July 13, 2005 ADVICE 1902-E (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION

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2 Director of Revenue and Tariffs July 13, 2005 (U 338-E) PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA ENERGY DIVISION SUBJECT: Request to Record in SCE s Bark Beetle CEMA Reimbursements to Property Owners for Their Removal of Trees That Could Have Impacted SCE s Electric Lines Starting March 12, 2002 Instead of April 3, 2003 In compliance with the California Public Utilities Commission (Commission) Decision (D.) , (SCE) hereby submits for filing the following request to revise its authorization to record in its bark beetle Catastrophic Event Memorandum Account (CEMA) reimbursements to property owners who: (1) removed trees in the affected counties 1 on or after March 12, 2002, and (2) meet SCE s criteria for reimbursement. PURPOSE In compliance with D , Ordering Paragraph No. 1, SCE supplements Advice 1730-E with this advice filing to request authorization to record in its bark beetle CEMA reimbursements paid by SCE to qualifying private and public property owners for their removal of trees that could have impacted SCE s electric lines and facilities on or after March 12, This request revises the previous authorized date of April 3, 2003 which was established with the Commission s approval of Advice 1730-E. BACKGROUND On May 27, 2004 a complaint was submitted by Mr. Schattinger of Lake Arrowhead requesting the Commission change the start date for tree removal reimbursement from April 3, 2003 to a date in the summer of 2002 to include those parties who removed 1 The potential fire hazard was considered unprecedented and on March 7, 2003, Governor Davis declared a State of Emergency for the impacted areas of Riverside, San Bernardino and San Diego counties. Subsequently, on January 6, 2005 Governor Schwarzenegger issued a Proclamation which extends the directions, orders, and authorities of the March 7, 2003 Emergency Proclamation to include affected areas of Los Angeles County. Accordingly, SCE activated a bark beetle CEMA sub-account for Los Angeles County and updated its guidelines for reimbursement to include Los Angeles County. P.O. Box Walnut Grove Ave. Rosemead, California (626) Fax (626)

3 (U 338-E) July 13, 2005 trees quickly because of the urgency of the situation. 2 Mr. Schattinger removed his trees on December 11, 2002 and filed a claim for reimbursement with SCE, but was denied. SCE denied his request because Resolution E-3824 and Advice 1730-E permit reimbursement only for the cost of trees removed on or after April 3, In D , the Administrative Law Judge determined that there was persuasive evidence that persons in Mr. Schattinger s position should receive reimbursement for trees removed in response to the emergency proclamations issued by the Boards of Supervisors of San Bernardino 3, Riverside, 4 and San Diego counties in 2002 and stated that,.persons who promptly responded to the Proclamations should not be barred from recovery because they were prompt, while persons who delayed their response until April 2003 are compensated. 5 The decision further concludes that, Property owners who removed trees in response to Emergency Proclamations issued by the Boards of Supervisors of San Bernardino, Riverside, and San Diego counties on or after March 12, 2002 and who meet SCE s standards for reimbursement, should be reimbursed for their reasonable costs of tree removal, 6 and that SCE should record such reimbursements in its CEMA for recovery. 7 Therefore, in accordance with D Ordering Paragraph No. 1, SCE supplements Advice 1730-E with this advice filing requesting authorization to record in its bark beetle CEMA reimbursements to property owners who removed trees on or after March 12, 2002 and meet SCE s criteria for reimbursement. No cost information is required for this advice filing. This advice filing will not increase any rate or charge, cause the withdrawal of service, or conflict with any other schedule or rule. SCE S REQUEST SCE requests that the Commission authorize SCE to record in its bark beetle CEMA the costs for reimbursements to qualifying public and private property owners for removal of trees, on or after March 12, 2002, that could have impacted SCE s electric lines. 2 Dick Schattinger, Complainant Vs., Defendant, Case No (Filed June 29, 2004). 3 Resolution Proclaiming Existence of a Local Sate of Emergency Relative to Bark Beetle Infestation; Related Funding Action, Board of Supervisors County of San Bernardino, Resolution No , April 23, Resolution Declaring the Existence of a Local Emergency, Board of Supervisors, County of Riverside, State of California, Resolution No , March 12, D , Finding of Fact No D , Conclusion of Law No D , Conclusion of Law No. 6.

4 (U 338-E) July 13, 2005 EFFECTIVE DATE Pursuant to D , Ordering Paragraph No. 1, this advice filing shall be effective upon approval of the Energy Division. While SCE does not request expedited processing of this request, SCE requests that this issue be resolved without undue delay because SCE will not reimburse any property owner who removed trees during the period commencing March 12, 2002 and ending April 3, 2003 until the Commission has approved this advice filing. NOTICE Anyone wishing to protest this advice filing may do so by letter via U.S. Mail, facsimile, or electronically, any of which must be received by the Energy Division and SCE no later than 20 days after the date of this advice filing. Protests should be mailed to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Avenue San Francisco, California jjr@cpuc.ca.gov and jnj@cpuc.ca.gov Copies should also be mailed to the attention of the Director, Energy Division, Room 4004 (same address above). In addition, protests and all other correspondence regarding this advice letter should also be sent by letter and transmitted via facsimile or electronically to the attention of: Director of Revenue and Tariffs 2244 Walnut Grove Avenue Rosemead, California Facsimile (626) AdviceTariffManager@sce.com Bruce Foster Vice President of Regulatory Operations c/o Karyn Gansecki 601 Van Ness Avenue, Suite 2040 San Francisco, California Facsimile: (415) Karyn.Gansecki@sce.com There are no restrictions on who may file a protest, but the protest shall set forth specifically the grounds upon which it is based and shall be submitted expeditiously.

5 (U 338-E) July 13, 2005 In accordance with Section III, Paragraph G, of General Order No. 96-A, SCE is mailing copies of this advice filing to the interested parties shown on the attached GO 96-A and C service lists. Address change requests to the attached GO 96-A service list should be directed to AdviceTariffManager@sce.com or (626) For changes to all other service lists, please contact the Commission s Process Office at (415) or by electronic mail at Process_Office@cpuc.ca.gov. Further, in accordance with Public Utilities Code Section 491, notice to the public is hereby given by filing and keeping the advice filing at SCE s corporate headquarters. To view other SCE advice letters filed with the Commission, log on to SCE s web site at For questions, please contact Mary Beth Quinlan at (626) or by electronic mail at Marybeth.Quinlan@sce.com. AJ:mbq:sq Enclosures

6 CALIFORNIA PUBLIC UTILITIES COMMISSION ADVICE LETTER FILING SUMMARY ENERGY UTILITY MUST BE COMPLETED BY UTILITY (Attach additional pages as needed) Company name/cpuc Utility No.: (U 338-E) Utility type: Contact Person: James Yee! ELC " GAS Phone #: (626) " PLC " HEAT " WATER EXPLANATION OF UTILITY TYPE ELC = Electric GAS = Gas PLC = Pipeline HEAT = Heat WATER = Water (Date Filed/ Received Stamp by CPUC) Advice Letter (AL) #: 1902-E Subject of AL: Request to Record in SCE s Bark Beetle CEMA Reimbursements to Property Owners for Their Removal of Trees That Could Have Impacted SCE s Electric Lines Starting March 12, 2002 Instead of April 3, 2003 Keywords (choose from CPUC listing): Compliance, Memorandum Account AL filing type: " Monthly " Quarterly " Annual! One-Time " Other If AL filed in compliance with a Commission order, indicate relevant Decision/Resolution #: D Does AL replace a withdrawn or rejected AL? If so, identify the prior AL: Summarize differences between the AL and the prior withdrawn or rejected AL 1 : Resolution Required? " Yes! No Requested effective date: No. of tariff sheets: -0- Estimated system annual revenue effect: (%): Estimated system average rate effect (%): When rates are affected by AL, include attachment in AL showing average rate effects on customer classes (residential, small commercial, large C/I, agricultural, lighting). Tariff schedules affected: None Service affected and changes proposed 1 : Pending advice letters that revise the same tariff sheets: 1 Discuss in AL if more space is needed.

7 Protests and all other correspondence regarding this AL are due no later than 20 days after the date of this filing, unless otherwise authorized by the Commission, and shall be sent to: CPUC, Energy Division Attention: Tariff Unit 505 Van Ness Ave., San Francisco, CA and Director of Revenue and Tariffs 2244 Walnut Grove Avenue Rosemead, California Facsimile: (626) Bruce Foster Vice President of Regulatory Operations c/o Karyn Gansecki 601 Van Ness Avenue, Suite 2040 San Francisco, California Facsimile: (415)