Edison filed A.00-05-027, its applications to divest its remaining SO2
credits, on May 15, 2000.  ORA protested on June 30, and Edison and ORA
worked out their differences and filed a joint recommendation on October 2.
According to the joint recommendation, which I will fax over to you,
Edison's original proposal was to auction off its SO2 credits.  The joint
recommendation accepts the auction approach, except that if no bids are
received for some credits, then those credits will be retained within the
regulated utility, and any future net proceeds will be credited to
ratepayers.  It appears that Edison's original proposal would have
transferred such no-bid credits to an unregulated affiliate at zero cost.
The joint recommendation also states that any no-bid credits retained by the
regulated utility will be deemed to have been market valued, and will have a
zero market value for purposes of determining transition costs.
No Commission decision has been issued on this matter.  No decision in this
matter appears on the Commission's agenda for March 15.  I can follow up on
the status and likely date of decision if you like.
Other than the joint recommendation I am about to fax to you, the only other
documents filed in this case were Edison's application and ORA's protest.
Please let me know if you would like a copy of either of them.
Brian