Attached you will find an outline of the Federal Court litigation filed by 
SCE against the CPUC.  SCE's request for a preliminary injunction is 
scheduled to be heard tomorrow, and a decision tomorrow is possible.  PG&E 
has filed a similar action, but its claims are not scheduled to be heard 
tomorrow.  

In summary:
The utilities are seeking an order permitting them to recover their past and 
future undercollections
They are not directly asking the court to determine that the rate freeze has 
ended
Potential outcome is that the court permits SCE (and, later, PG&E) to recover 
these undercollections and orders the CPUC to hold hearings on how to 
structure the recovery
Appeal by either side is likely

Please contact me if you have any questions.  MDS

---------------------- Forwarded by Mike D Smith/HOU/EES on 02/11/2001 11:58 
AM ---------------------------


 - sce-2.doc