8-K

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):  December 12, 2006

EDISON MISSION ENERGY

(Exact name of registrant as specified in its charter)

DELAWARE	333-68630	95-4031807
(State or other jurisdiction of	(Commission file	(I.R.S. employer
incorporation)	number)	identification no.)

18101 Von Karman Avenue, Suite 1700
Irvine, California  92612
(Address of principal executive offices, including zip code)

949-752-5588
(Registrant’s telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o    Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

oSoliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

oPre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

oPre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

This current report and its exhibits include forward-looking statements. Edison Mission Energy has based these forward-looking statements on its current expectations and projections about future events based upon knowledge of facts as of the date of this current report and its assumptions about future events. These forward-looking statements are subject to various risks and uncertainties that may be outside Edison Mission Energy’s control. Edison Mission Energy has no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This current report should be read with Edison Mission Energy’s Annual Report on Form 10-K for the year ended December 31, 2005 as amended by Amendment No. 1 on Form 10-K/A and subsequent Quarterly Reports on Form 10-Q.

Section 8 – Other Events

Item 8.01  Other Events.

On December 12, 2006 Edison Mission Energy’s wholly-owned subsidiary, Midwest Generation LLC, announced that it had reached an agreement in principle with the Illinois Environmental Protection Agency to reduce mercury, nitrogen oxide and sulfur dioxide emissions at Midwest Generation’s Illinois coal-fired power plants.

A copy of the press release announcing the agreement in principle is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.

Implementation of the agreement will require further regulatory proceedings in order to become effective, and once implemented the agreement will provide reasonable certainty of the timing and amount of emissions reductions which will be required of Midwest Generation’s Illinois plants for these pollutants through 2018.  No assurance can be given that all required regulatory approvals will be received and if not received Midwest Generation will remain subject to existing and future requirements as to emissions of these pollutants.

If the agreement is implemented as contemplated, Midwest Generation will be required to achieve specified emissions reductions through a combination of environmental retrofits or unit shutdowns. The agreement contemplates three phases with each phase relating to one of the pollutants involved. Capital expenditures will be required for each phase.

The first phase involves installing by 2009 activated carbon injection technology for the removal of mercury, a technology which Midwest Generation has been testing at some of its plants. Capital expenditures relating to these controls are currently estimated to be approximately $60 million.

The second phase requires the installation by the end of 2011 of additional controls to remove nitrogen oxide on several units which do not currently have these controls. Capital expenditures for these controls are currently estimated to be approximately $450 million.

Thereafter, during the third phase of the plan, the focus will be on the reduction of sulfur dioxide emissions.  Midwest Generation will be required for several units at its six plants in Illinois either to place controls on these units between 2012 and 2018 for this purpose or to remove them from service.  Midwest Generation will consider many factors in making this choice including, among others, an assessment of the cost and performance of environmental technologies and equipment, the remaining estimated useful life of each affected unit and the market outlook for the prices of various commodities including electrical energy and capacity, coal and natural gas.  In view of the many factors involved,

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Midwest Generation has not at this time determined what actions it may take at each affected unit to provide for optimal compliance with the agreement during its third phase.  At this time, however, additional capital expenditures during the third phase of the plan are currently estimated as being in the range of approximately $2.2 billion to $2.9 billion depending on the number of units on which controls are placed versus the number which are removed from service.  For a number of the reasons described above, actual capital expenditures may vary substantially from the above estimates.

Section 9 – Financial Statements and Exhibits

Item 9.01  Financial Statements and Exhibits.

(d)           Exhibits

99.1         Press release of Midwest Generation, LLC dated December 12, 2006.

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SIGNATURE

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 thereunto duly authorized.

Edison Mission Energy
Date:	December 12, 2006	/s/ W. James Scilacci
		W. JAMES SCILACCI Senior Vice President and Chief Financial Officer

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EX-99.1

Exhibit 99.1

FOR IMMEDIATE RELEASE

Tuesday, December 12

Contact:

Doug McFarlan

Midwest Generation

312/583-6024, or 312/343-2561

Midwest Generation, Governor Agree On Long-Range Emissions Reduction Plan

Chicago-based independent power producer Midwest Generation announced today that it has reached agreement with Illinois Governor Rod Blagojevich on a comprehensive, long-range plan that will begin reducing mercury emissions from its power plants 18 months ahead of federal regulations, followed by multi-year programs to further cut other emissions at each of the company’s six plants in Illinois.

As part of the agreement, Edison Mission Group (EMG), Midwest Generation’s parent company, and the state have committed to work jointly to develop up to 400 megawatts of new wind power projects, provided the company can obtain “commercially reasonable” terms for building and selling the output from the projects.  EMG is the fifth largest owner of wind energy projects in the U.S,. and is developing the proposed 200-megawatt Big Sky wind project near LaSalle.

Further, the company and state have agreed to work jointly on the terms and conditions that would be required for Midwest Gen to build new “clean coal” generation which would gasify Illinois coal to produce electricity and permanently sequester carbon dioxide emissions.

The long-range emissions plan has three components.

·Emissions of mercury will be reduced by the installation of mercury controls at every Midwest Gen facility by July of 2009.  Due to special concerns about mercury in Lake Michigan, controls will be installed on plants in the cities of Chicago and Waukegan by July of 2008.  As a result, installation of mercury controls will begin 18 months ahead of federal regulations and a year ahead of more stringent state rules that have been approved by the Illinois Pollution Control Board and which may be acted on by the General Assembly’s Joint Committee on Administrative Rules today.

·The emission rate for nitrogen oxide – a contributor to smog and ozone — will be reduced by 66 percent as of Jan. 1, 2012.  That reduction is on top of a 50 percent reduction Midwest Gen has achieved since acquiring its Illinois plants in 1999.

·The emission rate for sulfur dioxide — a contributor to acid rain and fine particulates — will be reduced by 78 percent between 2012 and 2018.  That reduction is on top of a 30 percent reduction Midwest Gen has achieved since acquiring its Illinois plants.

The reductions in nitrogen oxide and sulfur dioxide emissions are designed to help the city of Chicago and the metropolitan area comply with federal regulations for ozone and fine particulates.

By the end of the long-range plan, every Midwest Generation station that remains in operation will have additional pollution control equipment for nitrogen oxide and sulfur dioxide emissions.  As part of its implementation plan, the company plans to shut down the three smallest generating units in its fleet — two units at the Will County Station in Romeoville and one at its Waukegan Station — between the end of 2007 and the end of 2010.  The company also has committed that its smallest plant — the single-unit Fisk Generation Station in Chicago — will either have additional controls for sulfur dioxide emissions or be shut down by the end of 2015.  The same agreement to shut down or install additional controls applies to the Waukegan Station by the end of 2014 and to the Crawford Station in Chicago by the end of 2018.

“This agreement means cleaner air and cleaner water, and that means fewer health problems for children, for pregnant women, and for people all across Illinois. It took a lot of work to get to this point, but thanks to the environmental community, Midwest Generation and the work of people like our EPA Director Doug Scott, we’ve achieved something no other state has done. And the result means a cleaner, healthier state,” said Governor Blagojevich.

“This agreement provides long-term certainty for both the state and our company, helps the state and city of Chicago achieve their clean air goals, and allows us to plan and manage significant capital investments and projects in a reasonable timeframe,” said Ted Craver, Edison Mission Group CEO.  “We came to Illinois in 1999 committed to environmental leadership, we delivered with immediate emission reductions at all our sites, and now we will build on that record with a steady stream of additional reductions over the next decade.”

“The agreement recognizes the importance of Midwest Generation’s plants to reliability of the electric system and carefully balances environmental concerns with the need for a diverse fuel supply that includes coal, our most abundant domestic energy resource, “ Craver added.  “Equally important is our strong interest in working with the governor to grow our business in clean coal and renewable energy generation in Illinois.”

Craver said the company is especially pleased to help the city of Chicago assume national leadership in reducing mercury emissions from power plants.  The mercury removal technology the company will use was tested last summer at the Crawford Generation Station in Chicago through a partnership between Midwest Gen and the U.S. Department of Energy.

Edison Mission Group and the state have entered into a memorandum of understanding on the agreement.  The mechanics for implementing the agreement will be submitted to the Pollution Control Board.

Headquartered in Chicago, Midwest Generation operates six power plants in Illinois: the Fisk and Crawford stations in Chicago, Waukegan Station, Joliet Station, Will County Station in Romeoville and Powerton Station in Pekin.  The company has approximately 1,200 employees, about 70 percent of whom are represented by the International Brotherhood of Electrical Workers.

Midwest Generation is a subsidiary of Edison Mission Group of Irvine, Calif., which manages the competitive power generation businesses of Rosemead, Calif.-based Edison International (NYSE:EIX).  Edison International is an electric power generator and distributor, and an investor in infrastructure and renewable energy projects with assets totaling more than $36 billion.  The company is comprised of a regulated utility, Southern California Edison, as well as EMG.

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