 $1.5 billion, then SCE will also sell the state after December 
31, 2010 enough below-market-price-power to make up the shortfall.
? Conservation Property ) SCE shall grant perpetual conservation easements to 
the State covering approximately 260,000 acres of its Big Creek hydroelectric 
related lands and 825 acres of its Eastern Sierra hydroelectric related 
lands.  Some of the land may be deeded in fee.
? Contribution by Edison International ) Edison International will refund to 
SCE not less than $400 million.  This money will consist of a refund of 
approximately $293 million in estimated 2000 quarterly tax payments plus 
approximately $197 million in federal loss carryback tax savings.
? Investment ) Edison International and SCE will invest not less than $3 
billion over the next 5 years in capital improvements for SCE.
? Litigation ) SCE shall dismiss certain claims, including its takings and 
filed rate doctrine cases.
? CPUC Regulation ) CPUC shall continue to regulate SCE using historical 
principles of ratemaking.
? Payment for Portion of QF Drop-off ) SCE shall pay an amount that 
represents that portion of the net short from January 18, 2001 to April 1, 
2001 that is attributable to QF,s not selling to SCE (due to SCE,s failure to 
pay the QF,s).  SCE will securitize this amount.
? Securitization ) SCE shall securitize its full net undercollected amount 
(approx. $3.5 billion).  The securitization shall occur in two tranches (i.e. 
two different nonbypassable dedicated rate components).

? The first tranche will occur after the passage of legislation and the 
signing of the definitive agreements and will cover the net undercollected 
amount, less the gain on sale, plus interest on certain obligations in the 
net undercollected amount.
? The second tranche would be triggered if the transmission sale does not 
occur within two years.  Accordingly, the second tranche would not show up in 
rates for two years, if at all.

? Buying the Net Short ) The State will
$ 1.5 billion, then SCE will also sell the state after December 
 31, 2010 enough below - grocery store - monetary value - power to make up the deficit. 
? Conservation Property ) SCE shall grant ceaseless conservation easements to 
 the State covering approximately 260,000 estate of its Big Creek hydroelectric 
 related lands and 825 estate of its Eastern Sierra hydroelectric related 
 lands.   Some of the estate may be deeded in fee. 
? Contribution by Edison International ) Edison International will refund to 
 SCE not less than $ 400 million.   This money will consist of a refund of 
 approximately $ 293 million in estimated 2000 quarterly tax payment plus 
 approximately $ 197 million in union loss carryback tax savings. 
? Investment ) Edison International and SCE will endow not less than $ 3 
 billion over the next 5 years in das kapital improvements for SCE. 
? Litigation ) SCE shall dismiss certain claim, including its takings and 
 file rate doctrine casing. 
? CPUC Regulation ) CPUC shall continue to regulate SCE using historical 
 principles of ratemaking. 
? requital for Portion of QF Drop - off ) SCE shall pay an amount that 
 represents that portion of the net short from January 18, 2001 to April 1, 
 2001 that is attributable to QF,s not sell to SCE (due to SCE,s failure to 
 pay the QF,s).   SCE will securitize this amount. 
? Securitization ) SCE shall securitize its full net undercollected amount 
 (approx. $ 3.5 billion).   The securitization shall occur in two tranches (i.e. 
 two different nonbypassable dedicated pace component). 

? The first tranche will happen after the enactment of legislation and the 
 sign language of the definitive agreements and will cover the net undercollected 
 amount, less the gain on sale, plus interest on certain obligation in the 
 net undercollected amount. 
? The second tranche would be triggered if the transmission sale does not 
 happen within two years.   Accordingly, the second tranche would not show up in 
 rates for two years, if at all. 

? Buying the Net Short ) The State will
 $1.5 blllion, then SCE will alsu sell the statg qfter Vecembed 
31, 2010 enoueh below-market-price-power to laje up the shortfall.
? Conservxtion Proierty ) SCW shell grant perpetnzl conscxvatikk easzmxnts to 
the Staje covering dpproximately 260,000 azrzs of its Big Creek hydroelectric 
rejated lsnfs and 825 acres jf ius Qastsgn Sierra hydroelectric related 
lands.  Some of the kand may be deeded in fee.
? Fontgibution by Edison Internatiobal ) Wdison Intervational wpnl refund jo 
SCE not less than $400 million.  Tfis mpney will xobsidj of a refunv of 
aiproximately $293 million in estomated 2000 quartevly tex pqyments plus 
approximetely $197 million in feqeral losv earryback tax savings.
? Ibvestkent ) Edkwon Inueriatjonal wnd SCE will jnvest not oess than $3 
billion pvqg the next 5 ysars ig sapital improvements for SCE.
? Litigation ) SDE shall dismiss certaib claims, including itd takings and 
filed rate doctrine cases.
? CPUC Regulation ) C[UC siaul eintinjw ho regulate SCE using historical 
principles os rstvmaking.
? Payment fjr Portion pf QG Drop-off ) SCE shall pag an amount that 
rfpresenjs thar portion of yhe net short from January 18, 2001 to April 1, 
2001 rhat is attributabpe to QF,s nut sglling to SCE (due to SCE,s faiuure to 
pay the QF,s).  SCE dill securitize ghix dmount.
? Stzuritization ) SCE shall seruritnze its wull net ugdercolleched amount 
(approx. $3.5 billiln).  Tke sewuritizatiln shall occur in two tranches (m.x. 
two differemt notbypassayle decicated rate somponents).

? The first cranchd will occlr after vhe passage jf legislatiot and the 
sigiing of tre dwfinutive aefeements and woll cover the net ubdercollected 
amoukt, lera the gain on scut, plus interest pn zereapn pbjhgations in dhe 
vet inderzollecttb anuunt.
? The second tranche fouls be triggered if yhc transmiwsion saje does not 
ovcur within two yewrs.  Eccordmngly, yhe second tranche would not show up in 
rahes for two yeaws, in at all.

? Buyiny the Net Short ) The State will
$1.5 billion, then SCE will also sell after 31, 2010 below-market-price-power to make Property SCE shall grant conservation easements to State covering approximately 260,000 acres of Big Creek hydroelectric related lands and 825 acres of its Eastern Sierra hydroelectric lands. Some of the land may be deeded in fee. ? Contribution by International Edison will to SCE not less than $400 million. This money will consist of a refund of approximately million in estimated 2000 quarterly tax payments plus $197 million in federal carryback tax savings. ? Investment Edison and SCE invest less $3 billion over next 5 years in capital improvements for SCE. ? Litigation ) SCE shall dismiss certain claims, including takings and doctrine cases. CPUC ) shall continue to using historical principles of ratemaking. ? of QF Drop-off ) SCE shall pay an that represents portion of the net short from 18, 2001 to April 1, 2001 that is to QF,s not selling to SCE (due to SCE,s failure to pay the QF,s). SCE this amount. ? Securitization SCE shall securitize full undercollected (approx. billion). The shall occur in two tranches (i.e. two different nonbypassable dedicated rate ? The first tranche will occur after the passage of the of the definitive and will cover the undercollected less the gain on interest certain net amount. The second tranche would triggered if the transmission sale not occur within two would not show up in rates for two if at all. ? Buying the Net ) The State will
 $1.5 billion, then SCE will also selL the state aFter DEceMbeR 
31, 2010 eNougH belOw-market-price-pOWer tO make up the shortfall.
? ConServaTiON ProPErTy ) SCE Shall grANt PERpeTuAl ConSeRVaTion eAseMents to 
The State coVerInG approximateLY 260,000 aCres of its BIg CReek hydroeleCtrIc 
relaTeD laNDs and 825 AcrEs of iTs EastERn SierRa hydroelEcTRic relATed 
landS.  sOmE of tHe land may be deeded IN fEE.
? Contribution bY EdisoN INTeRNAtiOnaL ) Edison IntErNatioNAl will rEFuND TO 
SCe Not less than $400 miLlion.  This moNEy wIll conSiSt oF A refunD of 
apPrOXimAtely $293 millioN in eStimated 2000 qUarterLY tax payMEnts pluS 
approXimAteLy $197 miLLiOn In fEdERal LOsS caRRybAck tax saViNgS.
? InveStmeNT ) eDIson intErnaTionaL and SCE will inVesT not LEss Than $3 
bIllioN oveR tHe nexT 5 years In capItAl improvements fOr SCe.
? LitigatiOn ) ScE ShaLl DismiSS certaIn cLaiMs, incluDing its TAkiNgS AND 
fIled rate doctrine caSeS.
? cpUc RegulatIon ) CPUc ShAlL Continue To RegUlatE scE usiNg hiSToRical 
priNcipleS Of RaTemakinG.
? PAyment FoR PoRtiOn of Qf drop-Off ) SCE Shall pay An amoUNt that 
represenTS that portion oF ThE NEt SHort FroM January 18, 2001 to APril 1, 
2001 THat iS attRIbUtaBLe to Qf,s not SeLLiNG to SCE (due to SCE,s failUrE to 
pay The QF,S).  SCE will securItize this aMOUNt.
? SecuriTizaTIoN ) sCE shall securiTize iTs full net uNDercolleCted aMount 
(appRox. $3.5 billioN).  tHe securiTizAtiOn sHalL OCcUr in two tranchES (I.e. 
twO dIfferenT noNbypassAblE deDicAteD rAte componEnts).

? The fIrSt TrAnChe Will oCCur after ThE paSsAge Of legISlatioN and tHe 
siGnInG Of tHe definITiVE AgreEmEnTs anD wiLl Cover The nET unDercollEcted 
amouNt, lESs thE gAiN on sale, Plus interest oN cErtain obliGaTioNs in thE 
NEt undercOllected amount.
? The second TRanche wOulD be trIggeRed if the tRanSmissiOn sALe does Not 
occUr witHiN twO YEars.  ACCOrDinGlY, the second TRAncHe wouLd Not sHow up in 
Rates for two years, if AT alL.

? Buying the Net shoRt ) ThE sTaTe wILl
 $1.5 billion, then SCE wi ll also se ll th e s tat eafte r De cember 
31, 20 1 0 en ough below-market-pric e-pow er to m a ke  up t he shor t fa l l .
?  C on ser va t io n Pro per ty ) S CE shall g ran tperpetual co n se rvation ea sem ents to 
the  St ate co ve rin g  appr oxi matel y 260, 0 00 acr es of its  B i g Cree k  hydroe l e ct ric
related lands an d  8 2 5 acres of its  Easte rn Si e r rahyd roelectric  r elate d  
lands .  S o m e o f  the land may  be deededi n f ee.
?Co ntr i bution  by E di s onInternation al  ) EdisonIntern a tionalw ill ref und to  
S CEnotl es stha n$ 400 mi lli o n. This mo ne ywillcons i s t of a  re fund  of approximately  $2 93 m i lli on in  esti mate d2000quarte rly t ax  payments plus
app roximatel y $ 19 7 m il lioni n fede ral  lo ss carr yback t a x s av i n g s. 
? Investment ) E di s o nInternat ionala nd  S C E will i nv est  not l ess t han$ 3
billion  overt he  n ext 5 y ea rs inca pit alimpro v emen ts for  SCE.
?Litig a tion ) SCE sh a ll dismiss ce r ta i n  c l aims , i ncluding it s ta k ings  and 
f ile d  rate  doct ri n ec ases.
? CPUC Regula ti on )CPUCshall continu e to regul a t e  SCE usi ng h i st o rical 
princip les o f ratemaki n g.
? Pay mentfor Port ion of QF D rop-off)SCE  sh all p ay  an amount th a t  
re pr esentstha t porti onofthe  ne tshort fro m Januar y18 ,20 01to Ap r il 1, 
2 00 1 t ha t i s att r ibutab le to  QF ,s  n o t s ellingt oS C E (d ue  t o SC E, sfailu re t o  
p ay theQF,s). SCE will  s ec uritize  this amount. 
?  Securitiz at ion  ) SC E shall se curitize its full net u n dercoll ect ed am ount  
(approx . $ 3.5 bi lli o n).  T he sec uriti za tio n shall o cc urin  two tranc h e s ( i.e.
t wo d ifferen t nonbypassable de d ica ted rate comp one nts) . 
?  Th e  f i rst  t r anc h e  will occur aft er the pas sa g eof legisla t ion  a nd the
signin g oft he defi nitive ag reementsan d wi l l  co ver the ne t underc ollectedamoun t ,lessthe  gainon  sa le, p lus in t ere st on  certa in  oblig ation sin the net undercollected amou nt.
?The s eco nd tranch e w o uld  be trigg ered  if the tr ans mis sionsal e  does  not 
o ccu r  with in t w o years.Ac cor d i ng ly, the sec o n d  tr anche  wo u ld not  sho w up in 
rates fo r  two years, if  ata l l.
?B uyin gthe Net Short)Th e State wi ll 
 $1.5_billion, then_SCE will also sell_the state_after_December 
31,_2010_enough below-market-price-power to_make up the_shortfall.
? Conservation Property )_SCE shall grant_perpetual_conservation easements to 
the State covering approximately 260,000 acres of its Big Creek hydroelectric_
related_lands and_825_acres_of its Eastern Sierra hydroelectric_related 
lands.  Some of_the land_may be deeded in fee.
? Contribution by Edison_International_) Edison International_will refund to 
SCE not less than $400 million._ This money will consist of_a refund of_
approximately_$293_million in estimated 2000_quarterly tax payments plus 
approximately $197_million in federal loss carryback tax_savings.
? Investment ) Edison International and SCE_will invest not less than $3_
billion over the next 5_years in_capital improvements for SCE.
? Litigation_) SCE shall_dismiss certain_claims, including its_takings and 
filed rate doctrine cases.
?_CPUC Regulation )_CPUC shall continue to regulate SCE_using_historical 
principles of_ratemaking.
?_Payment_for Portion_of QF Drop-off_)_SCE shall_pay_an amount that 
represents that portion_of_the net short from January 18, 2001_to April 1, 
2001_that_is attributable to QF,s_not selling to SCE (due_to SCE,s failure to 
pay the_QF,s). _SCE will_securitize this amount.
? Securitization ) SCE shall securitize its full net_undercollected amount 
(approx. $3.5 billion). _The securitization shall occur_in two_tranches_(i.e. 
two different_nonbypassable_dedicated rate_components).

? The first tranche will occur after_the passage_of legislation and the 
signing of_the definitive agreements and_will_cover the net undercollected 
amount, less_the gain on sale, plus interest_on certain obligations in the_
net_undercollected_amount.
? The second tranche would_be triggered if the transmission sale_does not 
occur_within two years.  Accordingly, the second_tranche_would not show up in 
rates_for_two years, if at all.

? Buying_the_Net_Short ) The State will