SCE Reaches Agreement With QFs

SCE Reaches Agreement With Alternative Energy Generators

PR Newswire
06/19/01, 11:20p
(Copyright , 2001, PR Newswire)

ROSEMEAD, Calif., June 19 /PRNewswire/ -- Southern California Edison (SCE)
announced today that it has reached an agreement with most of its renewable
Qualifying Facilities (QF) power producers that addresses past payment issues
and future pricing considerations, and creates a mechanism for ending
numerous lawsuits.

"We believe this agreement will help bring stability to an important segment
of California's energy market," said SCE Chairman, President & CEO Stephen E.
Frank.

The plan was negotiated between the utility and key representatives of the QF
industry and facilitated by Governor Gray Davis' office. To date, SCE has
received signed agreements from QFs representing approximately 95% of its
renewable energy capacity and today executed those contracts. The company
hopes that the small number of remaining producers will also agree. Certain
elements of the agreements are subject to the approval of the California
Public Utilities Commission.

The plan calls for generators to provide power at a fixed price -- 5.37
cents/kWh -- over the next five years, eliminating some of the price
volatility that has plagued California's energy markets during the current
crisis. The plan stays all existing legal action, and assures that no new
legal action will be initiated unless the terms of the agreement are not met.

"The people of Edison are committed to pursuing the benefits of negotiated
practical solutions to California's energy crisis," said Frank. "The QF
agreement and the MOU, if approved, are critical steps toward resolving the
crisis. A bankruptcy, in contrast, would lead to years of delay and
uncertainty for our customers and raise serious questions about the business
climate in California."

An Edison International company, Southern California Edison is one of the
nation's largest electric utilities, serving a population of more than 11
million via 4.3 million customer accounts in a 50,000-square-mile service
area within central, coastal and Southern California.

SOURCE Southern California Edison

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