8-KOther Events

EDISON INTERNATIONAL 8-K Report (Oct 23, 2003)

Filed October 23, 2003For Securities:EIX

Summary

Edison International (EIX) reported a significant development on October 23, 2003, concerning the California Public Utilities Commission (CPUC) litigation settlement. The California Supreme Court denied a petition for rehearing filed by The Utility Reform Network (TURN), upholding a previous decision that the settlement agreement between Southern California Edison Company (SCE) and the CPUC is lawful under California state law. This ruling effectively supports the $3.6 billion recovery of past procurement-related costs for SCE through the PROACT balancing account.

Key Highlights

  • 1California Supreme Court denied TURN's petition for rehearing regarding the SCE-CPUC settlement agreement.
  • 2The settlement allows SCE to recover $3.6 billion in past procurement-related costs.
  • 3Recovery of these costs through the PROACT balancing account was completed by July 31, 2003.
  • 4The CPUC's Energy Division has completed its final review of PROACT accounting, and the account was eliminated effective August 14, 2003.
  • 5The matter will now return to the U.S. Court of Appeals for the Ninth Circuit for final disposition.
  • 6This legal resolution is crucial for Edison International's financial stability and recovery of incurred costs.

Frequently Asked Questions

The denial means the California Supreme Court's August 21, 2003 decision, which found the settlement agreement between Southern California Edison (SCE) and the California Public Utilities Commission (CPUC) to be lawful under California state law, stands. This is a key victory for Edison International in validating the settlement.

The settlement agreement allows SCE to recover $3.6 billion of past procurement-related costs. This recovery was facilitated through a regulatory balancing account known as PROACT, and the process was completed by July 31, 2003.

The PROACT account, used for the recovery of past procurement costs, has been fully reviewed by the CPUC's Energy Division. The division notified SCE on October 14, 2003, that its final review was complete, and the account was formally eliminated effective August 14, 2003.

With the California Supreme Court's decision finalized and the rehearing petition denied, the case will now proceed back to the United States Court of Appeals for the Ninth Circuit for final resolution. TURN may still pursue further federal appeals.