May 9, 2002 PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION

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2 Akbar Jazayeri Director of Revenue and Tariffs May 9, 2002 ADVICE 1620-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Implementation of the Phase 1 Decision in the Baseline OIR (R ) Southern California Edison Company (SCE) hereby transmits for filing changes to its tariff schedules in compliance with the California Public Utilities Commission s (Commission) Decision (Decision or D.) The revised tariff sheets are listed on Attachment A and attached hereto. In addition, this filing provides other information as ordered in the Decision. PURPOSE This advice filing revises SCE s Preliminary Statement, Part H, Baseline Service, and Schedules D, D-CARE, DM and DMS-3 in compliance with the Decision, which orders SCE to update its currently effective baseline allocations with more recent data and to set the baseline allocations at the highest percentage allowed by Section 739 of the Public Utilities (PU) Code. This advice filing also provides a description of the methodology SCE used to derive its updated baseline allocations and addresses non-tariffed changes to its Medical Baseline program as ordered by the Decision. In order to maintain revenue neutrality to SCE as a result of the changes ordered in the Decision, this filing establishes Preliminary Statement, Part I, Baseline Balancing Account (BBA) to SCE s tariffs and makes changes to Preliminary Statement, Part Z, Settlement Rates Balancing Account (SRBA). The distribution and generation rate components of Schedules D and D-CARE are modified to assure that revenue reductions resulting from increases in baseline allowances are reflected in generation revenues only. Finally, this filing proposes to record to BBA the administrative costs incurred as a result of changes to the Medical Baseline program ordered in the Decision. P.O. Box Walnut Grove Ave. Rosemead, California (626) Fax (626)

3 ADVICE 1620-E (U 338-E) May 9, 2002 INFORMATION Updated Baseline Allocations Pursuant to Ordering Paragraphs 3 and 9 of the Decision, SCE modifies Preliminary Statement, Part H, Baseline Service, and Schedules DM and DMS-3, to update its currently effective baseline allocations to reflect: (1) the most recent calendar year 2001 data; and (2) the baseline allocations for both basic and allelectric customers being set at the highest percentage allowed by PU Code Section 739. In accordance with Ordering Paragraph 10 of the Decision, only increases in baseline allocations are implemented in this advice filing. 1 Although the Decision, in Ordering Paragraph 8, sets a deadline of the summer cooling season of 2003 for the updating of electric baseline consumption data, SCE is updating its baseline consumption data in this advice filing since it is unlikely that a Commission decision would be issued in its 2003 GRC Phase II prior to the commencement of the 2003 summer season. It is in Phase II of SCE s GRC that baseline allocations are typically reviewed. In compliance with Ordering Paragraphs 4, 5, 6 and 7 of the Decision, SCE has updated its baseline allocations using the calculation methodology that was originally adopted by the Commission in SCE s 1985 GRC, when baseline was first implemented, and subsequently modified in April 1994 to account for seasonal residences pursuant to Resolution E This calculation methodology uses average aggregate consumption data developed based on bill frequency distributions from the most recent twelve-month period of recorded billing data (by baseline region, by season and customer type (basic or all-electric)). 2 Once the baseline allocations are developed from the bill frequency analysis, they are then normalized for three years of recorded historical average use (by baseline region, and season) to arrive at the final baseline allocations. 3 As noted above, if this process produces a decrease from the currently effective baseline allocation, a change in the baseline allocation is not made. 1 This up not down rule results in all of SCE s basic customers, and none of its all-electric customers, receiving increases in their baseline allocations. 2 Although in the past, SCE has utilized non-calendar year data as a means of capturing the most recent twelve-month period, in this update, SCE is using calendar year 2001 data, since the Decision, at page 7, expresses a preference for the most recent full calendar year s data. 3 In past GRCs, SCE typically normalized the bill frequency data based on four years of historical usage. However, as a result of recent SCE billing system changes, only three years of historical usage is available in the format needed (by baseline region, by season, by customer type).

4 ADVICE 1620-E (U 338-E) May 9, 2002 Modification of Distribution and Generation Rate Components As required under Baseline legislation, rates for baseline and non-baseline energy usage differ by a ratio of 1 to This rate differential is reflected in both the distribution and generation rate components of Domestic service schedules. In addition, SCE maintains an authorized seasonal variation in the distribution rate component in order to levelize annual system distribution revenues. This seasonal distribution rate differential is offset by an equal and opposite change in the seasonal generation rate components, such that total Domestic rates do not differ by season. Absent rate increases in the higher tier rates, changes in baseline allowances ordered in D have the effect of reducing total revenues recovered by SCE by an estimated $95 million annually. This results from a higher portion of total kwhs being billed at the lower baseline rate. Under current unbundled rates, as described above, this reduction is spread across both distribution and generation revenues. SCE proposes to modify its distribution rate components such that any revenue reduction resulting from the Decision is reflected in generation revenues only. In this way, only Surplus revenues, as defined in SCE s Settlement Agreement with the Commission, are impacted by changes in baseline allowances. These reductions in generation revenues are then tracked in the BBA (described below) for recovery in Phase II. Attachment B contains the workpapers in support of the development of the new baseline allocations and rate components as described above. In addition, as discussed on page 31 of the Decision, the workpapers also present and distinguish the disaggregated effects on new baseline allocations of updated consumption data and the use of the maximum allowable statutory percentages. Table 1 shows current and revised baseline allowances, by season, customer type and baseline zone. The revised allowances reflect an update to the recorded sales used in the analysis as required by the Decision, but do not include any changes to the currently effective aggregate percentage factors. Also, reductions in baseline allowances resulting from the update to usage data are shown as well as increases. In Table 2, the revised baseline allowances reflect both updated sales and the setting of the aggregate percentages at the maximum of the statutory range. Both increases and decreases in allowances are shown. Table 3 provides the revised baseline allowances as proposed by SCE in this advice filing, which are included in the revised tariff sheets in Attachment A. Consistent with the Decision, only increases to baseline allowances are permitted. Baseline allowances which would otherwise have been reduced as a result of updating usage data and percentage factors are maintained at existing levels.

5 ADVICE 1620-E (U 338-E) May 9, 2002 Baseline Balancing Account and Settlement Rates Balancing Account Pursuant to Ordering Paragraph 11 of the Decision, SCE establishes Preliminary Statement, Part I, BBA, and modifies Preliminary Statement, Part Z, SRBA. In order for SCE to maintain revenue neutrality while implementing changes to the baseline allocations with no corresponding change in rates, the Decision authorizes the establishment of the BBA. The BBA will track the undercollection in revenues (including associated interest calculated at the three-month commercial paper rate) resulting from the updated baseline allocations. However, under SCE s current Commission-approved ratemaking structure, 4 the undercollection in revenues will automatically be recorded in the SRBA which will result in a reduction in the amount of Surplus recorded to the PROACT. In order to ensure that the undercollection is appropriately recorded only in the BBA (and not SRBA), SCE will remove the baseline allocation-related undercollection from the SRBA. On a monthly basis, SCE will credit the SRBA by an amount equal to the debit recorded in the BBA. As indicated in the Decision, any costs recorded in the BBA are recoverable after the end of the rate freeze, consistent with the procedures adopted in D The disposition of the amounts recorded in the BBA is to be addressed in Phase 2 of this proceeding. The Decision orders several changes to the Medical Baseline program (as discussed in the following section) which will result in increased administrative costs incurred by SCE. Consistent with the language on page 35 of the Decision which states Finally, we affirm that utilities may receive reasonable cost recovery for the costs caused by the changes we order to the medical baseline program, SCE will record any incremental costs incurred from implementing the ordered changes to the medical baseline program in the BBA. Medical Baseline Changes Pursuant to Ordering Paragraph 22 of the Decision, SCE modifies Preliminary Statement, Part H, Baseline Service, to reflect the Decision s changes in the recertification criteria for the Medical Baseline program. Pursuant to the Decision, medical baseline customers with permanent disabilities are allowed to self-certify every two years, in lieu of obtaining a physician s signature or authorization. Medical baseline customers not having a permanent disability will be required to self-certify each year, and will need a doctor s certification every two years. SCE will inform its current medical baseline customers of these changes in the certification criteria by letter no later than June 2, 2002, the effective date of this advice filing. 4 In Resolution E-3765, the Commission approved the structure and operation of the Procurement Related Obligations Account (PROACT) and SRBA consistent with the October 2, 2001 Settlement Agreement between SCE and the Commission.

6 ADVICE 1620-E (U 338-E) May 9, 2002 The Decision also orders the utilities to make changes in their medical baseline programs that do not require tariff changes. SCE addresses each pertinent Ordering Paragraph (or part thereof) in the Decision as follows: Ordering Paragraph 13 states PG&E, SCE, SDG&E, and So Cal Gas shall, in addition to English, provide all medical baseline forms in Spanish and in the most prevalent Asian language in their respective service territories. We also encourage these four utilities to provide medical baseline forms in additional languages, particularly languages spoken by significant percentages of their customers. In the alternative, these utilities may work with community groups to provide information in additional languages on the medical baseline program. The Decision, at page 22, adopts Pacific Gas and Electric Company s (PG&E) recommendation that the utilities defer the translation, preparation and distribution of medical baseline forms in other languages until the forms are revised and simplified by the process described elsewhere in the Decision. Once the revision process is complete, SCE will offer its medical baseline forms in English, Spanish and in the most prevalent Asian language in SCE s service territory. In addition, customers can obtain assistance in filling out the application by contacting SCE s multilingual representatives. 5 Ordering Paragraph 15 states, All respondent gas and electric utilities shall have all medical baseline information and forms available in large print (at least 16- to 18-point type) and should be provided upon request. Large print versions shall be made available immediately, and need not await the revision of the forms. During this interim period, these large print materials need not match the format of the standard size material, and can be a simple enlargement of the existing materials. SCE s medical baseline information is now available in large print to anyone who requests it. Ordering Paragraph 16 states, We encourage all utilities to conduct outreach programs for the visually impaired through community organizations and state agencies that serve the blind and visually impaired. SCE will work with the Braille Institute, National Federation of the Blind, National Association for the Visually Handicapped, community organizations, the California Department of Education, and the California Department of Rehabilitation to create and distribute material for the blind and visually impaired. This will include information about SCE s programs and services and tips on lighting and safety in large font for the visually impaired. 5 SCE s toll-free 800 numbers are listed on all of our consumer program brochures, as well as the reverse side of each customer s electric statement.

7 ADVICE 1620-E (U 338-E) May 9, 2002 Ordering Paragraph 17 states, Utilities with California Alternate Rates for Energy (CARE) programs shall inform organizations involved in CARE outreach of the existence of the medical baseline program if they have not done so already, and let those organizations know of the availability of forms and information relating to medical baseline. SCE s CARE outreach through its Rapid Deployment program includes medical baseline. In addition, the community-based organizations funded through the Commission s Electric Education Trust, include medical baseline in their outreach, and community outreach by SCE volunteers also includes medical baseline information. Ordering Paragraph 18 states, The respondent gas and electric utilities shall perform reasonable outreach regarding the medical baseline program to Independent Living Centers and Senior Organizations in their service territories. They shall describe in detail how they are performing this outreach in the compliance advice letters we require in this decision. SCE has various outreach efforts to Independent Living Centers and Senior Organizations:! SCE is working with the Los Angeles Leadership Council of Aging Organizations (LCAO), a coalition of national nonprofit organizations concerned with the well-being of America s older population, to distribute information about SCE s programs and services, including Medical Baseline to agencies serving seniors living independently in their homes. Some of the members of LCAO include AARP, National Association of Area Agencies on Aging, and Meals on Wheels Association of America.! SCE works very closely with all senior communities such as Laguna Woods (formerly known as Leisure World) to provide information about the medical baseline program. Outreach efforts in this community have included appearing on their cable television with information about medical baseline and coordinating energy fairs where medical baseline brochures and applications were distributed. Medical baseline applications are also available at each of the six clubhouses.! SCE is also developing partnerships with local community senior centers and over the past year, has conducted over 250 presentations, providing information about SCE programs and services, including the medical baseline program.! SCE s Speaker s Bureau, Edison Expressions, conducts presentations at community and civic events. Within the first three months of 2002,

8 ADVICE 1620-E (U 338-E) May 9, 2002 presentations were made to 13 senior organizations and at 20 civic/community events where SCE programs and services, including medical baseline were presented.! SCE has established contacts within southland hospitals and medical facilities and is providing medical baseline program information and applications to the discharge units within these facilities. These facilities not only serve the senior population, but others who may qualify for the medical baseline program.! The training for over 120 agencies distributing SCE Energy Assistance Funds includes training on the CARE and medical baseline programs. Many of these agencies outreach to our senior population.! SCE participated in over 1500 community events in 2001 and continues to coordinate energy forums to outreach to our customers throughout Southern California, including our senior population. In addition, SCE has participated in town hall meetings for various legislators, presenting helpful information and providing material about SCE programs and services, including medical baseline.! Finally, a large number of seniors reside in mobilehome parks. SCE participates in the Annual Mobilehome Conference sponsored by Senator Joe Dunn. For the past two years, SCE has presented information about SCE programs and services. SCE has developed a brochure containing important information for residents and tenants of mobilehome parks that will be available for distribution this year. Medical baseline is one of the programs featured in this new brochure. Ordering Paragraph 20 states, The utilities shall make medical baseline forms available to anyone requesting such forms, whether or not that person is potentially qualified for medical baseline or is even a customer of the utility. The utilities shall confirm that their customer service personnel have easy access to the forms and readily provide the forms to anyone who asks for them. SCE already provides medical baseline forms to anyone requesting them; and in fact, is responsive to the third-party caregivers who may request information. SCE does not, however, discuss or disclose confidential customer information with third parties without the expressed approval of the customer of record. SCE s customer service personnel are fully trained and informed in this regard. Finally, Ordering Paragraph 21 states, Any utility that currently offers any of its customers forms online must add its current medical baseline form to its website within 20 days of the date of this order. All utilities shall have information about

9 ADVICE 1620-E (U 338-E) May 9, 2002 medical baseline on their websites, including a telephone number to call to request medical baseline forms, and a means to request medical baseline forms by , within 20 days of the date of this order. SCE provides its medical baseline form on its website, in addition to medical baseline information, a toll-free telephone number to request such information, and the ability to request medical baseline forms by . No cost information is required for this advice filing. This advice filing will not increase any rate or charge, cause the withdrawal of service, or conflict with any other schedule or rule. EFFECTIVE DATE In compliance with Ordering Paragraph 12 of the Decision, all changes made in this advice filing will become effective on June 2, 2002, which is the date SCE changes its baseline quantities for the 2002 summer season. 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: IMC Program Manager Energy Division California Public Utilities Commission 505 Van Ness Avenue, Room 4002 San Francisco, California Facsimile: (415) 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:

10 ADVICE 1620-E (U 338-E) May 9, 2002 Akbar Jazayeri Director of Revenue and Tariffs Southern California Edison Company 2244 Walnut Grove Avenue, Rm. 303 Rosemead, California Facsimile: (626) Bruce Foster Vice President of Regulatory Operations Southern California Edison Company 601 Van Ness Avenue, Suite 2040 San Francisco, California Facsimile: (415) There are no restrictions on who may file a protest, but the protest shall set forth specifically the grounds upon which it is based and shall be submitted expeditiously. In accordance with Section III, Paragraph G, of General Order No. 96-A, SCE is furnishing copies of this advice filing to the interested parties shown on the attached service list, and R Address change requests to the attached GO 96-A Service List should be directed to Emelyn Lawler at (626) or by electronic mail at For changes to all other service lists, please contact the Commission s Process Office at (415) or by electronic mail at 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 and choose Regulatory Info Center/Advice Letters. For questions, please contact Linda Letizia at (626) or by electronic mail at Southern California Edison Company AJ:LL Enclosures Akbar Jazayeri

11 Public Utilities Commission 1620-E Attachment A Cal. P.U.C. Sheet No. Title of Sheet Cancelling Cal. P.U.C. Sheet No. Revised E Preliminary Statement Part H Revised E Revised E Preliminary Statement Part H Revised E Original E Original E Preliminary Statement Part I Preliminary Statement Part I Revised E* Preliminary Statement Part Z Revised E Revised E Schedule D Revised E Revised E Schedule D-CARE Revised E Revised E Schedule DM Revised E Revised E Schedule DMS-3 Revised E Revised E Schedule DMS-3 Revised E Revised E Table of Contents Revised E Revised E Table of Contents Revised E Revised E Table of Contents Revised E 1

12 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 H. BASELINE SERVICE 3. Baseline Allocations. The applicable baseline quantity of electricity to be billed under rates designated as applicable to Baseline Service shall be the total of any Medical Baseline Allocation permitted under Paragraph 4 below, plus the applicable daily baseline quantities for the customer's Baseline Region (as described on the Baseline Region Maps and in the boundary descriptions which are in conjunction with such Baseline Region Maps) shown below except that daily baseline quantities for Schedule No. DM are shown thereon: Summer Season * kwh Per Day Baseline Basic All-Electric Region Allocation Allocation (C) (C) 16.9 Winter Season ** kwh Per Day Baseline Basic All-Electric Region Allocation Allocation (C) (C) 24.1 * The Summer Season shown above for the Baseline Regions shall commence at 12:00 a.m. on the first Sunday in June and continue until 12:00 a.m. of the first Sunday in October of each year. ** The Winter Season shown above for the Baseline Regions shall commence at 12:00 a.m on the first Sunday in October of each year and continue until 12:00 a.m. of the first Sunday in June of the following year. (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1620-E John R. Fielder Date Filed May 9, 2002 Decision Senior Vice President Effective Jun 2, H13 Resolution

13 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E PRELIMINARY STATEMENT Sheet 5 H. BASELINE SERVICE 4. Medical Baseline Allocation. e. Certification: Within 15 days after acceptance of the above certification, the Company will provide a Medical Baseline Allocation on the customer's account. The Company may require a new or renewed application and/or certification when needed, in the opinion of the Company. However, in accordance with Decision , upon completion of the review of Medical Baseline and finalization of needed tariff changes, the new or renewed certification process tariff language in the last sentence of the above paragraph will be replaced through the advice letter process of General Order 96-A by substantially the following: Customers certified as having a permanent disability, as designated in a physician s certification, will need to self re-certify their eligibility every two years, in lieu of obtaining a physician s signature or authorization. Those customers not having a permanent disability designation will need to self re-certify each year, and will need a doctor s certification every two years after the initial certification. (N) (N) 5. Verification. The number of single-family accommodations on the premises and the existence of the specified equipment or device required to obtain Baseline Allocations of electricity, pursuant to the Company's tariffs, are subject to verification by the Company. In the event the Company ascertains that the customer is not eligible for a Baseline Allocation, such customer may be rebilled accordingly. 6. Termination of Use. Customers shall notify the Company of termination of use of equipment or devices set forth above. 7. Billing. The Energy Charge shall be billed at the rates designated as applicable to Baseline Service up to the total of the applicable baseline quantities as determined in accordance with Part H, Paragraphs 2, 3, and 4 above. Usage in excess of the total applicable baseline quantities shall be billed at the rates designated as applicable to Nonbaseline Service. (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1620-E John R. Fielder Date Filed May 9, 2002 Decision Senior Vice President Effective Jun 2, H13 Resolution

14 Southern California Edison Original Cal. PUC Sheet No E Rosemead, California Cancelling Cal. PUC Sheet No. PRELIMINARY STATEMENT Sheet 1 I. BASELINE BALANCING ACCOUNT 1. Purpose The purpose of the Baseline Balancing Account (BBA) is to track, in separate subaccounts, (1) revenue shortfalls resulting from baseline allocation changes ordered in D in order to maintain revenue neutrality, and (2) administrative costs caused by the changes ordered to the medical baseline program in D Effective Date The effective date of the BBA is June 2, Definitions a. Interest Rate: The Interest Rate shall be 1/12 of the most recent month s 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 accrue at the rate of 1/12 of the most recent month s 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. b. Incremental Costs: Incremental Costs shall be the administrative costs incurred by SCE to implement the changes ordered to the medical baseline program in D , excluding all SCE labor costs. c. Franchise Fees and Uncollectible Accounts Expense: Franchise Fees and Uncollectible Accounts Expense (FF&U) shall be calculated using the factors most recently authorized by the CPUC. (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1620-E John R. Fielder Date Filed May 9, 2002 Decision Senior Vice President Effective Jun 2, H14 Resolution

15 Southern California Edison Original Cal. PUC Sheet No E Rosemead, California Cancelling Cal. PUC Sheet No. PRELIMINARY STATEMENT Sheet 2 I. BASELINE BALANCING ACCOUNT 4. Operation of the BBA Entries to the BBA shall be made on a monthly basis, and shall be calculated as follows: a. Baseline Revenue Shortfall Subaccount: 1. Recorded domestic rate service schedule revenues based on June 3, 2001 effective rate levels and June 2, 2002 effective baseline allocations; (Reduced by FF&U) 2. Less domestic rate service schedule revenues calculated based on June 3, 2001 effective rate levels and June 1, 1996 effective baseline allocations. (Reduced by FF&U) If the sum of the above calculation produces a positive amount (overcollection), such amount will be credited to the BBA. If the calculation produces a negative amount (undercollection), such amount will be debited to the BBA. b. Medical Baseline Program Cost Subaccount: Debit entry equal to the recorded incremental costs incurred from implementing changes to the medical baseline program as ordered in D Interest shall accrue to the BBA on a monthly basis by applying the Interest Rate to the average of the beginning and ending BBA balances. Disposition of amounts recorded in the BBA shall be determined in Phase 2 of the Baseline OIR Pursuant to D , any costs recorded in the BBA are recoverable after the end of the rate freeze. (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1620-E John R. Fielder Date Filed May 9, 2002 Decision Senior Vice President Effective Jun 2, H16 Resolution

16 Southern California Edison Revised Cal. PUC Sheet No E* Rosemead, California Cancelling Revised Cal. PUC Sheet No E* PRELIMINARY STATEMENT Sheet 4 Z. SETTLEMENT RATES BALANCING ACCOUNT 3. Definitions m. Total Retail Electric Revenues shall be equal to the sum of the following: 4. Operation of the SRBA (1) The total amount of revenues billed each month (including CPUC-authorized surcharges, and all CPUC-authorized discounts reflected on customers bills (e.g., the 10% rate reduction, and the 20/20 program) associated with the kwh provided by SCE and DWR; and (2) The change (plus or minus) in total Unbilled Revenues (i.e., the reversal of prior month s estimate, plus the current month s estimate). In order to determine amounts to be transferred to the PROACT, entries to the SRBA shall be made monthly based upon the following calculations: a. Credit entry equal to SCE Retail Electric Revenues determined as follows: (1) Credit entry equal to the Total Retail Electric Revenue; (2) A debit entry equal to the provision for Franchise Fee Requirements associated with item (1); (3) Sum of items (1) and (2) is equal to the total amount of retail revenue available to be allocated between SCE and DWR. (4) A debit entry equal to the DWR Power Sale Revenues; (5) A debit entry equal to the provision for Uncollectibles associated with Total Retail Electric Revenues reduced by the amount of DWR Power Sale Revenue (items (1) and (4) above; (6) A debit or credit entry to remove the baseline allocation-related over-or undercollection equal to the amount recorded in the Baseline Balancing Account (BBA) See Preliminary Statement, Part I; (N) (N) (7) The sum of items (3), (4), (5), and (6) is equal to SCE Retail Electric Revenues. (T) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1620-E John R. Fielder Date Filed May 9, 2002 Decision Senior Vice President Effective Jun 2, H12 Resolution

17 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E Schedule D Sheet 5 DOMESTIC SERVICE RATE COMPONENTS Rate Components Table Rate Schedule Summary Trans 1 Distrbtn 2 Gen 3,4 NDC 5 PPPC 6 TOTCA 7 PUCRF 8 FTAC 9 Total Energy Charge- $/kwh Baseline Summer (I) (R) ( ) Winter (I) (R) ( ) Nonbaseline 101% - 130% of Baseline - Summer (R) (I) ( ) Winter ( ) % - 200% of Baseline Summer ( ) Winter ( ) % - 300% of Baseline Summer ( ) Winter ( ) Over 300% of Baseline Summer ( ) Winter (R) (I) ( ) Basic Charge - $/day Single-Family Residence Multi-Family Residence Minimum Charge - $/day Single-Family Residence Multi-Family Residence Minimum Energy Charge $/kwh ( ) Bill Limiter - % * 10% Rate Reduction * Dept. of Water Resources (DWR) Procurement Charge-$/kWh *The "total" shown above represents 100% of the discount percentage as set forth in the specific rate schedule. 1 Trans = Transmission 2 Distrbtn = Distribution 3 Gen = Generation 4 Competition Transition Charge (CTC) = Total Generation charge minus Averaged Procured Energy (PE) Charge as set forth in Schedule PE. 5 NDC = Nuclear Decommissioning Charge 6 PPPC = Public Purpose Programs Charge (includes California Alternate Rates for Energy Surcharge where applicable.) 7 TOTCA = Transmission Owners Tariff Charge Adjustments [FERC approved represents Transmission Revenue Balancing Account Adjustment (TRBAA) of negative $ per kwh, Reliability Services Balancing Account Adjustment (RSBAA) of $ per kwh, and Transmission Access Charge Balancing Account Adjustment (TACBAA) of $ per kwh]. 8 PUCRF = The PUC Reimbursement Fee is described in Schedule RF-E. 9 FTAC = The Fixed Transition Amount Charge is described in Schedule RRB. (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1620-E John R. Fielder Date Filed May 9, 2002 Decision Senior Vice President Effective Jun 2, S9 Resolution

18 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E RATE COMPONENTS Schedule D-CARE Sheet 5 CALIFORNIA ALTERNATE RATES FOR ENERGY DOMESTIC SERVICE Rate Components Table Rate Schedule Summary Trans 1 Distrbtn 2 Gen 3,4 NDC 5 PPPC 6 TOTCA 7 PUCRF 8 FTAC 9 Total Energy Charge- $/kwh Baseline Summer ( )** (I) (R) ( ) Winter ** (I) (R) ( ) Nonbaseline 101% - 130% of Baseline-Summer ( )** (R) (I) ( ) Winter ** ( ) % - 200% of Baseline-Summer ( )** ( ) Winter ** ( ) % - 300% of Baseline-Summer ( )** ( ) Winter ** ( ) Over 300% of Baseline-Summer ( )** ( ) Winter ** (R) (I) ( ) Basic Charge - $/day Single-Family Residence Multi-Family Residence Minimum Charge - $/day Single-Family Residence Multi-Family Residence Minimum Energy Charge $/kwh ( ) % Rate Reduction * Dept. of Water Resources (DWR) Procurement Charge-$/kWh *The "total" shown above represents 100% of the discount percentage as set forth in the specific rate schedule. **The California Alternate Rates for Energy discount is ($ ) for Baseline and ($ ) for Nonbaseline. 1 Trans = Transmission 2 Distrbtn = Distribution 3 Gen = Generation 4 Competition Transition Charge (CTC) = Total Generation charge minus Averaged Procured Energy (PE) Charge as set forth in Schedule PE. 5 NDC = Nuclear Decommissioning Charge 6 PPPC = Public Purpose Programs Charge (includes California Alternate Rates for Energy Surcharge where applicable.) 7 TOTCA = Transmission Owners Tariff Charge Adjustments[FERC approved represents Transmission Revenue Balancing Account Adjustment (TRBAA) of negative $ per kwh, Reliability Services Balancing Account Adjustment (RSBAA) of $ per kwh, and Transmission Access Charge Balancing Account Adjustment (TACBAA) of $ per kwh]. 8 PUCRF = The PUC Reimbursement Fee is described in Schedule RF-E. 9 FTAC = The Fixed Transition Amount Charge is described in Schedule RRB. (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1620-E John R. Fielder Date Filed May 9, 2002 Decision Senior Vice President Effective Jun 2, S9 Resolution

19 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E Schedule DM Sheet 3 MULTIFAMILY ACCOMMODATION - RESIDENTIAL HOTEL - QUALIFYING RV PARK SPECIAL CONDITIONS 8. Baseline Allocations: Summer Season * kwh Per Day Baseline Basic All-Electric Region Allocation Allocation (C) (C) 21.0 (C) (C) 9.3 Winter Season ** kwh Per Day Baseline Basic All-Electric Region Allocation Allocation (C) (C) (C) 14.1 * The Summer Season shown above for the Baseline Regions shall commence at 12:00 a.m. on the first Sunday in June and continue until 12:00 a.m. of the first Sunday in October of each year. ** The Winter Season shown above for the Baseline Regions shall commence at 12:00 a.m. on the first Sunday in October of each year and continue until 12:00 a.m. of the first Sunday in June of the following year. 9. An Eligibility Declaration may be required for service under this rate schedule. 10. Resale and Submetering. Submetering for the purpose of resale of electricity is not allowed under this rate schedule. Electricity received from the Company may be provided to tenants as part of the rental charge, but may not be itemized separately, and rents shall not vary based on electrical consumption. 11. Agricultural Employee Housing: A customer taking service under this rate schedule who resides in housing as defined in Preliminary Statement Section 0.3.i., may qualify for a 15% discount on the bill if all eligibility criteria, specified in Form , is met. (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1620-E John R. Fielder Date Filed May 9, 2002 Decision Senior Vice President Effective Jun 2, H13 Resolution

20 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E Schedule DMS-3 Sheet 3 DOMESTIC SERVICE QUALIFYING RV PARK ACCOMMODATION - SUBMETERED SPECIAL CONDITIONS 6. CARE Rate Assistance: c. When the Company receives an application from a qualifying CARE submetered tenant, the information will be forwarded to the Company's customer receiving service under this schedule. d. The proration of the DMS-3 customer's bill by the Company under the provisions of the Energy Charge shall commence no later than one billing period after receipt and approval by the Company of a qualifying tenant's application. e. It is the responsibility of the DMS-3 customer to notify the Company immediately of the date each CARE tenant is no longer receiving service from the DMS-3 customer. In addition, if the DMS-3 customer has good reason to suspect that a tenant is not eligible, the DMS-3 customer should notify the Company. 7. Failure of a DMS-3 customer to abide by the Company's tariffs may result in a change of rate, rebilling and/or discontinuance of service in accordance with the Company's tariffs. The DMS-3 customer's account may also be rebilled consistent with Rule Baseline Allocations: The applicable baseline quantity of electricity to be billed under rates designated as applicable to Baseline Service shall be the total of any Medical Baseline Allocation permitted under Preliminary Statement, Part H, Paragraph 4, plus the applicable daily baseline quantities for the customer's Baseline Region (as described on the Baseline Region Maps and in the boundary descriptions which are in conjunction with such Baseline Region Maps) shown below: Summer Season* kwh Per Day Baseline Basic All-Electric Region Allocation Allocation (C) (C) (C) 9.3 (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1620-E John R. Fielder Date Filed May 9, 2002 Decision Senior Vice President Effective Jun 2, H11 Resolution

21 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E Schedule DMS-3 Sheet 4 DOMESTIC SERVICE QUALIFYING RV PARK ACCOMMODATION - SUBMETERED 8. Baseline Allocations: Winter Season** kwh Per Day Baseline Basic All-Electric Region Allocation Allocation (C) (C) (C) (C) 14.1 * The Summer Season shown above for the Baseline Regions shall commence at 12:00 a.m. on the first Sunday in June and continue until 12:00 a.m. of the first Sunday in October of each year. ** The Winter Season shown above for the Baseline Regions shall commence at 12:00 a.m. on the first Sunday in October of each year and continue until 12:00 a.m. of the first Sunday in June of the following year. (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1620-E John R. Fielder Date Filed May 9, 2002 Decision Senior Vice President Effective Jun 2, H11 Resolution

22 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. Baseline Balancing Account 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 (T) (T) (T) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1620-E John R. Fielder Date Filed May 9, 2002 Decision Senior Vice President Effective Jun 2, H10 Resolution

23 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. PENDING... S. Envest SCE Pilot Program Adjustment Mechanism (EPPAM) E E T. Electric and Magnetic Fields Measurement Program E U. Electric Vehicle Adjustment Clause (EVAC) E V. Hazardous Substance Cleanup Cost Recovery Mechanism E E W. Competition Transition Charge Responsibility (CTC) E E X. Research, Development and Demonstration Adjustment Clause (RDDAC) E Y. Economic Development Adjustment Clause (EDAC) E Z. Settlement Rates Balancing Account E AA. Demand Reduction and Self-Generation Program Incremental Cost (DRSGPIC) E BB. PBR Distribution Revenue Requirement Adjustment Factor (PDRRAF) E E E CC. PBR Distribution Performance Mechanism (PDPM) E E DD. Cost Of Capital Trigger Mechanism E EE. Electric Deferred Refund Account (EDRA) E FF. Public Purpose Programs Adjustment Mechanism E GG Energy Efficiency Program Adjustment Mechanism (EEPAM E HH. Low Income Energy Efficiency Program Adjustment Mechanism (LIEEPAM) E II. PENDING... JJ. PENDING... KK. Emergency Procurement Surcharge Balancing Account (EPSBA) E LL. PENDING... MM. Procurement Related Obligations Account (PROACT) E NN. PENDING...-E OO. PENDING...-E PP. PENDING...-E QQ. PENDING...-E RR. PENDING...-E SS. PENDING...-E TT. PENDING...-E UU. PENDING...-E VV. PENDING...-E WW.PENDING...-E XX. Electric distribution Revenue Adjustment Balancing Account (EDRABA) E E (T) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1620-E John R. Fielder Date Filed May 9, 2002 Decision Senior Vice President Effective Jun 2, H12 Resolution

24 Southern California Edison Revised Cal. PUC Sheet No E Rosemead, California Cancelling Revised Cal. PUC Sheet No E TABLE OF CONTENTS Sheet 3 RATE SCHEDULES Schedule Cal. P.U.C. No. Title of Sheet No. SERVICE AREA MAPS: Index to Maps of Service Area E Map A - Service Area E Map B - Service Area E Map C - Service Area E Map D - Service Area E RESIDENTIAL D Domestic Service E D-APS Domestic Automatic Powershift E D-APS-E Domestic Automatic Powershift Enchanced E D-CARE Domestic Service, CARE E DE Domestic Service to Utility Employees E DM Domestic Service Multifamily Accommodation E E DMS-1 Domestic Service Multifamily Accommodation Submetered E E DMS-2 Domestic Service Mobilehome Park Multifamily E Accommodation Submetered E DMS-3 Domestic Service Qualifying RV Park Accommodation Submetered E E DS Domestic - Seasonal E MB-E Medical Baseline Exemption E TOU-D-1 Time-of-Use Domestic E TOU-D-2 Time-of-Use Domestic E TOU-EV-1 Domestic Time-Of-Use Electric Vehicle Charging E TOU-EV-2 Domestic Time-Of-Use Electric Vehicle Charging E (T) (T) (T) (T) (To be inserted by utility) Issued by (To be inserted by Cal. PUC) Advice 1620-E John R. Fielder Date Filed May 9, 2002 Decision Senior Vice President Effective Jun 2, H8 Resolution

25 Attachment B - Workpapers Domestic Baseline Allowances Table 1 Current Revised Summer kwh Per Day Winter kwh Per Day Summer kwh Per Day Winter kwh Per Day Zone Basic All Electric Zone Basic All Electric Zone Basic All Electric Zone Basic All Electric Summer kwh Per Month Winter kwh Per Month Summer kwh Per Month Winter kwh Per Month Zone Basic All Electric Zone Basic All Electric Zone Basic All Electric Zone Basic All Electric % Change % Change Summer kwh Per Day Winter kwh Per Day Zone Basic All Electric Zone Basic All Electric % -6.1% % -4.8% % -9.4% % -10.0% % -13.0% % -20.3% % 0.0% % -48.5% % -12.7% % -10.9% % -14.5% % -20.5% Southern California Edison - R

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