Market Overview

Final San Onofre Nuclear Plant Settlement Clears Way for Customer Rate Cuts

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The settlement of issues and costs related to the closure of the San
Onofre nuclear plant was finalized today when parties notified the
California Public Utilities Commission that they accept the commission's
request that they remove a provision that would have funded
university-conducted greenhouse gas research.

The action concludes the commission's San Onofre proceeding and sets the
stage for Southern California Edison, majority owner of San Onofre, to
give customers rate reductions. The timing of the rate reductions
depends on the commission's review of SCE's upcoming filing regarding
the rate calculations.

"Today's decision means we can begin delivering the benefits to
customers that settling parties proposed seven months ago," said SCE
President Ron Nichols. "We're pleased to bring closure to this issue
following the diligent efforts over many months by the parties."

Nichols said there are two elements to the reduction in customer rates:
a one-time bill credit of about $11 per average residential customer;
and a 2 percent monthly average bill reduction, which equals about $2
per month for an average residential customer. The changes are expected
to be reflected in customer bills beginning in September.

The commission unanimously approved the settlement July 26, with the
condition that the settling parties accept the deletion of the
greenhouse gas provision. The settlement provides that customers of SCE
and San Diego Gas & Electric, a co-owner of San Onofre, will no longer
pay for the $775 million in San Onofre-related investments that had not
been recovered by the utilities.

The rate reductions under the settlement approved by the commission
today are in addition to the more than $2 billion in customer savings
under the prior settlement approved in 2014.

SCE retired San Onofre in June 2013 after a contractor provided faulty
steam generators. SCE is focused on safely decommissioning the nuclear
plant, guided by core principles of safety, stewardship and engagement.
SCE has established a Community Engagement Panel to support those
principles. For more information, visit songscommunity.com.

About Southern California Edison

An Edison International (NYSE:EIX) company, Southern California Edison
is one of the nation's largest electric utilities, serving a population
of approximately 15 million via 5 million customer accounts in a
50,000-square-mile service area within Central, Coastal and Southern
California.

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