-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, FPViisxS2U7pPheQWF9XzIY8nG45wveZ2E0h9jgD5oakOOifyuNQbfryOHnO29/5 eEw5b8cW4ii0OtUT8flBfg== 0000827052-03-000118.txt : 20030822 0000827052-03-000118.hdr.sgml : 20030822 20030822130620 ACCESSION NUMBER: 0000827052-03-000118 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20030821 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 20030822 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EDISON INTERNATIONAL CENTRAL INDEX KEY: 0000827052 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 954137452 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-09936 FILM NUMBER: 03861914 BUSINESS ADDRESS: STREET 1: 2244 WALNUT GROVE AVE, STE 369 STREET 2: P O BOX 800 CITY: ROSEMEAD STATE: CA ZIP: 91770 BUSINESS PHONE: 6263022222 MAIL ADDRESS: STREET 1: 2244 WALNUT GROVE AVE, STE 369 STREET 2: P O BOX 800 CITY: ROSEMEAD STATE: CA ZIP: 91770 FORMER COMPANY: FORMER CONFORMED NAME: SCECORP DATE OF NAME CHANGE: 19920703 8-K 1 eixaug8k03.htm EDISON INT'L. 8-K ON CA SUPREME COURT DECISION Edison International 8-K on CA Supreme Court Decision
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                                                   UNITED STATES
                                        SECURITIES AND EXCHANGE COMMISSION
                                              Washington, D.C. 20549



                                                     FORM 8-K



                                                  CURRENT REPORT

                      Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934




                         Date of Report (Date of earliest event reported): August 21, 2003



                                               EDISON INTERNATIONAL
                              (Exact name of registrant as specified in its charter)



                 CALIFORNIA                           001-9936                              95-4137452
        (State or other jurisdiction                 (Commission                         (I.R.S. Employer
              of incorporation)                     File Number)                        Identification No.)



                                             2244 Walnut Grove Avenue
                                                  (P.O. Box 800)
                                            Rosemead, California 91770
                           (Address of principal executive offices, including zip code)

                                                   626-302-2222
                               (Registrant's telephone number, including area code)


===================================================================================================================










Items 1 through 4, 6, and 8 through 12 are not included because they are inapplicable.

         This current report and its exhibit include forward-looking statements.  These forward-looking
statements are based on current expectations and projections about future events based on knowledge of facts as
of the date of this current report and assumptions about future events.  These forward-looking statements are
subject to various risks and uncertainties that may be outside the control of Edison International and its
subsidiaries.  Edison International has no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events, or otherwise.

Item 5.  Other Events.

CPUC Litigation Settlement Agreement

         On August 21, 2003, Southern California Edison Company (SCE), the largest subsidiary of Edison
International, issued a press release announcing that the California Supreme Court had issued a decision
answering certain questions certified to it by a federal court of appeals regarding SCE's settlement agreement
with the California Public Utilities Commission (CPUC).  The California Supreme Court answered each question by
affirming that the settlement conformed to California state law.  A copy of the press release is attached as
Exhibit 99.

         Background

         In 2001, SCE and the CPUC entered into a settlement of SCE's federal district court lawsuit against the
CPUC, which sought a ruling that SCE was entitled to full recovery of certain procurement-related costs.  A key
element of the settlement agreement was the establishment of a $3.6 billion regulatory balancing account, called
the PROACT, as of August 31, 2001.  A consumer advocacy group known as The Utility Reform Network, or TURN, and
other parties appealed to the federal court of appeals seeking to overturn the stipulated judgment of the
district court that approved the settlement agreement.

         On September 23, 2002, the United States Court of Appeals for the Ninth Circuit issued an opinion that
affirmed the district court on all claims, with the exception of challenges founded upon California state law,
which the appeals court referred to the California Supreme Court.  The appeals court concluded that none of the
substantive arguments based on federal statutory or constitutional law compelled reversal of the district court's
approval of the stipulated judgment.  However, the appeals court stated in its opinion that there was a serious
question whether the settlement agreement violated state law, both in substance and in the procedure by which the
CPUC agreed to it.  The appeals court added that if the settlement agreement violated state law, the CPUC lacked
capacity to consent to the stipulated judgment, and the stipulated judgment would need to be vacated.  The
appeals court indicated that, on a substantive level, the stipulated judgment appeared to violate California's
electric industry restructuring statute providing for a rate freeze.  The appeals court also indicated that, on a
procedural level, the stipulated judgment appeared to violate California laws requiring open meetings and public
hearings.




Page 2



         Because federal courts are bound by the pronouncements of the state's highest court on applicable state
law, and because the federal appeals court found no controlling precedents from California courts on the issues
of state law in this case, the appeals court issued a separate order certifying those issues in question form to
the California Supreme Court and requested that the California Supreme Court accept certification.  The
California Supreme Court accepted the certification, reformulated one of the certified questions as SCE had
requested, and set a briefing schedule.  After the completion of the filing of briefs by the respective parties,
including supplemental briefs requested by the California Supreme Court concerning an issue related to
California's open meeting laws, the parties made oral arguments before the California Supreme Court at a hearing
on May 27, 2003.

         California Supreme Court Decision

         In its decision on August 21, 2003, the California Supreme Court concluded that the settlement between
SCE and the CPUC did not violate California law in any of the respects raised by the federal court of appeals.
Specifically, the California Supreme Court concluded that (1) the commissioners of the CPUC had the authority to
propose the stipulated judgment in light of the provisions of California's restructuring statute, AB 1890;
(2) the procedures employed by the CPUC in entering the stipulated judgment did not violate California's open
meeting law for public agencies; and (3) the stipulated judgment did not violate California's public utilities
code by allegedly altering rates without a public hearing and issuance of findings.

         Now that the California Supreme Court has issued its decision on the certified questions, the matter
will return to the Ninth Circuit for final disposition, subject to any efforts by TURN to seek a rehearing before
the California Supreme Court or pursue further federal appeals.  In the meantime, the case is stayed in the
federal appellate court.

         Pending a final outcome of the proceedings, SCE continues to operate under the settlement agreement.  At
July 31, 2003, the PROACT regulatory balancing account was overcollected by $148 million.  SCE expects that the
overcollection will be returned to customers through a different regulatory balancing account to be approved by
the CPUC.  SCE continues to believe it is probable that ultimate recovery of its past procurement costs through
regulatory mechanisms, including the PROACT, will be validated.  However, SCE cannot predict with certainty the
outcome of the pending legal proceedings.

Item 7.  Financial Statements and Exhibits.

(c)      Exhibits

         99       Press release about California Supreme Court decision




Page 3

                                                    SIGNATURES

         Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this
report to be signed on its behalf by the undersigned hereunto duly authorized.


                                                                EDISON INTERNATIONAL
                                                                      (Registrant)



                                                               /s/ KENNETH S. STEWART
                                                  -------------------------------------------------
                                                                 KENNETH S. STEWART
                                                  Assistant General Counsel and Assistant Secretary


AUGUST 22, 2003




EX-99 3 praug038k.htm PRESS RELEASE ON CA SUPREME COURT DECISION Press Release on CA Supreme Court Decision
SOUTHERN CALIFORNIA EDISON COMPANY LOGO                                           Media Statement

FOR IMMEDIATE RELEASE


                                                                 Contact:  Corporate Communications: (626) 302-2255
                                                                                                 www.edisonnews.com

                                     SCE RESPONDS TO CA SUPREME COURT DECISION

         The California Supreme Court today issued its response to questions of state law submitted by the U.S.
Ninth Circuit Court of Appeals regarding the appeal by The Utility Reform Network (TURN) of the settlement
agreement between Southern California Edison (SCE) and the California Public Utilities Commission (CPUC).  The
court answered each question by affirming that the settlement conformed to state law.  On Sept. 23, 2002, the
Ninth Circuit Court unanimously rejected all federal law challenges to the settlement but asked the California
Supreme Court to rule on concerns based on alleged violations of California state law.  In response to the
court's decision, SCE issued the following statement.

         ROSEMEAD, Calif., Aug. 21, 2003 - SCE is pleased the California Supreme Court has affirmed that the
utility's 2001 settlement agreement with the CPUC complied with California law.

         Said SCE Chairman John E. Bryson:  "Today's landmark decision should clear the path for the federal
court to uphold our settlement in its entirety.  Recent events illustrate even more clearly the significant role
electricity plays in our economy.  The court's decision should enable us to continue our leadership role in
enhancing the electric system and ensuring continued reliable service to our customers."

         The California Supreme Court was responding to three state-law questions posed by the federal Ninth
Circuit Court of Appeals in a decision issued in September 2002.  In that decision, the Ninth Circuit rejected
all federal law challenges to the stipulated judgment that approved the settlement.  The Ninth Circuit stated
that the only remaining question regarding the validity of the stipulated judgment was whether the CPUC, by
agreeing to the settlement, exceeded its authority under California law.  The California Supreme Court has now
ruled that the CPUC did not exceed its state-law authority.  The ruling by the California Supreme Court sets the
stage for the Ninth Circuit to act expeditiously in issuing a decision that finally resolves TURN's appeal in a
manner consistent with the California Supreme Court's guidance.

         Pursuant to the settlement agreement, the CPUC authorized SCE to establish an account to track the
recovery of its crisis-related costs.  That collection process is now complete and, effective Aug. 1, SCE was
able to reduce rates for all its customers.

                                                       # # #

         An Edison International company, Southern California Edison is one of the nation's largest electric
utilities, serving a population of more than 12 million via 4.5 million customer accounts in a 50,000-square-mile
service area within central, coastal and Southern California.

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