SCE and Governor Reach Agreement on Plan To Restore Utility To Financial 
Health


PR Newswire
04/09/01, 7:02p
(Copyright , 2001, PR Newswire)



ROSEMEAD, Calif., April 9 /PRNewswire/ -- At a joint press conference today 
with Governor Gray Davis, Edison International Chairman, President and CEO 
John E. Bryson announced agreement on a plan to restore Southern California 
Edison to financial health.

"This negotiated resolution with the Governor is far preferable for our 
company and our employees and for our customers than is going into 
bankruptcy," said Bryson.

"Through difficult negotiations over many weeks," Bryson noted, "we believe 
we have achieved a practical approach. Our customers and the state's economic 
vitality will benefit greatly from a financially healthy utility which can 
retain experienced and skilled employees and can invest the billions of 
dollars needed to maintain a sound electric infrastructure system.

"The blunt reality remains that we in California face a large challenge in 
restoring overall stability to the California electric system," Bryson said. 
"Our employees at Edison can make a large difference in helping to meet that 
challenge. Vital work remains to be done with the Governor, the Legislature, 
the California Public Utilities Commission, and other policymakers, but this 
agreement is a large first step toward restoring stability for much of 
Southern California."

Today's more detailed agreement follows the framework announced in a February 
23 preliminary agreement with the Governor. It was approved by the Edison 
International and SCE boards of directors this morning. Implementation will 
require further action by the California Legislature and the state Public 
Utilities Commission. Both Governor Davis and Bryson have urged swift action 
by both bodies. 

Major terms of the agreement include: 

 ???-- The state will receive a primary utility asset -- SCE's 12,000-mile
??????transmission system. ?SCE employees will operate and maintain the
??????system through a contractual arrangement with the state.

???-- Edison International and SCE commit to no less than $3 billion of
??????capital investment in utility infrastructure over the next five years.

???-- For the next 10 years, SCE will sell the output from its power plants
??????under cost-based, rather than market-based, pricing.

???-- For the next 10 years, Edison Mission Energy's unregulated Sunrise
??????power plant will sell its output exclusively to California under
??????cost-based pricing.

???-- SCE agrees to forego development of 20,000 acres of its Big Creek and
??????Eastern Sierra hydroelectric properties and grants conservation
??????easements in perpetuity to the state for land and habitat preservation
??????on these properties.

???-- SCE will gain a means of repaying the debt it incurred buying power for
??????its customers during the current rate freeze.

???-- Upon implementation of this agreement by the Legislature and CPUC, SCE
??????will drop its lawsuit against state regulators.


A copy of the Memorandum of Understanding will be available later today on 
Edison's investor Web site: www.edisoninvestor.com. 

Based in Rosemead, Calif., Edison International (NYSE: EIX) is the parent 
company of Southern California Edison, Edison Mission Energy, Edison Capital, 
Edison O&M Services, and Edison Enterprises. 

SOURCE Southern California Edison 

/CONTACT: Southern California Edison Corporate Communications, 626-302-2255/ 

/Web site: http://www.sce.com/ 

/Web site: http://www.edisoninvestor.com/ 

/Web site: http://www.edisonnews.com/ 

(EIX)