, Total Per Refueling w/ff&u 44,949 Page 1 of 1

11 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E* PRELIMINARY STATEMENT Sheet 4 N. MEMORANDUM ACCOUNTS 2. Definitions. Specified Project Section Interest Bearing No. Specified Project Memorandum Account* (68) Distributed Energy Resources Memorandum Account (DERMA) Yes (69) Electric Energy Transaction Administration Memorandum Account (EETAMA) Yes (70) Quarterly Compliance Filings Audit Expense Memorandum Account (QCFAEMA) Yes (71) Not Used (72) Mohave Employee-Related Memorandum Account (MERMA) Yes (73) Risk Management Memorandum Account Yes (74) DWR Franchise Fee Obligation Memorandum Account Yes (75) Not Used (76) Not Used (77) Net Energy Metering Memorandum Account (NEMMA) Yes (78) California Power Exchange Wind-Up Charge Memorandum Account (PXWUC) Yes (79) Surcharge Revenue Memorandum Account (SRMA) Yes (80) Distributed Generation Implementation Cost Memorandum Account (DGICMA) Yes (81) Bill Format Modification Memorandum Account (BFMMA) Yes * Interest shall accrue monthly to interest-bearing Memorandum Accounts by applying the Interest Rate to the average of the beginning and ending balance. ** Interest shall accrue monthly to credit balances only. See specific memorandum accounts for more information. 4H12

12 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 103 N. MEMORANDUM ACCOUNTS 69. Electric Energy Transaction Administration Memorandum Account The purpose of the Electric Energy Transaction Administration Memorandum Account (EETAMA) is to record electricity procurement-related administration and system costs, effective January 1, The EETAMA is established pursuant to D , as modified by Ordering Paragraph No. 13 of D Costs recorded in the EETAMA shall exclude any EETA costs reflected in SCE s authorized rate levels. Therefore, effective May 22, 2003, SCE shall no longer record amounts associated with Scheduling and Dispatching of QF and Interutility Contracts or Interutility Contract Administration. SCE shall maintain the EETAMA by making entries at the end of each month as follows: a. A debit entry for costs incurred to procure, dispatch, settle, and administer procurement transactions; b. A credit entry equal to the result of multiplying the EETA authorized amount by the applicable Distribution related MDP as set forth in Preliminary Statement, Part YY; and CPUC Authorized EETA Amounts in D Effective Date ($000) May 22, ,870 January 1, ,155 January 1, ,503 January 1, ,503 (N) c. A debit entry equal to the average balance in the EETAMA multiplied by onetwelfth of the rate on three-month Commercial Paper as reported in the Federal Reserve Statistical Release, H.15 or its successor publication. Reasonableness of amounts recorded in the EETAMA shall be determined in SCE s April 1 st ERRA Reasonableness proceedings. 103H12

13 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Cal. PUC Sheet No. PRELIMINARY STATEMENT Sheet 105 N. MEMORANDUM ACCOUNTS 72. Mohave Employee-Related Memorandum Account (MERMA). The purpose of the Mohave Employee-Related Memorandum Account (MERMA) is to record costs related to worker protection benefits for Mohave personnel incurred before the effective date of the 2006 GRC, as authorized in Commission Decision No Monthly entries to the MERMA shall consist of recorded worker protection benefit expenses associated with employees impacted by the Mohave shutdown and shall be determined as follows: (a) (b) (c) (d) (e) (f) All severance payments; Plus: retraining expenses; Plus: early retirement expenses; Plus: extended health coverage expenses; Plus: outplacement expenses; Plus: all other employee-related expenses as approved by the Commission. Interest shall accrue monthly to MERMA by applying one-twelfth of the three month Commercial Paper rate (expressed as an annual rate) as reported by the Federal Reserve to the average monthly MERMA balance. In addition, all payroll taxes associated with the above expenses will be recorded in the MERMA. Disposition of amounts recorded in the MERMA shall be determined in a regulatory proceeding authorized by the Commission. 105H13

14 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E** PRELIMINARY STATEMENT Sheet 1 YY. Base Revenue Requirement Balancing Account (BRRBA) 1. Purpose: The purpose of the Base Revenue Requirement Balancing Account (BRRBA) is to record: 1) the difference between SCE s authorized distribution and generation base revenue requirements and recorded revenues from authorized distribution and generation rates; and 2) other amounts as authorized by the Commission. The BRRBA is established in accordance with D Definitions: a. Authorized Distribution Base Revenue Requirement: The Authorized Distribution Base Revenue Requirement (ADBRR) is the most current Commission-authorized Distribution-related base revenue requirement. The current ADBRR is listed below: Table A Authorized Distribution Base Revenue Requirement ($000) Effective Date ADBRR May 22, 2003 $ 2,432,380 January 1, 2004 $ 2,665,448 January 1, 2005 $ 2,770,383 January 1, 2006 $ 2,770,383 b. Authorized Generation Base Revenue Requirement: The Authorized Generation Base Revenue Requirement (AGBRR) is the most current Commission-authorized Generation-related base revenue requirement. The current AGBRR is listed below: Table B Authorized Generation Base Revenue Requirement ($000) Effective Date AGBRR May 22, 2003 $ 401,149 January 1, 2004 $ 675,852 September 7, 2004 $ 671,712 January 1, 2005 $ 596,049 January 1, 2006 $ 685,946 Table C SONGS Refueling Amounts Included in AGBRR ($000) AGBRR Number of Total Amount of Effective Without Refuelings included Refuelings included Date Refueling in AGBRR in AGBRR AGBRR May 22, 2003 $ 401,149 0 $ 0 $ 401,149 January 1, 2004 $ 588,690 2 $ 87,162 $ 675,852 September 7, 2004 $ 584,550 2 $ 87,162 $ 671,712 January 1, 2005 $ 596,049 0 $ 0 $ 596,049 January 1, 2006 $ 596,049 2 $ 89,897 $ 685,946 (N) (N) (N) 1H13

15 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 4 YY. Base Revenue Requirement Balancing Account (BRRBA) 2. Definitions: g. Monthly Distribution Percentages (MDPs) MDPs are the estimated monthly billed and unbilled distribution rate revenues, expressed as a percentage of annual distribution and generation revenues. 1. Distribution MDPs January 8.60% February 7.60% March 8.60% April 7.70% May 8.10% June 8.60% July 8.00% August 9.30% September 8.30% October 8.70% November 8.40% December 8.10% Total % 2. Generation MDPs Applied To Applied To Applied To Applies To AGBRR Less Authorized Refuelings Authorized Refuelings Authorized Refuelings Refuelings In / In / In 2006 January 6.10% 0.0% 0.00% 25.00% February 5.30% 25.0% 0.00% 25.00% March 6.60% 25.0% 0.00% 0.00% April 5.90% 0.0% 0.00% 0.00% May 6.20% 0.0% 0.00% 0.00% June 8.80% 0.0% 0.00% 0.00% July 11.70% 0.0% 0.00% 0.00% August 14.50% 0.0% 0.00% 0.00% September 12.70% 0.0% 0.00% 0.00% October 10.60% 25.0% 0.00% 25.00% November 6.00% 25.0% 0.00% 25.00% December 5.60% 0.0% 0.00% 0.00% Total % % 0.00% % (N) (N) 1/ Based on forecast of when refueling will occur. h. BRRBA Distribution and Generation Unbilled Revenues Unbilled Revenues are accrued ( earned revenue for financial statement purposes) BRRBA revenues associated with electric customer kwh usage that has not yet been billed by SCE. 4H15

16 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 1 X. Research, Development and Demonstration Adjustment Clause (RDDAC) 1. Purpose: The purpose of the Research, Development and Demonstration Adjustment Clause (RDDAC) is to record the difference between: (1) the authorized expenditures associated with Research, Development and Demonstration (RD&D) programs reflected in the Authorized RD&D Funding Level; and (2) the recorded expenditures associated with RD&D programs. 2. Definitions. a. Authorized Funding Level: The Authorized Funding Level for RD&D programs is the amount authorized by the Commission to be reflected in Distribution rates. Such amount shall exclude Franchise Fees and Uncollectible Accounts (FF&U). The 2005 amount shall be determined in the 2005 Post Test Year Ratemaking advice letter to be submitted to the Commission by November 1, ($000) Effective Date Authorized Level May 22, 2003 $1,573 January 1, 2004 $1,602 January 1, 2005 $1,658 January 1, 2006 $1,658 (N) b. Franchise Fees and Uncollectible Accounts: Franchise Fees and Uncollectible Accounts shall be the rate derived from the Utility's most recent general rate case decision to provide for franchise fees and uncollectible accounts expense. c. Interest Rate: The Interest Rate shall be the most recent annual interest rate on Commercial Paper (prime, three months), published in the Federal Reserve Statistical Release, G.13. Should publication of the interest rate on Commercial Paper (prime, three months), be discontinued, interest will so accrue at the rate of the most recent annual interest rate on Commercial Paper which most closely approximates the rate that was discontinued, and which is published in the Federal Reserve Statistical Release, G.13, or its successor publication. d. Monthly Distribution Percentages The Monthly Distribution Percentages (MDPs) Applicable to the RD&D Authorized Funding Level shall be the Distribution MDPs included in Preliminary Statement YY-Base Revenue Requirement Balancing Account. 1H13

17 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California (U 338-E) Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 2 X. Research, Development and Demonstration Adjustment Clause (RDDAC) 3. Research, Development and Demonstration Adjustment Account (RDDAA) The Utility shall maintain a Research, Development and Demonstration Adjustment Account. Entries to be made to the RDDAA at the end of each month will be determined from the following calculations: a. Expenditures for RD&D programs recorded during the month; b. Less: The result of Multiplying the Authorized Funding Level by the applicable MDP. If the above calculation produces a positive amount (overexpenditure), such amount will be debited to a RDDAA. If the calculation produces a negative amount (underexpenditure), such amount will be credited to the RDDAA. Interest on the RDDAA shall be calculated annually by applying the Interest Rate to the average of the beginning-of-year and end-of-year balances. The interest amount shall then be returned to ratepayers by transferring such amounts to the distribution Sub- Account of the BRRBA. Due to the one-way nature of the RDDAA, interest will only be calculated when the average balance is a negative (underexpended) amount. c. Carry Over: Any unspent funds as of December 31 of each year shall be carried over in the RDDAA into the Subsequent calendar year until the effective date of the next General Rate Case. d. Carry Forward: Any funds spent as of December 31 of each year which are in excess of the Authorized Funding Level for that year, shall be carried forward in the RDDAA to the subsequent calendar year until the effective date of the next General Rate Case. The ratemaking treatment for any underexpended balance in the RDDAA as of the effective date of SCE s 2006 GRC shall be submitted by advice letter filing. The Utility shall not seek rate recovery of any overexpenditure of the Authorized Funding Level for RD&D programs. The underexpended balance shall be transferred to the Public Purpose Programs Adjustment Mechanism (PPPAM) upon Commission approval. 2H13

18 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 1 VV. Air Conditioning Cycling Device Balancing Account (ACCDBA) 1. The purpose of the Air Conditioning Cycling Device Balancing Account (ACCDBA) is to record the difference between: 1) actual costs incurred by SCE for new or replacement air conditioning load control devices and installation of such devices associated with its Air Conditioner Cycling Program (ACCP), and 2) the authorized level of ACCP expenditures. The ACCDBA is a one-way balancing account, and is established in accordance with Ordering Paragraph No. 4 of D Definitions a. ACCP Authorized Funding Level The ACCP Authorized Funding Level is the annual amount of ACCP expenditures authorized by the Commission. Such amount shall exclude Franchise Fees and Uncollectible Accounts Expense. The 2005 amount shall be determined in the 2005 Post Test Year Ratemaking advice letter to be submitted to the Commission by November 1, Effective Date ($000) Authorized Level May 22, 2003 $3,136 January 1, 2004 $3,195 January 1, 2005 $3,274 January 1, 2006 $3,274 b. Effective Date The Effective Date of the ACCDBA is May 22, c. Interest Rate The Interest Rate shall be the most recent annual interest rate on Commercial Paper (prime, three months), published in the Federal Reserve Statistical Release, G.13. Should publication of the interest rate on Commercial Paper (prime, three months) be discontinued, interest shall accrue at the rate of the most recent annual interest rate on Commercial Paper that most closely approximates the rate that was discontinued, and which is published in the Federal Reserve Statistical Release G.13, or its successor publication. d. Monthly Distribution Percentages The Monthly Distribution Percentages (MDPS) applicable to the ACCP Authorized funding level shall be the distribution MDPS included in Preliminary Statement YY Base Revenue Requirement Balancing Account. 3. Carry-Over and Carry-Forward Amounts a. Carry-Over Amounts Any unspent ACCP funds as of December 31 of each year shall be carried over in the account into the subsequent calendar year through the effective date of the next General Rate Case. b. Carry-Forward Amounts Any ACCP funds spent as of December 31 of each year, which are in excess of authorized amounts for that year, shall be carried forward in the account to the subsequent calendar year through the effective date of the next General Rate Case. (N) 1W15

19 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Original Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 2 VV. Air Conditioning Cycling Device Balancing Account (ACCDBA) 4. Operation of the ACCDBA Entries to the ACCDBA shall be made monthly as follows: a. Recorded ACCP expenditures for air conditioning load control equipment and installation; b. Less: The result of multiplying the ACCP Authorized Funding Level by the applicable MDP. If the above calculation results in a positive amount (over-expenditure), such amount shall be debited to the ACCDBA. If the above calculation results in a negative amount (under-expenditure), such amount shall be credited to the ACCDBA. Interest Expense shall be calculated annually by applying the Interest Rate to the average balance of the beginning-of-year and end-of-year balances in the ACCDBA. Since the ACCDBA is a one-way balancing account, Interest Expense shall only be calculated when the average balance in the ACCDBA is a negative (under-expended) amount. Annual Interest amounts shall be immediately returned to customers by transferring such amounts to the distribution sub-account of the BRRBA. 5. Disposition of ACCDBA Balances By May 1, 2006 SCE shall submit an advice letter to the Commission that includes the recorded operation of the ACCDBA for the period May 22, 2003 through the effective date of the 2006 GRC and a proposal to dispose of any remaining overcollected balance (under-expenditure). 2W12

20 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E TABLE OF CONTENTS Sheet 1 Cal. P.U.C. Sheet No. TITLE PAGE E TABLE OF CONTENTS - RATE SCHEDULES E TABLE OF CONTENTS - LIST OF CONTRACTS AND DEVIATIONS E TABLE OF CONTENTS - RULES E TABLE OF CONTENTS - BASELINE REGIONS E TABLE OF CONTENTS - SAMPLE FORMS E E PRELIMINARY STATEMENT: A. Territory Served E B. Description of Service E C. Procedure to Obtain Service E D. Establishment of Credit and Deposits E E. General E F. Symbols E G. Gross Revenue Sharing Mechanism E E H. Baseline Service E I. NOT IN USE...-E J. Employee-Related Balancing Account E K. Nuclear Decommissioning Adjustment Mechanism E L. Performance-Based Ratemaking Exclusions Distribution Adjustment Mechanism E M. Income Tax Component of Contributions E N. Memorandum Accounts E E E E E E E E E O. California Alternative Rates for Energy (CARE) Adjustment Clause E P. Optional Pricing Adjustment Clause (OPAC) E 1H10

21 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E TABLE OF CONTENTS Sheet 2 Cal. P.U.C. Sheet No. PRELIMINARY STATEMENT: (Cont'd) Q. Demand Side Management Adjustment Clause (DSMAC) E E R. Historical Procurement Charge Balancing Account E S. Procurement Energy Efficiency Balancing Account (PEEBA) E T. Electric and Magnetic Fields Measurement Program E U. NOT IN USE...-E V. Hazardous Substance Cleanup Cost Recovery Mechanism E E W. Departing Load and Customer Generation Departing Load (CGDL) Cost Responsibility E E X. Research, Development and Demonstration Adjustment Clause (RDDAC) E Y. Economic Development Adjustment Clause (EDAC) E Z. Family Energy Rate Associates Balancing Account E AA. California Alternate Rates for Energy (CARE) Balancing Account E BB. PBR Distribution Revenue Requirement Adjustment Factor (PDRRAD E CC. PBR Distribution Performance Mechanism (PDPM) E E E DD. Cost Of Capital Trigger Mechanism E EE. Electric Deferred Refund Account (EDRA) E FF. Public Purpose Programs Adjustment Mechanism E E GG. Energy Efficiency Program Adjustment Mechanism (EEPAM E HH. Low Income Energy Efficiency Program Adjustment Mechanism (LIEEPAM) E II. Bond Charge Balancing Account (BCBA) E JJ. Direct Access Cost Responsibility Surcharge Tracking Account E KK. NOT IN USE...-E LL. NOT IN USE...-E MM. Community Choice Aggregation Implementation Cost Balancing Account E NN. NOT IN USE... -E OO. NOT IN USE... -E PP. NOT IN USE... -E QQ. NOT IN USE... -E RR. NOT IN USE... -E SS. NOT IN USE... -E TT. NOT IN USE... -E UU. Late Payment Charge Revenue Balancing Account (LPCRBA) E VV. Air Conditioning Cycling Device Balancing Account (ACCDBA) E WW. Community Choice Aggregation Cost Responsibility... Surcharge Tracking Account E XX. NOT IN USE... -E YY. Base Revenue Requirement Balancing Account (BRRBA) E ZZ. Energy Resource Recovery Account E E AAA. Post Test Year Ratemaking Mechanism (PTYR) E E BBB. Employee Safety and Distribution Reliability Performance Incentive Mechanism (SRPIM) E 2H10