EXHIBIT 20.3
EDISON INTERNATIONAL
INVESTOR RELATIONS NEWS
December 4, 1996
ALJ Proposed Decision Adopts Palo Verde Settlement
The California Public Utilities Commission's (CPUC) Administrative
Law Judge (ALJ) assigned to the Palo Verde Nuclear Generating Station
(PVNGS) cost recovery proceeding issued a proposed decision on November
26. The proposed decision recommends that the CPUC adopt the Palo Verde
All-Party Settlement. (Details of the Settlement are outlined in EIX's
November 1 and 21 Investor Relations (I/R) Newsletters and the ALJ
proposed decision.) The proposed decision provides for the accelerated
recovery of SCE's remaining investment in Palo Verde and pass-through
balancing account treatment for its portion of incremental operating
costs over a five-year recovery period.
The ALJ has also proposed an abridged procedural schedule that
would permit the issuance of a final CPUC decision as early as December
20, 1996. Comments on the proposed decision are due December 9, with
reply comments due December 13. The ALJ proposed decision is eight
pages in length and is available upon request.
SCE Files Divestiture Application with CPUC
On November 27, Southern California Edison (SCE) filed an
application with the CPUC to voluntarily divest, by auction, 100% of its
gas and oil-fueled generation assets. (Details on the 12 plants to be
divested and SCE's plans for divestiture were published in EIX's
November 21 I/R Newsletter.) The application proposes that the plants
be sold in four bundles (or groupings), with no bidder, or consortium of
bidders, being allowed to purchase more than two of the four bundles.
SCE proposes that the first three bundles be auctioned simultaneously
during the summer of 1997.
The fourth bundle would contain those plants which must be run at
times for system reliability reasons (e.g. for voltage support). SCE
has concluded that after transmission upgrades costing approximately
$125 million, only two gas-fired stations would remain "must-run": the
Alamitos and Huntington Beach generating stations. (SCE has filed a
separate application with the CPUC regarding rate treatment of the
proposed transmission upgrades.) SCE proposes that the fourth bundle be
auctioned in the fall of 1997.
SCE envisions a three-stage divestiture process:
1) CPUC review and decision on SCE's 11/27/96 proposal, including
the auction protocols and procedures;
2) Auctions conducted and winning bidders selected in accordance
with approved procedures;
3) CPUC approval of the final sales.
- more -
PAGE
The following table shows the four bundles, and their respective
megawatts (MW), net book value, and original cost:
Station Net Book Value Original
Capacity MW (as of 12/31/95)(a) Cost
(Summer) (thousands $) (thousands $)
----------- ------------------- -------------
"Ventura Bundle"
ELLWOOD 48 2,128 7,843
MANDALAY 570 15,616 124,314
ORMOND BEACH 1500 164,180 306,537
---- ------- -------
Bundle Total 2118 181,924 438,694
"Eastern Bundle"
COOL WATER 628 94,919 224,612
ETIWANDA 1030 37,534 175,152
HIGHGROVE 154 (2,505) 25,815
SAN BERNARDINO 126 (1,771) 22,688
---- ------- -------
Bundle Total 1938 128,177 448,267
"South Bay Bundle"
REDONDO 1310 98,416 292,532
EL SEGUNDO 1020 74,514 187,499
LONG BEACH 530 94,886 180,607
---- ------- -------
Bundle Total 2860 267,816 660,638
"Local Reliability Bundle"
ALAMITOS 2083 153,112 379,613
HUNTINGTON BEACH 563 2,563 184,103
---- ------- -------
Bundle Total 2646 155,675 563,716
TOTAL 9562 733,592 2,111,315
==== ======= ========
(a) These figures represent SCE's best current estimate. Because the
property included in the sales may differ somewhat from what is assumed
here, the final figures included in SCE's Affidavit of Compliance may
not be identical.
Highlights of Divestiture Schedule Proposed by SCE in its 11/27
Application
Calif. Environmental Quality Assessment (CEQA) determination 01/23/97
Intervenor/Staff testimony 01/30/97
SCE rebuttal testimony 02/11/97
Hearings 02/18-28/97
ALJ proposed decision 04/28/97
CPUC approval of auction process 06/11/97
Initial bids due on Bundles 1 - 3 06/30/97
Final bids due on Bundles 1 - 3 08/14/97
Winner Selection and contract execution for Bundles 1 - 3 08/21/97
Compliance filing on Bundles 1 - 3 08/27/97
Initial bids due on Bundle 4 09/09/97
Final bids due on Bundle 4 10/13/97
Winner selection and contract execution on Bundle 4 10/17/97
Compliance filing on Bundle 4 10/21/97
Final CPUC decision on Bundles 1 - 3 10/22/97
Final CPUC decision on Bundle 4 12/16/97