EXHIBIT 20.1

EDISON REACHES UNDERSTANDING WITH CPUC ADVOCACY
ARM ON 1995 GENERAL RATE CASE


September 6, 1994 -- Southern California Edison Company has signed a
memorandum of understanding with the California Public Utilities
Commission's Division of Ratepayer Advocates (DRA) that will form the
basis for a final settlement regarding the utility's 1995 General Rate
Case (GRC).  The memorandum of understanding contains these terms:

*     A $67 million revenue non-fuel revenue decrease in Edison's 1995
GRC;

*     Accelerated eight-year recovery of Edison's $2.7 billion remaining
investment in San Onofre Nuclear Generating Station Units 2 and 3 (SONGS
2 & 3) at a reduced rate of return; and

*     An incentive pricing plan for electricity produced by SONGS 2 & 3.

      "The concepts contained in the understanding serve the basic
interest of our customers and our shareholders," said John E. Bryson,
chairman and chief executive officer of Southern California Edison. For
customers, the understanding results in present-value savings and provides
certainty regarding future costs of operating SONGS 2 & 3.

      For SCEcorp's shareholders, the understanding calls for the
accelerated recovery of Edison's nuclear investment and clear incentives
for continued operation of SONGS.  "The understanding also is consistent
with the direction the CPUC is taking on regulation of the state's
electric utilities," Bryson said.

      Under the terms of the understanding, Edison's 1995 non-fuel
revenues would decrease by $67 million from the 1994 level.  In its
original GRC filing, Edison requested a revenue increase of $117 million.
Subsequently, Edison reduced its request to $70 million because of revised
cost estimates and sales and customer growth forecasts.  DRA had proposed
a $151 million reduction for 1995.

      "While the understanding will set revenues below our request, we
believe it provides sufficient funding for us to continue delivering high-
quality service to our customers and to earn our authorized return  -- but
only if we manage effectively," Bryson said.

      The understanding provides for spending reductions in research and
development and traditional demand side management (DSM) energy
conservation programs.

      However, the understanding does not alter Edison's commitment to
invest $75 million in shareholder funds in ENvestSCE, which provides
energy efficiency solutions for large customers.

      The memorandum of understanding includes the accelerated recovery of
Edison's $2.7 billion remaining investment in SONGS 2 & 3 over an eight-
year period beginning February 1, 1996.  During this period, Edison would
earn a return of 7.78 percent on its investment in SONGS 2 & 3.  Edison's
current authorized rate of return is 9.17 percent.

      While providing for Edison's recovery of its investment in SONGS 2
and 3, the memorandum also establishes an incentive pricing plan for
continued operation of SONGS 2 & 3.  Under the plan, Edison customers
would pay about four cents for every kilowatt-hour of electricity produced
by SONGS 2 & 3 during the eight-year period.  This pricing plan will
replace traditional ratemaking treatment for Edison's ongoing operating
and capital expenses for SONGS 2 & 3.  The incentive pricing plan does not
affect existing rate recovery for the decommissioning of SONGS 2 & 3 or
for Edison's investment in Palo Verde Nuclear Generating Station.


      Edison's board of directors has approved going forward with the 
proposed settlement based upon the terms of the memorandum of
understanding. Edison and the DRA are working to complete a definitive
settlement agreement, and they will hold a settlement conference in the
near future to explain the settlement terms.  Edison and the DRA will seek
Commission approval of the proposed settlement by the end of 1994. The
Commission can accept, modify, or reject Edison and DRA's proposal.