UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION

Transcription

1 UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Southern California Edison Company ) Docket No. ER SOUTHERN CALIFORNIA EDISON COMPANY ANNUAL UPDATE FILING OF THE TRANSMISSION REVENUE BALANCING ACCOUNT ADJUSTMENT October 2014

2 Regulation James A. Cuillier Director FERC Rates & Regulation October 31, 2014 Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission 888 First Street, N.E. Washington, DC Dear Ms. Bose: Pursuant to Section of the Federal Energy Regulatory Commission s ( Commission ) Regulations under the Federal Power Act (18 C.F.R ), Southern California Edison Company ( SCE ) tenders for filing revisions to its Transmission Owner Tariff ( TO Tariff ), FERC Electric Tariff, Volume No. 6, to reflect the annual update of the Transmission Revenue Balancing Account Adjustment ( TRBAA ). The documents submitted with this filing consist of this letter of transmittal and all attachments hereto; the revised TO Tariff reflecting the revised TRBAA and TRBAA rate proposed in this filing in both clean and redline formats; the Prepared Direct Testimony of Lynn Ellen Myers; the relevant Statements required under the Commission s Regulations; and workpapers supporting the revisions proposed herein. Background P.O. Box Walnut Grove Ave. Rosemead, CA The TRBAA is a ratemaking mechanism designed to ensure that all Transmission Revenue Credits are flowed-through to transmission customers. Section 5.5 of the TO Tariff identifies the items subject to the Transmission Revenue Balancing Account ( TRBA ) and sets forth the procedure for revising the TRBAA on an annual basis. The TRBAA is based on the balance in the TRBA as of September 30 of the current year, and a forecast of the Transmission Revenue Credits expected to be received in the following year.

3 Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission Page 2 October 31, 2014 TRBAA The revised TRBAA applicable to retail service is a negative $9,680,424 and the revised retail TRBAA Rate is a negative $ per kilowatt-hour to be effective for retail TO Tariff transmission service rendered on and after January 1, This amount is a $40,534,586 increase from the currently-effective level of negative $50,215,010. The proposed wholesale TRBAA is a negative $9,660,398, an increase of $40,450,729 from the currently-effective level of negative $50,111,127. The increase in the TRBAAs is primarily due to an increase in the balance in the TRBA and a decrease in Transmission Revenue Credits. SCE s TRBAA and TRBAA Rate are described in the Prepared Testimony included with this filing. Revised TO Tariff The revised TRBAA and retail rate change proposed in this filing described above are reflected in the revised Appendices I and III to the TO Tariff submitted with this filing. Effective Date and Waiver As set forth in the TO Tariff, the TRBAA revisions are to become effective on January 1, SCE respectfully requests the Commission to assign an effective date of January 1, 2015 to the TRBAA revisions proposed herein.

4 Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission Page 3 October 31, 2014 Revenue Change The forecast annualized transmission revenue increase resulting from the implementation of the revised TRBAAs and TRBAA Rate by retail rate group and by ETC Customer is as follows: TRBAA REVENUE CHANGE $ Domestic 13,818,879 Lighting, Small & Medium Power 13,623,452 Large Power 11,057,521 Agricultural & Pumping 1,392,447 Street Lighting 353,860 Total Retail 40,246,159 ETC REVENUE CHANGE $ Azusa 78,264 Banning 26,088 Colton 99,247 Riverside 626,112 LADWP 960,038 Vernon 96,526 M-S-R 391,320 AEPCO-SWTC 26,088 Total ETC 2,303,683 TOTAL REVENUE CHANGE 42,549,842 The retail revenue forecast by month is set forth in Statements BG and BH. 1 1 Wholesale rates reflecting the wholesale TRBAA proposed in this filing will be set forth in SCE s 2015 formula rate update informational filing which will be made by December 1, 2014 in accordance with the protocols set forth in the TO Tariff.

5 Ms. Kimberly D. Bose, Secretary Federal Energy Regulatory Commission Page 4 October 31, 2014 Communications SCE requests that all correspondence, pleadings, and other communications concerning this filing be served upon: Julie Miller Senior Attorney Southern California Edison Company P.O. Box Walnut Grove Avenue Rosemead, California julie.miller@sce.com SCE also requests that an additional copy of any correspondence and orders be sent to the undersigned at James.Cuillier@sce.com. Other Filing Requirements No expenses or costs included in the rates tendered herein have been alleged or judged in any administrative or judicial proceeding to be illegal, duplicative or unnecessary costs that are demonstrably the product of discriminatory employment practices. SCE believes that the information contained in this filing provides a sufficient basis upon which to accept this filing; however, to the extent necessary, SCE further requests that the Commission waive its filing requirements contained in Part 35 of its regulations to the extent necessary in order to permit this filing to be made effective as requested.

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7 2015 TRBAA FILING MAILING LIST California Public Utilities Commission Harvey Y. Morris, General Counsel State of California State Building 505 Van Ness Avenue San Francisco, California California Independent System Operator Corp. Anthony Ivancovich Deputy General Counsel Regulatory 250 Outcropping Way Folsom, California California Independent System Operator Corp. Andrew Ulmer Senior Counsel 250 Outcropping Way Folsom, California City of Anaheim Director of Utilities Stephen Sciortino, Assistant General Manager 201 S. Anaheim Blvd. CHW 11th Floor Anaheim, California City of Riverside Public Utilities Department Stephen H. Badgett, Interim General Manager 3900 Main Street, 4th Floor Riverside, California Starwood IO, L.L.C. Ali Amirali, General Manager 591 West Putnam Avenue Greenwich, Connecticut Chief Operating Officer Trans Bay Cable LLC Gregory Heiden California Public Utilities Commission 505 Van Ness Ave. San Francisco, CA California Independent System Operator Corp. Anthony Aben Deputy General Counsel Regulatory 250 Outcropping Way Folsom, California Chief Operating Officer Citizens Energy Corporation Peter F. Smith 88 Black Falcon Ave. Suite 342 Boston, Massachusetts City of Pasadena Phyllis Currie, General Manager 150 S. Los Robles, Suite 200 Pasadena, California City of Vernon Carlos Fandino Director of Utilities 4305 Santa Fe Avenue Vernon, California Kevin Smith Braun Blaising McLaughlin & Smith, P.C 915 L Street, Suite 1270 Sacramento, CA smith@braunlegal.com Valley Electric Association, Inc. General Counsel

8 Sean O Reilly One Letterman Drive, Building C, 5 th Floor San Francisco, California sean.oreilly@transbaycable.com Western Area Power Administration Thomas R. Boyko, Regional Manager 114 Parkshore Drive Folsom, California boyko@wapa.gov Department of Water and Power of the City of Los Angeles Mukhlesur Bhuyian 111 N. Hope Street Los Angeles, California mukhlesur.bhuiyan@ladwp.com The Metropolitan Water District of Southern California Mark Parsons P.O. Box Los Angeles, California mparsons@mwdh2o.com Western Area Power Administration, James Keselburg, Regional Manager Sierra Nevada Region 114 Parkshore Drive Folsom, California keselbrg@wapa.gov RCS, Inc. James Ross 500 Chesterfield Center, Suite 320 Chesterfield, MO jimross@r-c-s-inc.com Manisha Lakhanpal California Public Utilities Commission 505 Van Ness Ave. San Francisco, CA Manisha.Lakhanpal@cpuc.ca.gov Curt R. Ledford, Esq. 800 E. Highway 372 P.O. Box 237 Pahrump, Nevada curtl@vea.coop Arizona Electric Power Cooperative Dwight Whitley, Esq. P.O. Box S. Highway 80 Benson, Arizona dwhitley@ssw.coop Golden State Water Company Nguyen Quan Manager, Regulatory Affairs 630 East Foothill Boulevard San Dimas, California nquan@gswater.com Electric Resources Planning and Development Manager Abraham Alemu City of Vernon 4305 Santa Fe Avenue Vernon, California aalemu@ci.vernon.ca.us Associate General Counsel Trans Bay Cable LLC Judith A. Hall c/o Babcock & Brown LP 2 Harrison Street, 6th Floor San Francisco, CA Judith.hall@babcockandbrown.com Atlantic Path 15, LLC Paul H. Rapisarda, Managing Director 200 Clarendon Street 25th Floor Boston, MA prapisarda@atlanticpowercorporation.com Christopher W. Zibart, Corporate Secretary DATC Path 15, LLC W234 N20000 Ridgeview Pkwy Ct. Waukesha, WI czibart@atcllc.com

9 Jamie Asbury Imperial Irrigation District 333 E. Barioni Blvd. P.O. Box 937 Imperial, CA Jonathan Gottlieb Shareholder Leonard Street and Deinard, PA 1350 I Street N.W. Suite 800 Washington, District of Columbia United States jwg@leonard.com Brenda S Robertson Paralegal Leonard Street and Deinard, PA Bohle Road P.O. Box 918 Mechanicsville, MD perfectsolutioninc@yahoo.com David Marcus dmarcus2@sbcglobal.net Mihai Cosman 505 Van Ness Ave Fl 4 San Francisco, CA mr2@cpuc.ca.gov Evelyn Kahl Partner 33 New Montgomery St. Ste 1850 San Francisco, CA ek@a-klaw.com Jeffrey K. Janicke Associate McCarter & English, LLP th Street, N.W., 12th Floor Washington, DISTRICT OF COLUMBIA jjanicke@mccarter.com Robert Rosenberg Slover & Loftus LLP th Street, N.W. Washington, District of Columbia United States rdr@sloverandloftus.com Robert C Fallon, ESQ Stinson Leonard Street LLP 1775 Pennsylvania Ave NW Suite 800 Washington, District of Columbia fallonr@stinsonleonard.com Deborah Barnes Deputy Attorney General California Office of Attorney General P.O. Box Sacramento, CA deborah.barnes@doj.ca.gov Gopal Swaminathan Trial Attorney Commission Staff Counsel 888 First st, N.E. 3A-05 (1100 1st St) Routing Code: AL-2.3 Washington, District of Columbia Gopal.Swaminathan@ferc.gov Donald Brookhyser Alcantar & Kahl LLP Suite SW 5th Ave. Portland, OR deb@a-klaw.com John Adragna Partner McCarter & English, LLP Twelfth Floor th Street, N.W. Washington, District of Columbia Jadragna@mccarter.com Andrew Art Attorney Van Ness Feldman, LLP 1050 Thomas Jefferson Street, NW Seventh Floor Washington, DISTRICT OF COLUMBIA aba@vnf.com

10 Syndi Driscoll Deputy City Attorney LADWP Los Angeles Department of Water & Power 111 North Hope St., Room 340 Los Angeles, CA Angela R Barrett Secretary Duncan, Weinberg, Genzer & Pembroke PC 1615 M Street, NW Suite 800 Washington, DISTRICT OF COLUMBIA arb@dwgp.com Roger VanHoy Asst. Gen Mgr, Elec Resources Modesto Irrigation District rogerv@mid.org Joy A. Warren, ESQ Regulatory Admin Modesto Irrigation District Lindaf@mid.org Lisa Gast Attorney Duncan, Weinberg, Genzer & Pembroke PC 1615 M Street Suite 800 Washington, DISTRICT OF COLUMBIA lsg@dwgp.com Gabriel Phillips President & CEO Duncan, Weinberg, Genzer & Pembroke PC 131 Varick Street Suite 1032 New York, NY gabe@gprenew.com Sean Neal Attorney Duncan, Weinberg, Genzer & Pembroke PC 915 L Street Suite 1410 Sacramento, CA smn@dwgp.com Derek Dyson Duncan, Weinberg, Genzer & Pembroke PC 1615 M. Street, NW Suite 800 Washington, DISTRICT OF COLUMBIA dad@dwgp.com Seth Lucia 2000 K Street, NW Suite 500 Washington, DISTRICT OF COLUMBIA seth.lucia@bgllp.com Peter Scanlon Duncan Weinberg, Genzer & Pembroke PC 1615 M Street Suite 800 Washington, DISTRICT OF COLUMBIA pjs@dwgp.com Joshua Adrian 1615 M. Street, NW Suite 800 Washington, DISTRICT OF COLUMBIA jea@dwgp.com Natalie M Karas nmk@dwgp.com

11 Lisa Dowden Spiegel & McDiarmid LLP 1875 Eye Street, NW Suite 700 Washington, DISTRICT OF COLUMBIA Service Spiegel & McDiarmid LLP 1875 Eye St, NW Suite 700 Washington, DISTRICT OF COLUMBIA Mark Patrizio Attorney Pacific Gas and Electric Company PO Box 7442 San Francisco,CA PG&E Law Dept FERC Cases 77 Beale Street San Francisco, CA Ed Lucero Mgr FERC Analysis San Diego Gas & Electric Company 8330 Century Park Ct CP12G San Diego, CA Bonnie Blair Attorney Thompson Coburn LLP 1909 K Street, N.W. Suite 600 Washington, DISTRICT OF COLUMBIA bblair@thompsoncoburn.com Rebecca Shelton 1909 K Street, N.W., Suite 600 Washington, DISTRICT OF COLUMBIA rshelton@thompsoncoburn.com Katharine M. Mapes Attorney Spiegel & McDiarmid LLP 1825 Eye Street N.W. 7th Floor Washington, DISTRICT OF COLUMBIA katharine.mapes@spiegelmcd.com James H. Pope General Manager Northern California Power Agency 651 Commerce Drive Roseville, CA jim.pope@ncpa.com Robert Doran Manager, PG&E Pacific Gas and Electric Company PO Box San Francisco,CA rjda@pge.com Georgetta Baker Attorney San Diego Gas & Electric Company 101 Ash Street HQ12 San Diego, CA GBaker@semprautilities.com Steve Williams San Diego Gas & Electric Company 8306 Century Park Ct San Diego, CA Swilliams@semprautilities.com Margaret Elizabeth McNaul Thompson Coburn LLP 1909 K Street, N.W. Suite 600 Washington, DISTRICT OF COLUMBIA mmcnaul@thompsoncoburn.com Carrie A Thompson Integrated Resources Manager City of Anaheim, California 201 S. Anaheim Blvd. Suite 802 Anaheim, CA cathompson@anaheim.net

12 David Kolk City of Colton, CA Fred Mason Electric Division City of Banning, California 176 East Lincoln Banning, CA Hsi Bang (Bob) Tang Power Contracts/Projects Manager City of Riverside, California th Street Riverside, CA Kerry C. Klein Attorney Pacific Gas and Electric Company Law Department PO Box 7442 San Francisco,CA Bhaveeta Mody Duncan, Weinberg, Genzer & Pembroke PC 1615 M Street, N.W. Suite 800 Washington, D.C., DISTRICT OF COLUMBIA bkm@dwgp.com Matthew Rudolphi Attorney Duncan, Weinberg, Genzer & Pembroke PC 1615 M Street, NW, Suite 800 Washington, DISTRICT OF COLUMBIA mrr@dwgp.com George F. Morrow Director of Utilities Azusa Light, Power & Water 729 N. Azusa Avenue Azusa, CA gmorrow@ci.azusa.ca.us Eric R Klinkner Assistant General Manager City of Pasadena Dept. of Water & Power 150 S. Los Robles Suite 200 Pasadena, CA eklinkner@cityofpasadena.net Robert C. Smith Principal GDS Associates, Inc Parkway Place Suite 800 Marietta, GA rob.smith@gdsassociates.com Michael Postar Attorney Duncan, Weinberg, Genzer & Pembroke PC 1615 M St., NW Suite 800 Washington, DISTRICT OF COLUMBIA mrp@dwgp.com Timothy Haines Senior Power Manager 1121 L Street Suite 1050 Sacramento, CA thaines@swc.org Lenneal Gardner Corporate Counsel Trans Bay Cable LLC One Letterman Drive Bldg C, 5th Flr. San Francisco, CA lenneal.gardner@transbaycable.com

13 Tyler Mansholt FERC CASE ADMINISTRATION Southern California Edison Company PO Box 800 Rosemead,CA Rebecca Furman Attorney Southern California Edison Company PO Box 800 Rosemead,CA Anna Valdberg Attorney Southern California Edison Company PO Box 800 Rosemead,CA Gary Chen Southern California Edison Company PO Box 800 Rosemead,CA

14 REVISED APPENDICES TO THE TRANSMISSION OWNER TARIFF (Clean Version)

15 Southern California Edison Company FERC Electric Tariff, Third Revised Volume No. 6 APPENDIX I Transmission Revenue Requirement 1. End-Use Customers: For purposes of the calculation of End-User Transmission Rates, the Transmission Revenue Requirement shall be equal to the retail Base Transmission Revenue Requirement determined pursuant to the formula rate in Appendix IX plus the retail TRBAA of ($9,680,424). 2. Wholesale Customers: For purposes of the calculation of Access Charges applicable to wholesale customers: a. The Transmission Revenue Requirement shall be equal to the sum of the Wholesale Base Transmission Revenue Requirement determined pursuant to the formula rate in Appendix IX and the wholesale TRBAA of ($9,660,398), less the Standby Transmission Revenues determined pursuant to the formula rate in Appendix IX. b. The High Voltage Transmission Revenue Requirement shall be equal to the sum of the High Voltage Wholesale Base Transmission Revenue Requirement determined pursuant to the formula rate in Appendix IX and the High Voltage wholesale TRBAA of ($9,556,992), less the High Voltage Standby Transmission Revenues determined pursuant to the formula rate in Appendix IX. c. The Low Voltage Transmission Revenue Requirement shall be equal to the sum of the Low Voltage Wholesale Base Transmission Revenue Requirement determined pursuant to the formula rate in Appendix IX and the Low Voltage wholesale TRBAA of ($103,406), less the Low Voltage Standby Transmission Revenues determined pursuant to the formula rate in Appendix IX. Tariff Record Proposed Effective Date: 01/01/2015 Version Number: Option Code: A

16 Southern California Edison Company FERC Electric Tariff, Third Revised Volume No. 6 d. Gross Load consistent with the High Voltage Transmission Revenue Requirement shall be as determined pursuant to the formula rate in Appendix IX. e. The sum of the twelve monthly retail system peak demands measured at the ISO Controlled Grid level shall be as determined pursuant to the formula rate in Appendix IX.

17 Southern California Edison Company FERC Electric Tariff, Third Revised Volume No. 6 APPENDIX III TRANSMISSION RATES FOR END-USE SERVICE Base transmission rates for service to End-Use Customers shall be determined pursuant to the formula rate in Appendix IX. SCE shall post the base transmission rates applicable to each End-User rate schedule on its website: In addition, the following transmission rates shall apply to service provided to End-Use Customers: A TRBAA Rate of ($ )/kWh shall apply to all End-User rate schedules A TACBAA Rate of $ /kWh shall apply to all End-User rate schedules Tariff Record Proposed Effective Date: 01/01/2015 Version Number: Option Code: A

18 REVISED APPENDICES TO THE TRANSMISSION OWNER TARIFF (Redline Version)

19 Southern California Edison Company FERC Electric Tariff, Third Revised Volume No. 6 APPENDIX I Transmission Revenue Requirement 1. End-Use Customers: For purposes of the calculation of End-User Transmission Rates, the Transmission Revenue Requirement shall be equal to the retail Base Transmission Revenue Requirement determined pursuant to the formula rate in Appendix IX plus the retail TRBAA of ($50,215,0109,680,424). 2. Wholesale Customers: For purposes of the calculation of Access Charges applicable to wholesale customers: a. The Transmission Revenue Requirement shall be equal to the sum of the Wholesale Base Transmission Revenue Requirement determined pursuant to the formula rate in Appendix IX and the wholesale TRBAA of ($50,111,1279,660,398), less the Standby Transmission Revenues determined pursuant to the formula rate in Appendix IX. b. The High Voltage Transmission Revenue Requirement shall be equal to the sum of the High Voltage Wholesale Base Transmission Revenue Requirement determined pursuant to the formula rate in Appendix IX and the High Voltage wholesale TRBAA of ($49,204,7269,556,992), less the High Voltage Standby Transmission Revenues determined pursuant to the formula rate in Appendix IX. c. The Low Voltage Transmission Revenue Requirement shall be equal to the sum of the Low Voltage Wholesale Base Transmission Revenue Requirement determined pursuant to the formula rate in Appendix IX and the Low Voltage wholesale TRBAA of ($103,406906,401), less the Low Voltage Standby Transmission Revenues determined pursuant to the formula rate in Appendix IX Tariff Record Proposed Effective Date: 01/01/2015 Version Number:

20 Southern California Edison Company FERC Electric Tariff, Third Revised Volume No. 6 Option Code: A d. Gross Load consistent with the High Voltage Transmission Revenue Requirement shall be as determined pursuant to the formula rate in Appendix IX. e. The sum of the twelve monthly retail system peak demands measured at the ISO Controlled Grid level shall be as determined pursuant to the formula rate in Appendix IX.

21 Southern California Edison Company FERC Electric Tariff, Third Revised Volume No. 6 APPENDIX III TRANSMISSION RATES FOR END-USE SERVICE Base transmission rates for service to End-Use Customers shall be determined pursuant to the formula rate in Appendix IX. SCE shall post the base transmission rates applicable to each End-User rate schedule on its website: In addition, the following transmission rates shall apply to service provided to End-Use Customers: A TRBAA Rate of ($ )/kWh shall apply to all End-User rate schedules A TACBAA Rate of $ /kWh shall apply to all End-User rate schedules Tariff Record Proposed Effective Date: 01/01/2015 Version Number:

22 Southern California Edison Company FERC Electric Tariff, Third Revised Volume No. 6 Option Code: A

23 UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Southern California Edison Company ) Docket No. ER PREPARED DIRECT TESTIMONY OF LYNN ELLEN MYERS ON BEHALF OF SOUTHERN CALIFORNIA EDISON COMPANY October 2014

24 Southern California Edison Company Docket No. ER Exhibit No. SCE-1 Page 1 UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION Southern California Edison Company ) Docket No. ER PREPARED DIRECT TESTIMONY OF LYNN ELLEN MYERS ON BEHALF OF SOUTHERN CALIFORNIA EDISON COMPANY QUALIFICATIONS Q. Please state your name and business address for the record. A. My name is Lynn Ellen Myers, and my business address is 2244 Walnut Grove Avenue, Rosemead, California Q. Briefly describe your present responsibilities at the Southern California Edison Company ( SCE or Company ). A. I am the Manager of the FERC Tariffs and Compliance section of the FERC Rates and Regulation Division of the Regulatory Operations Department. My responsibilities include developing and defending the terms and conditions of the Company s transmission and wholesale distribution tariffs and developing and submitting regulatory filings to the Federal Energy Regulatory Commission ( FERC or Commission ). 13

25 Southern California Edison Company Docket No. ER Exhibit No. SCE-1 Page Q. Briefly describe your educational and professional background. A. I received a Bachelor of Science Degree in Engineering in 1976 and a Masters of Business Administration in 1989, both from the University of Redlands. I was employed by SCE as an Applications Engineer in the Conservation and Community Services Department from 1976 to In 1978, I transferred to the Revenue Requirements Department, now named the Regulatory Operations, as a Rate Structure Engineer. From 1978 to 1983, my responsibilities included the analysis and development of rates for the Company s wholesale and retail fuel and other offset clauses. From 1983 to 1990, I was a supervisor primarily responsible for a variety of wholesale partial requirements rate issues. From 1990 to 1994, these responsibilities broadened to include the associated cost issues. I briefly held a position in the Regulatory Compliance Division from 1994 to 1995 where my responsibilities included ensuring the Company s compliance with the Commission s regulations. In 1995, I transferred to my present division, assuming supervisory/managerial responsibilities in Q. Have you testified before the Commission previously? A. Yes, I previously sponsored testimony in several of the Company s wholesale partial requirements rate filings in the late 1980s and in Docket Nos. ER , ER , ER , ER , ER , ER , ER , ER , ER

26 Southern California Edison Company Docket No. ER Exhibit No. SCE-1 Page , ER , ER , ER09-167, ER09-559, ER10-135, ER10-675, ER , ER , ER12-236, ER , ER13-227, ER , ER14-464, and ER (SCE s Transmission Revenue Balancing Account Adjustment ( TRBAA ) and Transmission Access Charge Balancing Account Adjustment ( TACBAA ) Update filings) and Docket No. ER I also testified before the California Public Utilities Commission in various offset clause proceedings. I am a registered Professional Engineer in the State of California. PURPOSE OF TESTIMONY Q. What is the purpose of your testimony in this proceeding? A. The purpose of my testimony is to present SCE s Transmission Revenue Balancing Account Adjustment ( TRBAA ) and associated TRBAA rate proposed to become effective January 1, Q. What is the TRBAA? A. The TRBAA mechanism has been a key component of the development and recovery of Transmission Revenue Requirements ( TRRs ) in California since initiation of the new market structure in The TRBAA is a ratemaking mechanism, set forth in Section 5.5 of SCE s Transmission Owner Tariff ( TO Tariff ), that flows-through to

27 Southern California Edison Company Docket No. ER Exhibit No. SCE-1 Page transmission customers all Transmission Revenue Credits ( TRCs ) received by SCE. Q. How does the TRBAA mechanism operate? A. Under the TO Tariff, the TRBAA and TRBAA rates are to be updated annually effective January 1. The updated TRBAA is to be based on the balance in the Transmission Revenue Balancing Account ( TRBA ) as of September 30 of the current year and the forecast of TRCs expected to be received in the following year. Q. How is the TRBAA assessed to transmission customers? A. As described in the TO Tariff, a separately stated per kwh rate is developed for assessing the TRBAA to retail transmission customers. This rate is based on the TRBAA divided by SCE s deliveries to End-Use Customers ( Gross Load ). In the case of wholesale transmission customers, there is no separate per kwh TRBAA rate. Rather, the TRBAA is added to the Base TRR and Standby revenue components to yield the wholesale TRR. Then, in accordance with the California Independent System Operator Corporation ( ISO ) Tariff, the wholesale TRR is split into High Voltage and Low Voltage components. Once developed, SCE provides the resulting High Voltage TRR to the ISO for its development of the High Voltage Access Charges and High Voltage Wheeling Access Charges to be effective on January 1. SCE calculates its Low Voltage Access Charge and

28 Southern California Edison Company Docket No. ER Exhibit No. SCE-1 Page the Low Voltage Wheeling Access Charge by dividing the Low Voltage TRR by Gross Load. SCE calculates its High Voltage Existing Contracts Access Charge and Low Voltage Existing Contracts Access Charge by dividing the High Voltage TRR by the sum of Edison s twelve monthly retail system peak demands measured at the ISO Controlled Grid level consistent with such revenue requirement in accordance with its TO Tariff. Q. What is the proposed TRBAA to be applicable to SCE s retail transmission customers on January 1, 2015? A. As shown in Statement BK and Appendix I of the revised TO Tariff, the TRBAA applicable to retail customers for service rendered beginning on January 1, 2015 is a negative $9.7 million, an increase of $40.5 million from the currently-effective level. This amount is equal to a forecast of the TRCs for 2015 and the balance in the TRBA as of September 30, 2014 as described below. Q. Please explain the forecast of TRCs. A. The forecast of TRCs for 2015 has two components Wheeling revenue and ETC Cost Differentials. Each component of the TRCs was forecast separately. Q. How was the forecast of Wheeling revenue developed? A. The forecast of Wheeling revenue is based on the actual Wheeling revenue SCE received from the ISO for Wheeling service reflected in the TRBAA

29 Southern California Edison Company Docket No. ER Exhibit No. SCE-1 Page during the 12-month period ending September 2014, adjusted to exclude any refunds paid to the ISO for Wheeling service rendered from January 1, 2012 thru September 30, These refunds primarily relate to the settlement of SCE s transmission revenue requirement formula rate filing in Docket No. ER and the associated rates for 2012 and SCE does not anticipate that similar refunds will occur in Q. How was the forecast of ETC Cost Differentials developed? A. The forecast of ETC Cost Differentials is based on the adjusted actual ETC Cost Differentials reflected in the TRBAA during the 12-month period ending September This forecast amount reflects the actual Scheduling Coordinator costs SCE was billed by the ISO for transmission service under the Exchange Agreement between the Los Angeles Department of Water and Power ( LADWP ) and SCE, Rate Schedule FERC No. 219 ( Exchange Agreement ), adjusted to exclude a one-time $3.3 million payment made to the CAISO in June 2014 associated with the must-offer obligation cost issues resolved in the CAISO s Amendment No. 60 case at FERC (Docket Nos. ER and EL04-103). SCE received this charge as the Scheduling Coordinator for the Exchange Agreement. The forecast ETC Cost Differentials amount also reflects the value of actual energy returned by LADWP to SCE in payment for transmission losses to reflect the settlement in Docket Nos. ER , ER07-955, and

30 Southern California Edison Company Docket No. ER Exhibit No. SCE-1 Page EL03-214, which became effective on January 14, 2008 ( Settlement ). The value of the energy returned is based on the ISO Integrated Forward Market ( IFM ) Hourly Locational Marginal Price at the Sylmar Pricing Node as posted on the ISO s website in accordance with the Explanatory Statement submitted with the Settlement. Q. Please describe the proposed TRBAA applicable to wholesale transmission customers. A. As shown in Statement BK and Appendix I of the revised TO Tariff, the TRBAA applicable to wholesale customers for service beginning on January 1, 2015 is a negative $9.7 million, an increase of $40.5 million from the currently-effective level of negative $50.1 million. The derivation of the forecast TRCs for 2015 for the wholesale TRBAA is the same as described above for the retail TRBAA. Next, the TRBAA applicable to wholesale transmission customers was separated into High Voltage and Low Voltage components. Q. How did you split the TRBAA revenue requirement into High Voltage and Low Voltage components in this filing? A. In developing this filing, SCE reflected the methodology set forth in Section 12.1(e) of Schedule 3 of Appendix F to the ISO Tariff. That methodology is as follows:

31 Southern California Edison Company Docket No. ER Exhibit No. SCE-1 Page Wheeling revenues associated with transactions exiting the ISO Grid at High Voltage Scheduling Points or Take-Out Points were reflected as High Voltage components; Wheeling revenues associated with transactions exiting the ISO Grid at Low Voltage Scheduling Points or Take-Out Points were attributed between High Voltage and Low Voltage components based on the High Voltage and Low Voltage Wheeling Access Charge rates assessed to such transactions by the ISO; Other Transmission Revenue Credits (ETC Cost Differentials) were allocated between High Voltage and Low Voltage components on a gross plant basis. The gross plant percentages used in this filing are the ones set forth in SCE s draft 2015 formula transmission rate update informational filing posted by SCE on its website ( 2015 Formula Rate Update ). In accordance with the formula rate protocols, SCE will file the 2015 Formula Rate Update by December 1, If the gross plant percentages in that filing differ from those used to set the wholesale TRBAA in this filing, this filing will be amended to reflect the updated figures. Q. Please discuss the derivation of SCE s proposed retail TRBAA rates. A. The TRBAA rate applicable to retail (End-Use) transmission customers beginning on January 1, 2015, as set forth in Statement BL and Appendix

32 Southern California Edison Company Docket No. ER Exhibit No. SCE-1 Page III of the revised TO Tariff, is a negative $ per kwh. As shown in Statement BL, this rate is equal to the TRBAA of negative $9.7 million divided by SCE s Gross Load at the meter for the twelve month period ended September 30, Q. Are you proposing revised wholesale rates in this filing? A. No. SCE will reflect the revised wholesale TRBAA proposed herein in its 2015 Formula Rate Update. The resulting wholesale rates will be set forth in that filing. Q. Have the revised TRBAA and the retail TRBAA rate been reflected in SCE s TO Tariff? A. Yes. The revised TRBAA and the retail TRBAA rate are reflected in the revised Appendices I and III to the TO Tariff included with this filing. Q. Does this conclude your testimony? A. Yes.

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34 ANNUAL UPDATE FILING Statements AH, AU, BD, BG, BH, BK, and BL

35 Statement AH Page 1 of 1 Southern California Edison Company Operation and Maintenance Expenses Period II 2015 Line No. ETC Cost Differentials Per Docket No. ER January ($300,000.00) 2 February ($300,000.00) 3 March ($300,000.00) 4 April ($300,000.00) 5 May ($300,000.00) 6 June ($300,000.00) 7 July ($300,000.00) 8 August ($300,000.00) 9 September ($300,000.00) 10 October ($300,000.00) 11 November ($300,000.00) 12 December ($300,000.00) Total ($3,600,000.00)

36 Statement AU Page 1 of 1 Southern California Edison Company Revenue Credits Period II 2015 Line No. Month Wheeling High Voltage Low Voltage 1 January ($2,325,000.00) ($2,308,492.50) ($16,507.50) 2 February ($2,325,000.00) ($2,308,492.50) ($16,507.50) 3 March ($2,325,000.00) ($2,308,492.50) ($16,507.50) 4 April ($2,325,000.00) ($2,308,492.50) ($16,507.50) 5 May ($2,325,000.00) ($2,308,492.50) ($16,507.50) 6 June ($2,325,000.00) ($2,308,492.50) ($16,507.50) 7 July ($2,325,000.00) ($2,308,492.50) ($16,507.50) 8 August ($2,325,000.00) ($2,308,492.50) ($16,507.50) 9 September ($2,325,000.00) ($2,308,492.50) ($16,507.50) 10 October ($2,325,000.00) ($2,308,492.50) ($16,507.50) 11 November ($2,325,000.00) ($2,308,492.50) ($16,507.50) 12 December ($2,325,000.00) ($2,308,492.50) ($16,507.50) Total ($27,900,000.00) ($27,701,910.00) ($198,090.00)

37 Statement BD Page 1 of 1 Southern California Edison Company Allocation Energy and Supporting Data Period II 2015 Monthly Energy Use by End-Use Customer Group (MWh) Lighting, Small Agricultural Street Line No. Month Domestic & Medium Power Large Power & Pumping Lighting Total 1 January 2,664,825 2,310,370 1,932, ,469 64,856 7,159,035 2 February 2,109,213 2,080,718 1,752, ,977 61,949 6,178,251 3 March 2,313,170 2,386,655 1,922, ,369 64,265 6,877,387 4 April 1,955,308 2,091,028 1,762, ,890 62,457 6,077,416 5 May 2,053,020 2,279,671 1,874, ,194 61,392 6,511,675 6 June 2,365,698 2,540,164 2,030, ,388 61,216 7,291,704 7 July 2,729,428 2,595,836 1,966, ,171 60,626 7,668,003 8 August 3,005,190 2,775,152 2,139, ,532 61,258 8,324,749 9 September 2,979,754 2,665,483 2,031, ,453 61,446 8,041, October 2,477,972 2,580,469 2,089, ,655 63,279 7,486, November 2,220,796 2,305,969 2,017, ,106 63,711 6,837, December 2,527,497 2,374,553 2,007, ,449 66,440 7,176, Total 29,401,871 28,986,068 23,526,639 2,962, ,896 85,630,128

38 Statement BG Page 1 of 1 Southern California Edison Company Statement of Proposed Revenues Period II 2015 Monthly TRBAA Revenue by End-Use Customer Group Lighting, Small Agricultural Street Total Line No. Month Domestic & Medium Power Large Power & Pumping Lighting TRBAA 1 January ($293,131) ($254,141) ($212,577) ($20,512) ($7,134) ($787,494) 2 February ($232,013) ($228,879) ($192,763) ($19,137) ($6,814) ($679,608) 3 March ($254,449) ($262,532) ($211,522) ($20,941) ($7,069) ($756,513) 4 April ($215,084) ($230,013) ($193,901) ($22,648) ($6,870) ($668,516) 5 May ($225,832) ($250,764) ($206,184) ($26,751) ($6,753) ($716,284) 6 June ($260,227) ($279,418) ($223,326) ($32,383) ($6,734) ($802,087) 7 July ($300,237) ($285,542) ($216,364) ($34,669) ($6,669) ($843,480) 8 August ($330,571) ($305,267) ($235,358) ($37,788) ($6,738) ($915,722) 9 September ($327,773) ($293,203) ($223,417) ($33,380) ($6,759) ($884,532) 10 October ($272,577) ($283,852) ($229,805) ($30,322) ($6,961) ($823,516) 11 November ($244,288) ($253,657) ($221,910) ($25,312) ($7,008) ($752,174) 12 December ($278,025) ($261,201) ($220,804) ($22,049) ($7,308) ($789,387) Total ($3,234,206) ($3,188,468) ($2,587,930) ($325,892) ($82,819) ($9,419,314)

39 Statement BH Page 1 of 1 Southern California Edison Company Statement of Present Revenues Period II 2015 Monthly TRBAA Revenue by End-Use Customer Group Lighting, Small Agricultural Street Total Line No. Month Domestic & Medium Power Large Power & Pumping Lighting TRBAA 1 January ($1,545,599) ($1,340,015) ($1,120,858) ($108,152) ($37,616) ($4,152,240) 2 February ($1,223,344) ($1,206,816) ($1,016,389) ($100,907) ($35,930) ($3,583,386) 3 March ($1,341,639) ($1,384,260) ($1,115,298) ($110,414) ($37,274) ($3,988,885) 4 April ($1,134,079) ($1,212,796) ($1,022,385) ($119,416) ($36,225) ($3,524,901) 5 May ($1,190,752) ($1,322,209) ($1,087,151) ($141,052) ($35,608) ($3,776,771) 6 June ($1,372,105) ($1,473,295) ($1,177,538) ($170,745) ($35,505) ($4,229,189) 7 July ($1,583,068) ($1,505,585) ($1,140,826) ($182,799) ($35,163) ($4,447,442) 8 August ($1,743,010) ($1,609,588) ($1,240,978) ($199,248) ($35,530) ($4,828,354) 9 September ($1,728,257) ($1,545,980) ($1,178,019) ($176,003) ($35,639) ($4,663,898) 10 October ($1,437,224) ($1,496,672) ($1,211,699) ($159,880) ($36,702) ($4,342,177) 11 November ($1,288,061) ($1,337,462) ($1,170,072) ($133,462) ($36,952) ($3,966,009) 12 December ($1,465,948) ($1,377,241) ($1,164,238) ($116,261) ($38,535) ($4,162,222) Total ($17,053,085) ($16,811,920) ($13,645,451) ($1,718,339) ($436,679) ($49,665,474)

40 Statement BK Page 1 of 2 Southern California Edison Company Electric Utility Cost of Service Calculation of Revised Transmission Revenue Balancing Account Adjustment For Wholesale Service Effective January 1, 2015 Period II 2015 Line No. Description Total High Voltage Low Voltage 1 Balance in TRBA on September 30, 2014 $21,927,146 $21,690,333 $236,813 2 Used for January 1, 2015 Rate 3 Including Interest 4 5 Forecast Wheeling Revenues ($27,900,000) ($27,701,910) ($198,090) 6 13 Forecast ETC Cost Differentials ($3,600,000) ($3,458,808) ($141,192) Revised Wholesale TRBAA Before Franchise Fees ($9,572,854) ($9,470,385) ($102,469) Adjustment for Franchise Fees at % ($87,544) ($86,607) ($937) Revised Wholesale TRBAA ($9,660,398) ($9,556,992) ($103,406)

41 Statement BK Page 2 of 2 Southern California Edison Company Electric Utility Cost of Service Calculation of Revised Transmission Revenue Balancing Account Adjustment For Retail Service Effective January 1, 2015 Period II 2015 Line No. Description Total 1 Balance in TRBA on September 30, 2014 $21,927,146 2 Used for January 1, 2015 Rate 3 Including Interest 4 5 Forecast Wheeling Revenues ($27,900,000) 6 13 Forecast ETC Cost Differentials ($3,600,000) Revised TRBAA Before Franchise Fees and ($9,572,854) 16 Uncollectable Accounts Adjustment for Franchise Fees and ($107,570) 19 Uncollectable Accounts at % Revised TRBAA For End-Use Customers ($9,680,424)

42 Statement BL Page 1 of 1 Southern California Edison Company Rate Design Information Transmission Revenue Balancing Account Adjustment Rate Period II 2015 Purpose: The purpose of the TRBAA Rate is to flow-through to End-Use Customers the Transmission Revenue Credits Line No. Description Total 1 Revised TRBAA For End-Use Customers ($9,680,424) 2 Effective January 1, Gross Load (kwh) 87,042,188,000 5 Twelve-months ended September 30, TRBAA Rate for End Use Customers ($/kwh) ($ ) 8 (Line 1/Line 4)

43 ANNUAL UPDATE FILING WORKPAPERS TABLE OF CONTENTS Statements Page Statement AH Statement AU Statement BK Statement BL Wholesale Revenue Change

44 1 Statement AH Page 1 of 1 Southern California Edison Company Operation and Maintenance Expenses Period II 2015 Line No. ETC Cost Differentials Per Docket No. ER January ($300,000.00) 2 February ($300,000.00) 3 March ($300,000.00) 4 April ($300,000.00) 5 May ($300,000.00) 6 June ($300,000.00) 7 July ($300,000.00) 8 August ($300,000.00) 9 September ($300,000.00) 10 October ($300,000.00) 11 November ($300,000.00) 12 December ($300,000.00) Total ($3,600,000.00)

45 2 ETC Cost Differentials Service Month 13-Oct 13-Nov 13-Dec 14-Jan 14-Feb 14-Mar 14-Apr 14-May 14-Jun 14-Jul 14-Aug 14-Sep Total CAISO Invoices Pre-2009 $3,267, Apr ($492.61) 9-May ($1,951.72) 9-Jun ($1,229.41) 9-Jul ($2,249.30) 9-Aug ($659.16) 9-Sep $ Oct ($863.84) 9-Nov ($889.45) 9-Dec ($102.19) 10-Jan ($1,018.37) 10-Feb $ Mar ($187.21) 10-Apr ($364.97) 10-May ($87.67) 10-Jun ($35.63) 10-Jul ($2,661.45) 10-Aug 10-Sep $ Oct $ Nov $0.01 $ Dec $45, $ Jan $ Feb $ Mar $ Apr $ May ($318.75) $ Jun ($36.54) 11-Jul 11-Aug $ Sep ($0.27) 11-Oct 11-Nov 11-Dec 12-Jan 12-Feb 12-Mar $ Apr ($0.01) 12-May $ Jun ($43.70) 12-Jul ($424.31) 12-Aug ($17.75) 12-Sep $ Oct $ Nov $ Dec ($435.26) ($1,384.90) 13-Jan ($7,128.48) ($1,265.52) 13-Feb ($37.67) $ Mar ($1,973.38) 13-Apr ($811.97) 13-May $1, Jun $10, Jul $35, ($2,192.26) 13-Aug $21, ($92.68) 13-Sep $152, $5, ($177.90) 13-Oct $127, $38, ($7,895.84) $ Nov ($173.80) $25, ($189.95) $ Dec $214, ($36,151.16) $8, Jan $131, ($1,024.82) $3, Feb $133, $139, ($611.02) 14-Mar $211, ($87,092.31) ($1,990.66) 14-Apr $10, ($581.24) $9, May $56, ($32,306.76) $15, Jun $54, $93, ($34,957.90) 14-Jul $50, $206, Aug $81, $45, Sep $334, Subtotal CAISO Invoices $315, $52, $292, $79, $133, $348, ($58,667.96) $54, $3,287, $152, $302, $344, $5,305, Amendment 60 Refund ($3,267,379.10) Value of Returned Losses ($585,978.87) ($3,617.86) ($162,185.46) ($611,787.48) ($541,997.23) ($578,284.91) ($529,543.20) ($103,644.13) ($469,038.61) ($852,866.29) ($674,047.63) ($521,607.22) ($5,634,598.89) Total Reflected in TRBAA ($270,120.18) $48, $130, ($532,092.42) ($408,016.56) ($229,837.01) ($588,211.16) ($49,578.85) ($448,864.87) ($700,289.52) ($371,324.50) ($176,673.81) ($3,596,449.79) Forecast ($3,600,000.00) Monthly Forecast ($300,000.00)

46 3 Statement AU Page 1 of 1 Southern California Edison Company Revenue Credits Period II 2015 Line No. Month Wheeling High Voltage Low Voltage 1 January ($2,325,000.00) ($2,308,492.50) ($16,507.50) 2 February ($2,325,000.00) ($2,308,492.50) ($16,507.50) 3 March ($2,325,000.00) ($2,308,492.50) ($16,507.50) 4 April ($2,325,000.00) ($2,308,492.50) ($16,507.50) 5 May ($2,325,000.00) ($2,308,492.50) ($16,507.50) 6 June ($2,325,000.00) ($2,308,492.50) ($16,507.50) 7 July ($2,325,000.00) ($2,308,492.50) ($16,507.50) 8 August ($2,325,000.00) ($2,308,492.50) ($16,507.50) 9 September ($2,325,000.00) ($2,308,492.50) ($16,507.50) 10 October ($2,325,000.00) ($2,308,492.50) ($16,507.50) 11 November ($2,325,000.00) ($2,308,492.50) ($16,507.50) 12 December ($2,325,000.00) ($2,308,492.50) ($16,507.50) Total ($27,900,000.00) ($27,701,910.00) ($198,090.00)

47 4 Wheeling Revenue Received and Forecast High Voltage Low Voltage Total Revenue Revenue Revenue 13-Oct ($3,903,646.76) ($28,993.84) ($3,932,640.60) 13-Nov ($3,390,563.76) ($20,662.49) ($3,411,226.25) 13-Dec ($3,820,131.56) ($14,115.77) ($3,834,247.33) 14-Jan ($2,768,123.14) ($16,967.48) ($2,785,090.62) 14-Feb ($1,776,112.88) ($8,994.52) ($1,785,107.40) 14-Mar ($1,208,337.80) ($9,423.12) ($1,217,760.92) 14-Apr ($1,319,614.78) ($12,161.20) ($1,331,775.98) 14-May ($1,394,856.38) ($6,808.83) ($1,401,665.21) 14-Jun ($732,541.45) ($3,291.05) ($735,832.50) 14-Jul ($516,844.47) ($4,919.29) ($521,763.76) 14-Aug ($1,951,338.91) ($15,449.28) ($1,966,788.19) 14-Sep ($1,365,498.11) ($11,380.41) ($1,376,878.52) Total ($24,147,610.00) ($153,167.28) ($24,300,777.28) Refunds Paid $3,552, $45, $3,597, Adjusted Total ($27,699,990.44) ($198,291.80) ($27,898,282.24) HV/LV % Split Forecast ($27,701,910.00) ($198,090.00) ($27,900,000.00) Monthly Forecast ($2,308,492.50) ($16,507.50) ($2,325,000.00)

48 5 Impacts of Settlement Refunds to Wheeling Revenue Service Rendered Month Charge Code Month Net Amount Reflected Net Amounts for Wheeling Revenue Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Total Impact of Settlement Amounts to Wheeling Revenue by Service Month Jun-12 CC384 $ 220, $ 220, $ 223, CC385 $ 2, $ 2, Jul-12 CC384 $ 184, $ 184, $ 187, CC385 $ 3, $ 3, Aug-12 CC384 $ 207, $ 207, $ 210, CC385 $ 3, $ 3, Sep-12 CC384 $ 146, $ 146, $ 149, CC385 $ 3, $ 3, Oct-12 CC384 $ 240, $ 240, $ 242, CC385 $ 2, $ 2, Nov-12 CC384 $ 219, $ 219, $ 222, CC385 $ 3, $ 3, Dec-12 CC384 $ 325, $ 325, $ 328, CC385 $ 3, $ 3, Jan-13 CC384 $ 169, $ 169, $ 172, CC385 $ 2, $ 2, Feb-13 CC384 $ 152, $ 152, $ 154, CC385 $ 2, $ 2, Mar-13 CC384 $ 142, $ 142, $ 145, CC385 $ 2, $ 2, Apr-13 CC384 $ 159, $ 159, $ 162, CC385 $ 3, $ 3, May-13 CC384 $ 202, $ 202, $ 204, CC385 $ 2, $ 2, Jun-13 CC384 $ 214, $ 214, $ 217, CC385 $ 2, $ 2, Jul-13 CC384 $ 348, $ 348, $ 351, CC385 $ 3, $ 3, Aug-13 CC384 $ 299, $ 299, $ 303, CC385 $ 3, $ 3, Sep-13 CC384 $ 319, $ 319, $ 321, CC385 $ 1, $ 1, Total Impact of Settlement Refunds to Wheeling Revenue $ - $ - $ - $ 368, $ 349, $ 415, $ 366, $ 594, $ 526, $ 649, $ 172, $ 154, $ 3,597, High Voltage (CC384) Portion $ - $ - $ - $ 363, $ 343, $ 409, $ 361, $ 588, $ 519, $ 645, $ 169, $ 152, $ 3,552, Low Voltage (CC385) Portion $ - $ - $ - $ 5, $ 6, $ 5, $ 5, $ 5, $ 6, $ 4, $ 2, $ 2, $ 45,124.52

49 6 Statement BK Page 1 of 2 Southern California Edison Company Electric Utility Cost of Service Calculation of Revised Transmission Revenue Balancing Account Adjustment For Wholesale Service Effective January 1, 2015 Period II 2015 Line No. Description Total High Voltage Low Voltage 1 Balance in TRBA on September 30, 2014 $21,927,146 $21,690,333 $236,813 2 Used for January 1, 2015 Rate 3 Including Interest 4 5 Forecast Wheeling Revenues ($27,900,000) ($27,701,910) ($198,090) 6 13 Forecast ETC Cost Differentials ($3,600,000) ($3,458,808) ($141,192) Revised Wholesale TRBAA Before Franchise Fees ($9,572,854) ($9,470,385) ($102,469) Adjustment for Franchise Fees at % ($87,544) ($86,607) ($937) Revised Wholesale TRBAA ($9,660,398) ($9,556,992) ($103,406)

50 7 Statement BK Page 2 of 2 Southern California Edison Company Electric Utility Cost of Service Calculation of Revised Transmission Revenue Balancing Account Adjustment For Retail Service Effective January 1, 2015 Period II 2015 Line No. Description Total 1 Balance in TRBA on September 30, 2014 $21,927,146 2 Used for January 1, 2015 Rate 3 Including Interest 4 5 Forecast Wheeling Revenues ($27,900,000) 6 13 Forecast ETC Cost Differentials ($3,600,000) Revised TRBAA Before Franchise Fees and ($9,572,854) 16 Uncollectable Accounts Adjustment for Franchise Fees and ($107,570) 19 Uncollectable Accounts at % Revised TRBAA For End-Use Customers ($9,680,424)

51 8 Transmission Revenue Balancing Adjustment October November December January February March April May June July August September BEGINNING BALANCE (2,077,013.87) (2,214,235.03) (2,317,312.05) (2,304,880.19) (1,717,915.41) (521,134.16) 1,568, ,495, ,928, ,298, ,926, ,346, AUTHORIZED REVENUES/ TRBAA Credits 4,111, ,296, ,776, ,948, ,427, ,583, ,890, ,928, ,290, ,903, ,812, ,051, Adjustment for FF&U 45, , , , , , , , , , , , Net TRBAA Credits 4,065, ,259, ,734, ,904, ,389, ,544, ,846, ,884, ,242, ,849, ,758, ,994, ISO Revenue - Wheeling (3,932,640.60) (3,411,226.25) (3,834,247.33) (2,785,090.62) (1,785,107.40) (1,217,760.92) (1,331,775.98) (1,401,665.21) (735,832.50) (521,763.76) (1,966,788.19) (1,376,878.52) LADWP ETC CAISO Billing 315, , , , , , (58,667.96) 54, ,287, , , , Value of LADWP Returned Losses (585,978.87) (3,617.86) (162,185.46) (611,787.48) (541,997.23) (578,284.91) (529,543.20) (103,644.13) (469,038.61) (852,866.29) (674,047.63) (521,607.22) Total Transmission Revenue Credits (4,202,760.78) (3,362,682.73) (3,704,231.76) (3,317,183.04) (2,193,123.96) (1,447,597.93) (1,919,987.14) (1,451,244.06) 2,082, (1,222,053.28) (2,338,112.69) (1,553,552.33) Under(Over) Collection (137,221.17) (103,077.02) 30, , ,196, ,096, ,926, ,433, ,325, ,627, ,420, ,441, ENDING BALANCE (2,214,235.03) (2,317,312.05) (2,286,698.05) (1,717,915.41) (521,134.16) 1,575, ,495, ,928, ,254, ,926, ,346, ,788, AVERAGE BEG/END BAL (2,145,624.45) (2,265,773.54) (2,302,005.05) (2,011,397.80) (1,119,524.79) 527, ,531, ,711, ,091, ,112, ,136, ,067, INTEREST RATE 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% 3.25% INTEREST (5,811.07) (6,136.47) (6,234.60) (5,447.54) (3,032.05) 1, , , , , , , ENDING BALANCE (2,220,046.10) (2,323,448.52) (2,292,932.65) (1,723,362.95) (524,166.20) 1,576, ,502, ,941, ,279, ,964, ,393, ,842, July Interest 38, August Interest 46, Ending Balance for Ratemaking 21,927,146.21