ML18192B808

Southern California Edison Company, 1974 Annual Report

ML18192B808
Person / Time
Site:	Palo Verde
Issue date:	07/11/2018
From:	Southern California Edison Co
To:	US Atomic Energy Commission (AEC)
References
Download: ML18192B808 (32)

Text

, Southern California Edison Company annual Report U 4 Southern California Edison Compaoy Southern California Edison Company prov'Ides electric service in a yo,ooa square-mile area of central and southern California.

This'area includes nearly 8oo cities and communities with a population of more thatI yIh Inillion peopIe." scE owns and opyrates, y6 hydroelectric plants, za fossil-fueled steam electric generating plants, two combustion turbine plants, one diesel electric generating plant,and operates the 8o%owned , San Onofre Nuclear Generating Station.In addition, it operates the two coal-fired steam electric'enerating units at the g6%owned Mohave Generating Station in Nevada, and owns y8/o interest U in two coal-fired steam electric generating units at Four Corners, New Mexico.The Company, incorporated in z9og under the laws of California, is a public utility subject to regulation by the California Public Utilities Commission and the Federal Power Commission.

Certafn aspects of its business are subject to regulation by other federalstate and.local agencies.u Service Territory 4 Extra-High Voltage (EHV)Transmission Lines e Pprtland U~o CICilo, OREGON MONTANA, U>U,,~'~~ID AEIO UU WYOMING r o Salt Lake C~ty$an Francisco 0 Ul'I NEVADA'os Vcgas 0 UTAEI Kaiparowits o (proposed) 0 0 GOGO V.ColLO 0 Four Corners U Mohave ARIZONA NEW Ca!alina istand~'an Onofro o phoenix Annual Report x.974 Contents Letter to Shareholders Financial Review.Review of Operations Financial Statements~

.~~~0~Capital Stock-Price and Dividend Information

.Summary of Operations and Comparative Statistics of Progress Management's Discussion and Analysis of Summary of Operations 4.12.23.24.26 Highlights Earnings Per Share 1974$4,10 1973$2.70 increase 51.9 Common Dividends Paid Per Share.$X.65$1.56 5.8 Gross Utility Plant (000).Operating Revenues (000)Operating Expenses (000).Fuel (000)(a).Taxes (000)(a)Net Income (000)Earnings Available for Common and Preferred Stock (000)Payrolls (000)Number of Customers.Kilowatt-Hour Sales (000)Main System Peak (kw)Operating Capacity (kw)(b).Original$4r 766,175$4,4S8,631$Ir4831432$1 079I348 6.9 37.4$X 82,6XO$118,889 53.6$208,892$198,181 5.4 2,691,691 51,089,981 9,997,000 X3,494,849 2,626,492 54,092,934 10,253,000 13,447,095 2.5 (5.6)(2.5)0.4$1rX721768$84Sr308 38 7$505r209$321 080 57 3$222,056$135,128 64.3$2ISr298$147r731 47 8 (a)Included in Operating Expenses.(b)Includes gg6,gSy kw available from others in xg74 and go4,6go kw in xg7y.

To Our More Than xylo,ooo Shareholders Our nation now faces critical economic and energy problems which directly affect our industry and Company.These problems are receiving increased recognition and attention, and we are encouraged that governmerit leaders have recognized that a viable electric utility industry is essential Eor energy selE-sufficiency and our nation's economic well-being.

Management's efforts during the year were concentrated on coping with inflationary pressures and escalating environmental, fuel and capital costs, while working to effect operating economies and to maintain reliable electric service to our customers.

The following paragraphs highlight the principal activities and results for the year: X974 Earnings Total revenues of$x.p billion, net income of$zx8 million and earnings per share of$4.xo were all at record levels and all represent substantial increases over x973.These results, however, should be viewed in perspective.

The increase in earnings is attributable almost entirely to unusually favorable weather conditions

-record rainfall-which made available more lower-cost hydroelectric power, and the availability of more natural gas fuel than had been anticipated.

Such extraordinary conditions cannot be counted on to recur in x975 and, consequently, earnings for x97g are expected to be substantially less.Dividends KWH Sales In March 1974, Edison's Board of Directors voted to increase the common stock quarterly dividend from 39 cents to 4z cents per share, equivalent to$x.68 per share on an annual basis.The Company has paid dividends on its common stock each year since its incorporation in x9o9.For many years, the Company experienced an annual compound growth rate of kilowatt-hour sales of 8-xo%.However, the response by our customers to the call for energy conservation, economic conditions and the escalating cost of electricity contributed to a decline in kwh sales in x974 from the preceding year.Therefore, planning for the x975-79 period, subject to frequent review, is based on a markedly reduced rate of growth as compared with the high levels of electric energy growth recorded in the x96os.Plant Construction The lower growth rate projected for the near-term future, coupled with adequate reserve margins of generation, made it possible in x974 for the Company to defer construction schedules Eor some generating plants and related facilities and to reduce projected five-year construction expenditures by nearly$x billion.Despite this reduction, however, our construction budget through x979 also sub-ject to periodic review, remains high-about$3.4 billion-and there will be a continuing requirement for relatively large amounts of external financing.

Rate Relief Recognizing a future need to attain a more adequate level of earnings, Edison filed an application in June with the California Public Utilities Commission requesting a general rate increase designed to produce a xg%return on common equity and additional annual revenues of approximately

$ygg million based upon the then anticipated x976 level of sales.We are ho'peful that public hearings can be completed and a decision issued by the latter part of z97p.Cost Controls Edison continues to operate under rigid cost controls in order to hold the line on controllable expenses.Substantial reductions in our operating and construction budgets have been made and a freeze on hiring, in effect since December x97p, has been extended into x97g.At the end of zg74, we were operating with 4g9 fewer employees than at year-end z97g.Organizational Changes After many years of valued service, for reasons of health, Mr.Vaile G.Young resigned from the Board of Directors on November zx.On that date, also, Mr.H.Russell Smith, President and Director of Avery Products Corporation, was elected to the Board, and Mr.Joe T.Head, Jr., Manager of the Power Supply Department, was elected Vice President.

X975 Outlook The outlook for x97g appears particularly uncertain.

Such unpredictable factors as governmental actions in response to President Ford's economic-energy pro-posals, regulatory decisions, economic conditions, weather and the degree of energy conservation by our customers could have a substantial impact ori our operations.

Further, rising electric rates inevitably generate both consumer and governmental concern and lead to misunderstanding and dissatisfaction among customers who are trying to conserve.Our fuel oil requirements for x975 are substantially covered and, barring unforeseen circumstances, we shall have adequate generating capacity to meet expected peak electric demands of our customers through x976.In our judgment, the problems confronting electric utilities, though formi-dable, are manageable.

We are planning Eor the challenges that lie ahead and counting on the continued dedicated support of our employees.

T.M.McDaniel, 7r.President lack K.Horton Chairman of the Board February zo, x975 Earnings and Revenues Increase In 1974 Edison Increases Common Dividend Financial Review Earnings for the year increased to$4.xo per share as compared with$2.70 on a lower average number of shares in xg73.The primary factors benefiting I974 earnings were the exceptionally high availability and use of lower-cost hydroelectric power and increased availability of lower-cost natural gas over what had been anticipated.

Lesser factors in-cluded a general rate increase which became effective in October xg73, and stringent internal cost controls.Total operating revenues for the year ended'1974 were$x.3 billion, up 37.4%over the$z.z billion re-ported for xg73.Fuel cost adjust-ments and the general rate increase contributed substantially to higher revenues.Net income for xg74 was$2 x8 million, up 47.8%from the previous year's figure of$<48 million.Kilowatt-hour sales of electric energy for the year totaled 3x billion kwh, down 3.6%from xg73 sales of 34 billion kwh, primarily reflect-ing continuing customer conserva-tion efforts and reaction to higher electric rates.Among the major cus-tomer categories, residential sales decreased 3.3%, while commercial and industrial sales were down 8.x%and 3.3%, respectively.

The net increase in the number of customers served at year's end was 63 lgg up 8.4%over the gain of 6o,x3x recorded for l973.The Company's Board of Directors voted on March zx to raise the com-mon stock quarterly dividend from 39 cents tc 4z cents per share.The increased dividend is equivalent to$x.68 per share on an annual basis,.compared with$x.36 previously.:

Edison last raised the dividend on common stock in December xg7x, when the quarterly rate was raised from 37i/z cents to 3g cents.Earnings per Share 0 retained earnings a dividends Company Seeks Rate Relief 1/70 19/1 x9$2 19/3 x9g4 Edison filed an application with the California Public Utilities Commis-sion (cr vc)on June 7, xg74, request-ing a general rate increase designe~'o produce additional annual reve-~nues of$33g million.The request is predicated upon a return on rate base of g.6%and a return on common equity of x3%based upon the then estimated level of kwh sales in xg76.The request was deemed necessary because of substantial increases in the cost of labor and materials, rec-ord high interest rates, higher costs related to environmental considera-tions, and general inflationary pres-sures.Public hearings on the rate increase application commenced in November and a decision by the cpvc is hoped for in the latter part of xg73.During the year, the Federal Power Commission (Frc)concluded public hearings on two Edison filings to increase rates for resale custom-ers.On September 7, xg73, and August 4 f974 pursuant to orders of the rpc, the Company increased Kilowatt-hour Sales billion kwh Fuel Costs Continue to Increase its wholesale base rates, designed to produce about Sx6 million and Sxz.8 million, respectively, on an annual basis, and on May z, zg74, made a fuel clause effective, all subject to refund.Certain resale customers have intervened to oppose these filings which are pending linal decisions by the Fpc.So 40 19/0 x971 19/2 i973 19$$Edison's fuel expenses for L974 were$5o5 million, a 57.3%increase over the$3zz million recorded in zg73.FOI'1975 fuel costs are estimated to total approximately Sz billion.In zg69, the Company's fuel ex-penses accounted for approximately zo cents out of each dollar of reve-nue.In zg74, these expenses ac-counted for 34 cents of each dollar received, but are expected to jump to about 5o cents in'1975.Fuel cost increases have been off-set largely through the application of a fuel cost adjustment procedure authorized by the cpvc in xg7z which permits the Company, subject to cpvc approval, to adjust billings to reflect increases or decreases in fossil fuel costs.On January 3, xg75, Edison applied for an increased fuel cost adjust-ment billing factor to become effec-tive February T 1975.Public hear-ings commenced in January and are scheduled to continue into March and involve not only the requested fuel cost offset, but the historical and projected operation of the fuel cost adjustment procedure.

On August 6, the cpvc authorized the Company to implement a special fuel cost adjustment for a zz-month period to offset certain fuel oil transportation charges.The special adjustment is expected to increase revenues by$9.7 million during the one year it will be in effect.During the past three years, Edison substantially increased its fuel oil storage capacity and its fuel oil inventory to help prevent fuel shortages resulting from possible interruptions in the supply of im-ported low-sulfur fuel oil.In an effort to offset a major part of the carrying costs incurred as a result of this action and the greatly increased price of fuel oil in inventory, Edison, in September, filed with the cpvc an application for an adjustment in rates which, iE authorized, would result in additional revenues estimated at approximately Sx7 million on an annual basis.Public hearings have been held and a decision is pending.On December x7, the cpvc ap-proved a modification to the fuel adjustment clause to permit Edison to recover its costs associated with certain fuel exploration and develop-ment programs carried on by one of its subsidiaries, Mono Power Com-pany.The Commission found rea-sonable an initial increment which, when implemented, would provide about Sz.7 million in additional annual revenues.

Source of Revenue Dollar: X974 SCE Raises Over$325 Million in New Financings 340 Residential z5C Commercial z4e Industrial ge Public authorities 5C Resale zC Agricultural xN Other at>8 9t Five issues of securities were com-pleted during x974 which raised in excess of$3z5 million in new capital to help finance the Company's con-tinuing construction program.A Sxoo million offering of z5-year First and Refunding Mortgage Bonds, Series CC, was sold on Febru-ary xx at a cost to the Company of S.x3%.Edison netted approximately

$49 million when two million shares of$23 Cumulative Preferred Stock, 8.83%Series, were sold on April 3o at a cost to the Company of 9.03%.An offering of four million shares of common stock was sold Novem-ber 7 at Sx7.75 per share, with net proceeds totaling approximately

$67 million.This marked the first issue of common stock by the Company since April xg7x.Also on November 7, a Sxoo mil-lion offering of 7-year First and Re-funding Mortgage Bonds, Series EE, was sold at a cost to the Company of g.z5%.In addition, on July 3o, Edison sold Sx3 million of First and Refunding Mortgage Bonds, Series DDP to the Use of Revenue Dollar: X974 California Pollution Control Financ-ing Authority at a cost to the Company of 7.x7%.In turn, the Authority sold to the public a like amount of its pollution control revi nue bonds, pledging fhe Edison bonds to secure the payments of the principal and interest.Edison maintained its double"A" bond rating during xg74, a year in which many utilities'ecurities were derated.Current plans for xg75 include the sale of up to Sx5o million of z5-year First and Refunding Mortgage Bonds scheduled for competitive bidding on March 6.Additional external financing will be required during the balance of xg75.The timing and amount will depend to a large degree on future capital re-quirements and market conditions.

365 Fuel and purchased power x5it'axes x34 Other operating expenses (principally labor)SN Depreciation SC Interest 7N Dividends 7Retained earnings reinves ted in the business 65 Maintenance 68 88'8>SC

>ocr Supply Review of Operations Energy conservation measures im-plemented by scE's customers, eco-nomic conditions, the higher price of electricity and the absence of any extended summer heat wave contrib-uted to a lower peak demand (g,gg7 megawatts) in xg74 than in T973 when a record xo,233 mw was recorded.In light of some uncertainty re-garding the continuing impact of conservation, economic conditions and rising electric rates upon future load growth, Edison's plans for new system capacity additions are subject to continuing evaluation and rescheduling.

For the xg73-79 time period, it is currently anticipated that system peak demand for electricity will grow at an average annual compound rate of about 3%.As a result of the lower estimated growth rate, the Company deferred construction schedules for three pro-posed power generation projects-a x,336-mw combined-cycle facility at Lucerne Valley, a x,p6-mw com-bined-cycle facility at Huntington Beach and a x,34o-mw HighTempera-ture Gas-cooled Reactor (HTGR)nu-clear plant near Vidal Junction.Edison, however, intends to continue its efforts to secure necessary regula-tory approvals for these facilities so that construction timetables can be moved forward in the event power demand increases more sharply than anticipated in the near future.During'l974, one new generating facility was completed.

The 34-mw combustion turbine generator at the Ellwood Energy Support Facility near Santa Barbara became opera-tional on August x.Generating Capacity million kw 0 reserve capacity 0 peak demand SCE Constructs and Plans Future Power Projects San Onofre Unl'ts2&3 1970 19)1'x9$1 19$)ig g The major portion of the Company's$483 million xg73 capital budget is devoted to construction of new generation facilities.

Initial site preparation work for two new So%Edison-owned xpoo-mw nuclear units at the existing San Ono-fre Nuclear Generating Station be-gan in March after a four-year delay during which Edison was engaged in the regulatory approval process and attendant lawsuits, some aspects of which ar'e still pending.Actual construction work commenced in November and if construction pro-ceeds as scheduled, the units will be placed in operation in x9Sx and xg 82.The new generation to be pro-vided at San Onofre, when fully operational, will enable Edison to utilize nuclear fuel instead of an esti-mated 2o to 23 million barrels of expensive imported low-sulfur fuel oil which otherwise would have to be used to produce the same amount of electric energy.

Long Beach Modernization Coohoater Expansion Big Creek Also, after an extended delay, all of the major regulatory approvals were obtained, and construction of the combined-cycle facility at the exist-ing Long Beach Generating Station was started in May.The addition of seven gas turbine units to the exist-ing steam turbines will increase the station's electrical output from x48 mw to 572 mw.Operation of the units is scheduled for late xg76.Regulatory delays in connection with the proposed 472"mw combined-cycle project at the existing Coolwater Generating Station have delayed the start of construction.

Subject to the obtaining of required regulatory approvals on a timely basis, the two new units comprising the project are scheduled for operation in xg77 and xg78.sca applied to the src to add a 35-mw generating unit at Big Creek 4 3 Powerhouse.

If approved, the addi-tional low-cost hydro energy will mean a savings of approximately 72 ooo barrels of low-sulfur fuel oil annually.Completion is scheduled for xg8o.San Joaquin Nuclear Project Construction Expenditures in millions of dollars G estimated On December 3o, Mono Power Company, a wholly-owned subsidi-ary of Edison, and subsidiaries of two other participating electric util~ties, signed a memorandum of inten~with Kaiser Industries Corporation to develop jointly a xz-million-ton-per-year underground coal mining facility which could provide fuel for the Kaiparowits Generating Station.Development of the electric gen-erating station and mining facilities is contingent on government approv-als and on availability of financing for the power and mining facilities.

The Company is participating with other utilities in a feasibility study of a proposed 5,o8o-mw nuclear generating station in Kern County, California.

Edison's share of this pro-posed project, if it proceeds, would be approximately zz%.i-~Yuma-Axis Station The Company plans to construct a z5-mw combustion turbine generator at the Yuma-Axis Generating Station near Yuma, Arizona, to supply the eastern California desert area with needed electric power.The facility is scheduled for operation in xg78.Kaiparotoits During the year, Edison, on behalf of participating electric utilities, en-tered into a preliminary letter of intent to purchase four steam-tur-bine generators for the proposed Kaiparowits Generating Station which is to be located in southern Utah.Public hearings and a decision by the Bureau of Land Management of the U.S.Department of the Inte-rior on the 3,ooo-mw coal-fired facil-ity are expected in xg75.Edison, currently with a 4o%interest in the project, has been designated Project Director and Operating Agent.>97o>97<>W>>975>%4'AS Fuel Supply SCE Explores for New Energy Resources Fossil fuels-low-sulfur oil, natural gas and coal-were utilized by Edi-son to generate 7o%of the electri-city transmitted to its customers in x974.Oil accounted for>8%of the electricity required, while natural gas accounted for x7%and coal,x5%.The remaining go%was met by nuclear and hydroelectric plants and purchased power.In xg74, the Company's low-sul-fur fuel oil usage totaled 55 million barrels, down from the 4z million barrels consumed in xg75.The re-duction was attributable principally to factors referred to earlier such as extremely favorable weather condi-tions and energy conservation meas-ures which enabled sca to save the equivalent of approximately zo mil-lion barrels of fuel oil.If average weather conditions are experienced in xg75, Edison expects to burn about 55 million barrels of oil.This higher-cost low-sulfur fuel oil is estimated to be required to meet 58%of scz's projected gener-ating requirements in xg75 as com-pared with x5%in xg7o.Lower-cost natural gas, the availability of which is diminishing in southern Califor-nia, is projected to be available for only 8%of electric generation, as compared with 57%in xg7o.Fuel oil requirements for xg75 are substantially covered and are ex-pected to be met by oil under contract and, in part, by utilizing a portion of the xg.7 million barrels of fuel oil in Company storage facilities at the end of xg74.In an effort to reduce dependency on the limited foreign sources for low-sulfur fuel oil required to meet air quality regulations, Edison is con-tinuing its exploration and develop-ment of coal, oil, gas, uranium and geothermal energy resources through its subsidiary, Mono Power Com-pany.Efforts to explore and develop geothermal energy have been con-fined to areas in and near the Com-Electric Generation by Source: 1974 R&D Directed Toward Fuels and Advanced Generation pany's service territory because of the necessity to tie new geothermal energy sources to new generating plants and related transmission fa-cilities.During the year, Mono and its joint venture partner submitted bids on two parcels of land and filed for leases on a number of other par-cels.To date, however, no leases have been obtained.58%Oil x7%Natural gas x5%Coal x5%Purchased and interchanged power xo%Hydroelectric 5%Nuclear 10%Edison expended a total of Sx5 mil-lion on research and development activities in xg74.Because of rising costs for fuel and increased concerns for the environ-ment, a large portion of Edison's Rao program is being concentrated on alternate fuels, advanced generation concepts and environmental research.The program includes efforts in de-veloping liquid fuel from coal, oil from shale, oil desulfurization, geo-thermal and solar energy, fuel cells and the fast breeder reactor.

Environmental Preservation Environmental Plant Expenditures in millions of dollars Et estimated Over the years, scE has initiated and advanced numerous programs de-signed to make meaningful improve-ments to environmental quality which could be justified by favor-able cost-benefit ratios.Such a cost-effective approach is of critical im-portance to the Company's efforts to reconcile shortages of new capital, America's need to achieve an accept-able degree of energy self-suffi-ciency, growing customer concern over rising electric rates, and the preservation of the environment.

During xg74, an estimated Spy million, or about so%of the Com-pany's Sy8o million capital expendi-ture program, was spent for environ-mental purposes.For x975, similar expenditures are forecast at Shoo million, or about ax%of scE's capital budget.Air and water quality, protection of marine life, and esthetics of facili-ties are the major areas, although the full range of environmental problems receives attention including pro-grams designed to monitor and evaluate the effects of coastal and inland power plants on the environment.

SCE Engaged in Air Quality Activities Water Quality Programs Receive Continued Attention Beginning in the middle xggos, Edi-eon initiated a program to reduce the oxides of nitrogen (NOx)emissions from its electric generating facilitie~

These activities led to the develo-~P ment and application of various tech-niques which have permitted NOx reductions up to go%.These operat-ing modes since have been adopted as an industry standard for the con-trol of NOx.Edison, as Project Manager, along with other utilities, is constructing and testing two experimental sulfur dioxide (SOg)and particulate re-moval scrubber modules at the exist-ing coal-fired Mohave Generating Station.Upon completion of the test-ing of these modules in early x975, one type is scheduled to be selected for a production scrubber full-scale installation to comply with the Clark County, Nevada, air pollution con-trol requirements.

In xgp4, scE marine biologists, to-gether with biological and oceano-graphic consultants, continued to carry out extensive studies of marin life in the near-shore water at Edi-Q son's coastal generating stations.Results of these studies provide in-creased understanding of the effects of power plant cooling water on the marine environment which aids the Company's effort to provide con-tinued marine life protection.

Edison is providing environmental information on the Company's marine water discharges to the U.S.Environmental Protection Agency (Ei A), to cooperate with that agency's development of national water qual-ity regulations.

Edison, along with other major electric utilities, is urging the EPA to balance environmental protection controls with reasonable cost-benefit ratios.g91o g91g g91g g9V g914 g91$

More Cable Installed Underground Affirmative Action The Company installed 7.3 circuit miles of underground higher-voltage 66 kv subtransmission cable in 1974.A total of nearly zo circuit miles now has been installed under the pro-gram initiated in 1970 to evaluate the performance and economics of this higher-voltage cable under actual operating conditions.

The trial instal-lation program is expected to be completed in 1973.In addition, more than 73%of the new customers served by Edison in T974 were'connected to underground lower-voltage distribution systems.Over a period of years, Equal Em-ployment Opportunity, a Company policy of long standing, has evolved into the concept of Affirmative Ac-tion.The ultimate objective of Edi-son's program is to employ qualified minorities and females throughout the workforce in numbers similar to their availability in the Company's labor market area.Edison has been operating under various Affirmative Action Programs for a number of years.In 197z, the Company developed a revised pro-gram for minorities and females which was accepted by the California Fair Employment Practice Commis-sion.Employment of Minorities and Females Increase The results of scE's Affirmative Ac-tion program, shown in the accom-panying chart which covers the period from year-end 1970 through year-end1974, were achieved despite the Company-wide, self-imposed hiring freeze which began in late%973.Despite the manpower reduc-tion, which could be expected to impact adversely entry level jobs, minorities as a percentage of the workforce increased from 14.9%to 16.1%and females from 14.7%to 1.3.4%during 1974.The Company is involved in con-ciliation and litigation proceedings relative to alleged discriminatory employment practices which are dis-cussed more fully in Note 3 of Notes to Financial Statements.

Percentage of Male, Female and Minority Employees at Year End 1970 and 1974<1>Male Year End 1970 1974 Female Year End 1970 1974 Black Year End 1970 1974 Oriental Year End 1970 1974 American Indian (Year End 1970 1974 Spanish-Surnamed American Year End 1970 1974 Total Minorities Year End 1970 1974 Management(>)

96.7 94.1 3.3 5.9 0.7 1.8 1.2 3.5 0.2 0.4 2.2 3.9 4.3 9.6 Non-Management(3) 84.2 80.5 15.8 19.5 4.0 6.4 0.6 1.3 0.2 0.6 4.5 10.5 9.3 18.8 Total Company 87.5 84.6 12.5 15.4(4)3.1 5.0 0.8 2.0 0.2 0.6 3.9 8.5 8.0 16.1(4)(x)Data as of December a7, xg74.(a)Management employees include the"Officials and Managers," and"Professionals" Affirmative Action Categories.(p)Non-Management employees include the"Technicians,""Office and Clerical,""Craftsmen,""Operatives,""Laborers" end"Service Workers" Affirmative Action Categories.

(4)Comparable figures in xg73 were x4.7%for females and x4.9%for minorities.

Southern California Edison Company SiatementS Of InCOme Year ended December SI, 1974 1973 Tlronsands of Dollars Operating Revenues: Sales (Notes I and 3)Other Total operating revenues$1,4'71,952 11,480 X,483,432$1,070,180 9,168 1,079,348 Operating Expenses: Fuel (Notes 3 and 9)Other operation expense (Notes 3 and 4).Maintenance (Note I).Provision for depreciation (Notes I and 6)Taxes on income (Note 6).Property and other taxes.Total operating expenses.505,209 23'7,409 91,905 116,189 X35,137 86,919 1,172s768 321,080 194,038 85,184 109,878 48,274 86,854 845,308 Operating Income 310,664 234,040 Other Income and Income Deductions:

Allowance for funds used during construction (Note I)Other-net(Notes 2and 6).Total other income and income deductions X6,163 4,430 20,593 10,190 1,229 11,419 Total Income before Interest Charges 33X,257 245,459 Interest Charges: Interest on long-term debt Other interest and amortization (Note I).Total interest charges.104,145 8,814 112,959 95,473 2,255 97,728 Net Income 218,298 147,731 Dividends on Cumulative Preferred and Preference Stock 35,688 28,842 Earnings Available for Common and Original Preferred Stock$182,610$118,889 Weighted Average Shares of Common and Original Preferred Stock Outstanding (000)44,580 43,965 Earnings Per Share (Note 8): Primary Fully diluted$4,10$3.89$2.70$2.60'12 The accompanying notes are an integral part of these statements.

southern caBfornr'a Edhon company Statements of Changes in Financial Position Year ended December 3r, 1974 X&73 Thousands of Dollars unds Provided By: Operations-Net income Non-fund items-Depreciation Equity in earnings in unconsolidated subsidiary companies (Notes 1 and 2)Allowance Eor funds used during construction (Note 1).Other (net).Total from operations

.(1,040)(995)(X6,163)5,822 323,106 (10,190)1,749 248,173$2I Sp298$X47 731 XX6,189 109,878 Long-term financing-Preferred stock.Long-term debt.Common stock Total from long-term financing.50,000 222,486 6/,200 339,686 75,000 4,558 79,558 Other sources-Construction advances and other Decrease in working capital items.Total from other sources.169 7,540 148,784 169 156,324 Total funds provided$662,96X$484,055 Funds Applied To: Construction additions-net.Less-allowance Eor funds used during construction (Note 1).Funds used for capital expenditures Advances to unconsolidated subsidiaries

.Dividends Repayment of long-term debt Other Increase in working capital items X6,X63 319,621 13,8/0 XI1,584 4,210 213,6/6 10,190 315,491 97,886 70,678 335p784$325 681 Total funds applied$662,961$484,055 Working Capital Changes: Temporary investments and notes payable (net)Fuel stock Other$X59,173$(202,420)X35,966 86,223 (81,463)(32,587)Increase (Decrease) in working capital$2X3,6/6$(148,784)The accompanying notes are an integral part of these statements.

southern california Edison company Balance Sheets ASSETS December 3r, X974 1973 Thousands of Dollars Utility Plant: Plant in service, at original cost less contributions (Notes I, 2 and 3)Less-Accumulated provision for depreciation (Notes I and 2)Net utility plant in service Construction work in progress (Note 4).Nuclear fuel, at amortized cost.Total utility plant X,OS X,024 3,269,553 422,834 22p764 3p7XS,XSX 958,210 3,130,890 352,352 17,179 3,500,421$4p320p577$4 089 100 Other Property and Investments:

Real estate and other, at cost-less accumulated provisions for depreciation Subsidiary companies, at equity including$IS,813,000 in 1974 and$76,000 in 1973 of accounts receivable (Notes I and 2).Total other property and investments

.15,605/2,961 88,566 11,949 58,051 70,000 Current Assets: Cash (Note 3)Temporary cash investments Receivables, less reserves for uncollectible accounts (Notes 1 and 7)Materials and supplies, at average cost Fuel stock, at cost (first-in, first-out)(Note 9)Prepayments and other (taxes, insurance, etc.)(Note 3)Total current assets 8,003 66,673 122,48'7 26,54/2/6,268 82,848 582,826 8,787 90,808 22,562 140,302 41,918 304,377 Deferred Debits: Unamortized debt expense (Note I)Other deferred charges Total deferred debits 3,427 X3,974 17,401 2,605 12,358 14,963$4,403,944$3,889,761'14 The accompanying notes are an integral part of these balance sheets.

CAPITALIZATION AND LIABILITIES December 81, 1974 1973 Thousands of Dollars Shareholders'quity:

Long-Term Debt (Notes 1 and 7)Original preferred stock Cumulative preferred stock Preference stock Common stock, including additional stated capital.Total capital stock-stated value Additional paid-in capital Capital stock expense (Note 2).Retained earnings (Note 2)Total shareholders'quity 3951709 958,462 350,503 677,839 X,986,804 X,944,272 362,376 875,129 316,636 (1,538)573,261 X,763,488 X,722,710$4,000$4,000 483I'755 433 755 74,998 74,998 Total capitalization

.3,931,076 3,486,198 Current Liabilities:

Accounts payable Notes payable to banks (Note 3)Taxes accrued (Note 6)Interest accrued.Customer deposits.Dividends declared.Other (Note 3)Total current liabilities X 14,748 160,639 31,134 X0,958 24,820 45,345 38'7,644 X00,620 92,500 64,552 26,515 8,643 20,729 9,312 322,871 Commitments and Contingencies (Note 3)Reserves and Deferred Credits: Customer advances for construction Other deferred credits.Accumulated deferred income taxes (Note 6)Pension reserves (Note 5).Insurance, casualty and other reserves (Note 2)Total reserves and deferred credits X9,095 6,506 29,678 X8,X43 XX,802 85,224$4,403,944 X8,926 4,957 31,807 19,818 5,184 80,692$3,889,761 The accompanying notes are an integral part of these balance sheets.'x5 Southern Callfornla Edteon Company StateInentS Of RetalneQ Eal'nlngS anCI Additional Paid-in Capital Year ended December 31, 1974 1973 Thousands of Dollars RETAINED EARNINGS: Balance at January 1 Add: Deduct: Balance at December 3X'Net income for the year Adjustments

-net (Note 2)Dividends declared on capital stock Original preferred-$1.65 per share for 1974 and$1.56 per share for 1973 Cumulative preferred Preference

.Common-$1.68 per share for 1974 and$1.56 per share for 1973$573,26X 218,298 (2,136)789,423 792 32,157 3,900 36,849 74,735 XXX,584$677,839$513,866 147,731 9,550 671,147 749 25,401 3,900 30,050 67,836 97,886$573,261 ADDITIONAL PAID-IN CAPITAL: Balance at January 1 Balance at December 31\Premium received on sale of common stock 33,867$350,503$316,636$316,636$316,636 x6 The accompanying notes are an integral part of these statements.

sontlrern callfornla Edison company Statements of Capital Stock December 31, 1974 Original Preferred-5%, prior, cumulative, participating, not redeemable, authorized 480,000 shares, par value$8x/3 per share Cumulative Preferred-authorized 12,000,000 shares, par value$25 per share (a)(b)4.08%Series.4.24%Series.4.32%Series.4.78%Series.5.80%Series.8.85%Series.$100 Cumulative Preferred-authorized 6,000,000 shares, par value$100 per share (a)(b)7.325%Series 7.58%Series.8.70%Series.8.96%Series.Shares Outstanding 480,000 ,1,000,000 1,200,000 1,653,429 1,296,769 2,200,000 2,000,000 750,000 750,000 500,000 500,000 Rcrlemption Price Per Share$25.50 25.80 28.75 25.80 27.00 27.20 115.00 108.00 111.00 111.00 December 31, 1974 1973 Thousands of Dollars 25,000 30,000 41,336 32,419 55,000 50,000 25,000 30,000 41,336 32,419 55,000 75,000'75,000 50,000 50,000 75,000 75,000 50,000 50,000$4,000$4,000 ference-authorized 10,000,000 shares, par value$25 per share (a)(c)5.20%Convertible Series Common-authorized 60,000,000 shares, par value$8x/3 per share, including additional stated capital (b)(c)Total capital stock-stated value (d)2,999,900 47,484,883 25.00 483,755 74,998 3951709$958,462 433,755 74,998 362,376$875,129 (a)All series of Cumulative Preferred and Preference Stock are redeemable at the option of the Company.The various series of Sxoo Cumulative Preferred Stock are subject to certain restrictions on redemption for refunding purposes.Thc Sxoo Cumulative Preferred Stock,7.5z5%

Series, has a cumulative sinking fund provision requiring the redemption of 5o,ooo shares annually at$xoo per share, plus accumulated unpaid dividends, commencing July 5x, xg85, and continuing until all shares are redeemed.(b)The transactions in thc capital stock accounts for xg74 were the sale and issuance of z,ooo,ooo shares of Cumulative Preferred Stock, 8.85%Series and 4,ooo,ooo shares of Common Stock.In x973 75o,ooo shares of Sxoo Cumulative Preferred Stock, 7,525%Series were issued.(c)At December 5x, x974 there were z,oz6,g6o shares of Common Stock reserved for conversion of Preference Stock, 5.zo%Convertible Series, at the adjusted conversion price of$57.oo per share.Also, at that date, there were x,so4,868 shares of Common Stock reserved for conversion of the 5i/s%Convertible Debentures, Due xgSo, at the adjusted rate of one share of Common Stock for each$4x.5o principal amount of such debentures.(d)The Company's Articles of Incorporation authorize the issue of z,ooo,ooo shares of$xoo Preference Stock, Sxoo par value, none of which was outstanding at December 5x, xg74 or xg75.The accompanying notes are an integral part of these statements.

yanrharn california Ed/ran company StatementS Of LOng-term Debt December 31, X974 1973 Thoidsauds of Dollars First and Refunding Mortgage Bonds (a): Series C, Series D, Series E, Series F, Series G, Series H, Series I, Series J, Series K, Series L, Series M, Series N, Series 0, Series P, Series Q, Series R, Series S, Series T, Series U, Series V, Series W, Series X, Series Y, Series Z, Series AA, Series BB, Series CC, Series DDP, Series EE, First Mortgage Bonds (Calectric)(a)Convertible Debentures (b)Promissory Notes (Note 7)Principal amounts outstanding Unamortized premium or discount (net)Total long-term debt (c)Due 1976 (2r/s%)Due 1976 (31/s%)Due 1978 (3/s%)Due 1979 (3%)Due 1981 (3/s%)Due 1982 (41/4%).~~~Due 1982 (4/4%):~~~Due 1982 (47/s%)Due 1983 (4/s%)Due 1985 (5%)Due 1985 (4/s%)Due 1986 (4x/2 o/o)Due 1987 (4/4%)Due 1987 (41/4%)Due 1988 (42/s%)Due 1989 (4/s%)Due 1990 (4xh%)Due 1991 (51/4%)Due 1991 (6/s%)Due 1992 (57/s%)Due 1993 (6/s%)Due 1994 (7x/8%)Due 1994 (81/s%)Due'1995 (77/s%)Due 1996 (8%)Due 1997 (72/s o/o)Due 1999 (Sx/4%)Due 1999 (7%)...~~Due 1981 (9%)~~~~~Due 1976-1991 (27/s%-51/s%)Due X980 (31/e%)Due 1979-1981 (Sxh%)$35,000 30,000 30,000 30,000 40,000 37,500 40,000 40,000 50,000 30,000 60,000 30,000 40,000 50,000 60,000 60,000 60,000 75,000 80,000 80,000 100,000 75,000 100,000 100,000 X00,000 X25,000 100,000 X5,030 X 00,000 X,772,530 87,340 74,902 X4,327 X,949,099 (4,827)$1,944,272 35,000 30,000 30,000 30,000 40,000 37,500 40,000 40,000 50,000 30,000 60,000 30,000 40,000 50,000 60,000 60,000 60,000 75,000 80,000 80,000 100,000 75,000 100,000 100,000 100,000~X 25,000~1,557,500 87,340 74,902 6,871 1,726,613 (3,903)$1,722,710 (a)All mortgage bonds are secured by utility plant, substantially all of which is subject to a lien under the trust indcntures.

Additional First and Refunding Mortgage Bonds may be issued subject to the provisions of the applicable trust indenture.

Each of the bond indentures requires special deposits with the trustees, which are based primarily upon the amount of bonds outstanding.

These deposit requirements of$52,57x,ooo in 197'ere satisgcd by property additions and replacements.

The First and Refunding Mortgage Bonds, Series DDP, arc subject to a mandatory sinking fund commencing on July 1, 1990.(b)At December 51, xg74 and 1975 the 5i/s%Convertible Debentures, Duc xgso, were convertible at the adjusted rate of one share of Common Stock for each$4x.5o and Sy5.5o, respectively of the principal amount of such debentures.

Any 5'/s%Convertible Debentures, Due xgso, which are converted may not be reissued.(c)The Company has scheduled an issue to be offered for sale during March'1975 of$'15o,ooo,ooo principal amount of First and Refunding Mortgage Bonds, Series FF, Due 2ooo.Thc nct proceeds will be used to reimburse the Company for monies expended for its construction program.The amount of long-term debt maturing for each of the following years will be: none in 1975'So,SSo,coo inxg76;none in 1977;$55,5oo,ooo in xg78;and$55,765,ooo in 1979.The accompanying notes are an integral part of these statements.

Southern California Edison Company Notes To Financial Statements Note I-Summary of Significant Accounting Policies The accounting records of the Company are maintained in accordance with the uniform system of accounts prescribed by the Federal Power Commission (rrc), and adopted by the California Public Utilities Commission (rvc).Additions to utility plant and replacements oE retirement units of property are capitalized at original cost less con-tributions, which cost includes labor, material, indirect charges for engineering, supervision, transportation, etcand an allowance for funds used during construction.

Maintenance is charged with the cost of repairs and minor renewals;plant accounts with the replacement of property units;and the depreciation reserve with the cost, less net salvage, of property units retired.Allowance Eor funds used during construction (Aoc)is the generally accepted utility accounting procedure designed to capitalize the cost of both debt and equity funds used to finance plant additions during construction periods and to restore net income to that which would have been expe-rienced without the construction program through a trans-fer of such costs from the income statement to the balance sheet as utility plant construction work in progress.Such'ds are recovered from ratepayers as a cost of service ough provisions Eor depreciation in future periods.The'oc rate authorized by the rvc was 8.o%Eor xg74 and 7.5%for x973.Depreciation of utility plant is computed on a straight-line remaining life basis for financial statement purposes and approximated z.g%and z.8%of average depreciable plant for the years'1974 and xg73 respectively.

Income tax expense has been reduced by the current tax reductions arising from investment tax credits and the use of liberal-ized methods and lives in computing depreciation for income tax purposes.Debt premium or discount and related expenses are being amortized to income over the lives of the issues to which they pertain.Customers are billed monthly, except for most residen-tial customers who are billed bimonthly.

Revenues are recorded when customers are billed.Investments in unconsolidated subsidiary companies, all of which are wholly owned, are stated on an equity basis.Note 2-Changes in Accounting Methods Retained earnings were increased in xg73 by$9 550,000, which consisted of the balance of undistributed earnings of unconsolidated subsidiary companies of$xo,667,ooo at he date the Company adopted the equity method of ac-nting, less$x,xx7,ooo transferred from retained earn-ngs to increase the required reserve for certain federally licensed hydroelectric projects.On December 31 x974 the unamortized balance of capital stock expense,$z,x36,ooo, was transferred to retained earnings since it is the Com-pany's intention to charge retained earnings directly for capital stock expenses incurred in future periods.In xg74 and prior years, capital stock expense was amortized to income over a five-year period from the dates incurred.In years prior to x974 contributions received by the Company in aid of construction were presented as an account on the liability side of the balance sheet.In xg74, these contributions were credited directly to utility plant;accordingly, the balance of such contributions at Decem-ber 3x, xg73 has been reclassified by crediting utility plant for$86,917 ooo and the accumulated reserve Eor depre-ciation Eor$x3,x7g,ooo (relating to retired utility plant)in order to conform the balance sheet presentations.

These accounting changes have not had a significant effect on net income and are in compliance with the orders and authorizations of the regulatory agencies exercising jurisdiction over the Compan'y's accounting.

Note 3-Commitments and Contingencies Construction program, Environmental The Company has significant purchase commitments in connection with its continuing construction program.The construction program is currently estimated at$483,ooo,ooo Eor xg75.Increasingly stringent air quality standards imposed in Nevada and New Mexico affecting coal-fired generating plants have required the Company to participate with the other co-owners oE the Mohave and Four Corners Projects in the installation of additional air pollution control equip-ment which is expected to involve added investment by the Company in excess of$xx7,4oo,ooo.

Fuel supply Long-term commitments, approximating

$8 billion, exist under fuel supply and transportation contracts, including short-term commitments under a fuel supply arrangement entered into in x974 with a trust, whereby the Company concurrently assigned its principal long-term fuel supply contract to the trust and agreed to purchase fuel oil deliv-ered to the trust by the original fuel supplier.Payments to the trust for fuel oil purchases consist of the trust's cost of oil determined on a first-in, first-out basis plus related administrative and carrying costs.For financial reporting purposes, purchases of the trust are assumed to have been made on behalf of the Company.Accordingly, the balance sheet at December 3'I'1974 includes$33 453 000 recorded in current assets-prepayments and other, and current liabilities

-other, reflecting the Company's commitments to purchase the trust's fuel oil inventory during'1975.Government licenses Major hydroelectric plants together with certain reservoirs are located in whole or in part on lands of the United States under Government licenses and permits which expire be-19 Southern California Edison Company Notes to Financial Statements (continued)

Note 3-Commitments and Contingencies (continued) tween x975 and 2009.Such licenses and permits contain numerous restrictions and obligations, including the right of the United States to acquire the projects, under certain conditions, upon payment of specified compensation.

interest rate for these borrowings (total interest divided by average daily borrowings) was xo.83%.There was no commercial paper outstanding during xg73.The variation between cash reported on the Company's~balance sheet and the minimum aggregate deposits re-corded by the banks is considered"float," which is princi-pally due to timing differences in recording deposits and withdrawals by the Company and the banks.Revenues Pursuant to rpc authorizations, the Company has increased.rates during xg73 and xg74 for certain of its resale custom-ers prior to the final determination of the rate proceedings pending before the ape.Additional revenues of approxi-mately$34,xoo,ooo collected thereunder are subject to refund with interest to the extent that any of the increases are subsequently determined by the@pc to be inappropriate.

The Company believes that, based on present facts, the amount of revenues, if any, which may be required to be refunded would not have a significant effect on net income.Leases and rentals The Company rents or leases computer equipment, office space and other incidental equipment and property.The total annual gross lease expense in xg74 is less than x%of operating revenues.The present value of the minimum commitments of non-capitalized financing leases is less than 5%of capitaliza-tion.'he majority of the Company's lease commitments is charged to other operation expense.The impact on net income, had these commitments been required to be capital-ized, would not have beert significant.

Compensating balances and short-term debt In order to continue lines of credit with various banks, which amounted to approximately Sx57 million at Decem-ber 3x x974 and Sx48 million at December 3x x973 the Company maintains deposits aggregating approximately Sx5 million, which are not legally restricted as to with-drawal.The unused lines of credit at December 3x x974, and xg73 were approximately Sx57 million and$55.5 mil-lion, respectively,$8 million of which may be utilized only through the issuance of commercial paper.The average interest rate on notes payable to banks out-standing at December 3x x973 was 9.74%.The maximum amount of short-term borrowing was Sxx5.3 million during xg74 and Sgz.5 million during xg73, with average daily borrowings outstanding of$48.x million and Sx3.4 million, respectively.

The approximate weighted average interest rate for these borrowings (total interest divided by average daily borrowings) was xo.x5%for'x974 and g.z8%for x973 The maximum amount of commercial paper outstanding during xg74 was$88.9 million with average daily borrow-ings of Sz8.5 million.The approximate weighted average Legal matters In connection with a charge filed with the Federal Equal Employment Opportunity Commission (ssoc)on January 3x, xg7z against the Company and two labor unions, the noc,onSeptember6,xg73andonMarch22 x974 deter-mined that there is reasonable cause to believe that, with respect to certain of the allegations, the Company and the unions have engaged in employment practices, with regard to women and certain minorities, which are in violation of Title Vli of the Civil Rights Act of xg64.The ssoc, the Company, the two unions and the representatives of the plaintiffs mentioned below are currently meeting in concili-ation in an attempt to resolve the alleged discriminatory practices.

While denying that it has engaged in any un-lawful practices, the Company will endeavor to resolve the issues raised by the determination in these proceedings.

On January x5, xg74, a class action suit was filed against the Company and the two labor unions in the U.S.District Court for the Central District of California.

This suit alleges that the defendants have engaged and are continuing to engage in unlawful employment practices, with respect to Blacks and Mexican-Americans, which are in violation of certain civil rights acts and encompasses a number of the issues raised by the Kzoc determination mentioned above.If the plaintiffs in such action should prevail against the Company, the court, in addition to awarding monetary damages and back pay to class members (plaintiffs'laim is in excess of$zo,ooo,ooo), could enjoin any employment practices it determines are unlawful and order that the Company undertake further affirmative action with respect to future hiring and promotional practices, as well as such other equitable relief as the court deems appropriate.

Settle-ments, consent decrees and decisions arising out of charges filed against other employers under such civil rights acts have resulted in the imposition of uneconomical hiring, promotional and other employment practices and require-ments, as well as substantial monetary awards or settle-ments.In the opinion of the Company's counsel, based upon the results of the Company's investigations to date, although there are no controlling judicial precedents con-cerning a number of issues raised in the case, the Company has numerous defenses to this action which should be sustained by the court, and the plaintiffs'ecovery of dam-ages, if any, should not be material in amount.

In addition to the above class action, class actions could be instituted by the Rzoc if the matter is not resolved in conciliation, and by others raising issues other than those luded in the class action now pending.Also, other pro-edings alleging discrimination could be instituted against the Company by other Federal agencies for the termina-tion of contracts for the processing of nuclear fuel, the sale or purchase of power or purchase of water, and of ease-ments, rights of way and permits over Federal lands on which numerous Company transmission and distribution facilities are located or are planned to be located in the future.Note 4-Research and Development Plant related research and development (Rs D)expenditures are accumulated in construction work in progress (cwn)until a determination is made whether or not such projects will result in construction of electric plant.If no construc-tion of electric plant ultimately results, the expenditures are charged to operating expense.The balance of Ra D expenditures included in cww at December 3T'1974 was$8 399,000.R6rD expenditures are expensed currently if they are of a general nature.Total RscD expenditures amounted to$Tg,402,000 in 1974 and$17,44T,ooo in T97>.The net amounts of RaD charged to cwtp amounted to$(542,000)in 1974 and$9 407 ooo in T97y.The amounts of RaD expensed were$Tg,944,000 in 1974 and$8,0>4,000 In T973.te 5-Retirement Plans The Company's current pension program is based on a trusteed non-contributory pension plan.Since January T, T966 the required Company contributions have been determined on the basis of a level premium funding method.Past service costs incurred prior to that date have been funded.Pension costs are funded or reserved for on an actuarial basis and amounted to$19,789,ooo for 1974 and$14 89$000 Eor T973.The costs of pension benefit improvements made in T97>under the plan were partially offset by an increase in the interest rate assumption used in determining pension costs.Provisions of the Employee Retirement Income Security Act of 1974 which will become effective in 1976, will re-quire the Company to amend its pension plan which amendments will have the effect of increasing the annual pension cost by approximately

$1,250,000 commencing in T976.Under the employee stock purchase plan adopted to supplement employees'ncome after retirement, employees may elect to contribute specified percentages of their compensation to a trustee for the purchase of Company Common Stock and the Company contributes to the plan an amount equivalent to one.-half of the aggregate con-ibutions of employees, less Eorfeitures.

The Company's tribution amounted to$2,272,ooo for 1974 and 2 080 000 Eor T973.Computed"expected" federal income tax.Reduction in tax: Excess of tax over book depreciation

.Allowance for funds used during construction Removal costs expenscd for tax purposes State taxes on income.Other timing diffcrenccs Investment tax credit Federal tax provision.State tax provision.

Total provision for taxes on income.Amortization of previously deferred: Taxes on income.Investment tax credits.Taxes on income (credit)allocated to other income Taxes on income included in operating expenses.Pretax income Effective tax rate (Taxes on income included in operating expenses~Pretax income)$168,468$92,398 (2'1,631)(7,158)(5,023)(3,6'14)(5,132)(1,951)111,359 24,241 135,600 (2,129)(781)2+47 (27,495)(4,891)(5,136)(3,272)(6,451)(8,460)36,693 10,980 47,613 (2,114)(781)3,496$13S;131$48,274$350,988$192,509 38 sogo 25 logo Note 6-Taxes on Income As required by the I vc, no provisions are made Eor income tax reductions (net)which result from reporting certain transactions for income tax purposes in a period different from that in which they are reported in the financial state-ments.The most significant of these transactions is the deduction of additional depreciation in income tax returns as a result of using liberalized methods and lives.Provi-sions to account for the deferral of income taxes due to accelerated amortization were permitted by the ptJc in certain prior years, and the accumulated amounts deferred are being amortized to income as such taxes become payable.In addition, investment tax credits deferred in certain prior years were amortized to income in equal annual amounts pursuant to rvc authorizations.

At December pT, 1974 the balance of these deferred investment tax credits had been completely amortized.

The estimated amount of investment tax credit generated in T974 and T97p has been applied as a reduction of income tax expense.The provision for state taxes on income is provided on taxable income of the current year;however, Eor Federal purposes such taxes are not deductible until the following year.The provision for T973 state taxes on income includes approximately

$y,ooo,ooo Eor under provisions of prior years.Supplementary information regarding taxes on income is set forth as follows: Year Ended December 31, 1974 1973 Thousands of Dollars 2i Southern California Edison Company Notes fo Financial Statements (continued)

Note 7-Long-term Debt Payable in Foreign Currency The Company has entered into a financing agreement, as amended, with certain English banks pursuant to which it expects to issue over a period ending not later than January 3'1 1977 promissory notes payable in pounds sterling in the maximum aggregate principal amount of Kxx,833,624 (but not to exceed$28,4oo,ooo).

At December 3T 1974 and xg73 promissory notes were outstanding in the amounts of K5 966 Soo (recorded at$x4,327,ooo) and 82,8T6,72o (recorded at$6,87x,ooo), respectively.

These notes were issued at various dates, are secured by a pledge of the Company's customer accounts receivable and are recorded at historical exchange rates.At the December 3x, xg74 exchange rate ($2.347 per 8), the Company has an unrecognized exchange gain of approximately

$322,ooo.Note 9-Fuel Transportation Charges Net income for the year ended December 3T, xg73 did not include transportation charges applicable to certain xg73 fuel oil deliveries by a major fuel oil supplier, since such charges were being negotiated with the supplier at the end~of that year and any related amounts paid were to be sub-jected to separate rate making procedures in xg74.These charges as finally agreed to and paid in xg74 amounted to$17 72'1,ooo exclusive of related sales tax of$g7g,ooo.In August T974 the Pvc authorized the Company to put into effect revised tariff schedules reflecting a special fuel cost adjustment designed to offset, during the succeeding twelve months, a major portion of such fuel oil transpor-tation charges net of certain credits totaling$8,o5g,ooo arising in T974 from certain fuel oil purchases.

Unamor-tized transportation costs at December 3'I'1974 of$6 452 ooo are included in fuel stock and will be amortized to income in equal amounts over the next seven months.Note 8-Earnings Per Share Primary earnings per share are based on the weighted average shares of Common and Original Preferred Stock outstanding in each year, giving effect to the participating provisions of the Original Preferred Stock, and after providing Eor preferred and preference dividend require-ments.Fully diluted earnings per share also give effect to the dilution which would result from the conversion of the Preference Stock, 5.2o%Convertible Series and the 31/s%Convertible Debentures.

Report of Independent Accountants To the Shareholders and the Board of Directors, Southern California Edison Company: We have examined the balance sheets and statements of capital stock and long-term debt of sovTHERN cAi.iroRNiA EDisoN coMPANY (a California corporation) as of December 3'1 T974 and xg73, and the related statements of income, retained earnings and additional paid-in capital, and changes in financial position for the years then ended.Our examinations were made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

In our opinion, the financial statements referred to above present fairly the financial position of the Company as of December 3x, xg74 and xg73, and the results of its operations and the changes in its financial position for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis during the years.ARTHUR ANDERSEN&CO Los Angeles, California January 3x, xg75 22 Southern California Edison Company Capital Stock-Price and Dividend Information 2974 1973 3rd Qtr.$22s/e 18'/4.39 Ist Qtr.5 zss/s 239s.39 3rd Qlr.S X93/s I6>h.42 2nd Qtr.8 Zps/4 X8'/2.42 Year 5 25s/s 18 1.56 4th Qlr.S 22s/4 18.39 1st Qtr.5 Zps/s I83/4.39 4th Qtr.Year 5 X8s/s 8 Zps/4 X6s/e X6>/2.42 1.65 2nd Qlr.$24 23.39 riginal Preferred:

High Price Low Price Dividends Paid Cumulative Preferred:

4.08%Series High Price Low Price Dividends Paid 4.24%Series High Price Low Price Dividends Paid 4.32%Series High Price Low Price Dividends Paid 4.78%Series High Price Low Price Dividends Paid 5.80%Series High Price Low Price Dividends Paid-.8.85%Series igh Price'ow Price Dividends Paid SIOO Cumulative Preferred:

7.32S%Series<>High Price Low Price Dividends Paid 7.58%Series High Price Low Price Dividends Paid 8.70%Series High Price Low Price Dividends Paid 8.96%Series High Price Low Price Dividends Paid Preference:

S.20%Convertible High Price Low Price Dividends Paid Common: igh Price ow Price Dividends Paid (a)In payment of pro rat (b)The initial dividend w and on October xy, egypt.I3'/2 I2%25>/2 II'/s Xp~h.25th u,'h Ips/4.25>/2 Iz'/2 u'/e.zst/~13th Xp>h 1.02 14'/e I3~/s.ZSt/2 I3'/4 X3'/s.25'/2 I43/e IZ~/s.25th I4'h 14.25>h I4%xz~/s 1.02 Ixs/4 Ipth.26t/2 13'/4 11'/s.ze/2 I3r/s 13 26>h xzf4 lps/s.Ze/2 I3r/s Xp>h 1.06 I4'r/s 144/4.26th xs%I3e/s 1.06 xsth I4'/4.26t/z 14'/s 13'/s.26>/2 I4s/4 X3a/s.26>h IS'/s xz~/s 1.08 14h I33/4.27 Is'/e 14.27 IS'/s x4'/4.27 I4'/4 10'/e 1.08 Xz'/4 10'/s.27 Izs/e Xp'/s.27 I4'/4 Izs/4 27 13'/s 111/4.27 15 Izr/e.27 17 15 X.X9~h I6'r/s Is'/s.29'/s X4>/2 xz'/4.29'r/s I6y/s 16.29'/s I3'/a u'/2.29r/s I33/e u.'/e.29r/s 17 IS.29'r/s 17 16.29~/s 16 11'/e I X91/16 14'/s 29'r/e 20'r/s I8~/e 1.45 I8'r/s X4t/s 1.45 Zpr/s 19'/4.36'/4 20'/s 19'/s.36'/4 Is~/s I4'/4.36'/4 I7'/2 ISs/s.36'/4 I8'r/s I7'/4 36t/4 20 18'/s.36~/4 20 X8'/4.36'/4 16 144/e.36'/4 zss/s 21'/s 1.112 25s/s 24t/s 24t/2 24 21s/s 213/s.559271(s)

.553125 1.567t"I.285i>1.852 1.83t/s 1.83 t/s I.83 t/e 1.83t/s 7.325 105t/e 96 7.58 IOX3/4 97'r/s 1.89t/2 1043/4 1001/4 I.89>/2 103'/4 96 1.89>/2 97'/s 71 7.58 105t/e 103 I.89>/2 97t/s 92 1.89'/2 84 71 1.89t/2 88 84t/2 1.89t/2 80 74 1,89t/2 II4~/4 104t/4 8.70 XX3'/s 110 2.17t/2 xxzt/a 107>/a 2.17t/2 II4'/4 Ill 2.17'/2 97>/2 8292 Z.X7t/2 93'/4 83s/s 2 I71/113 104t/4 2.17'/~107 Szt/2 8.70 101 943/4 2.17th 107 1023/4 2.17~/z II6'/2 108 8.96 11392 108t/4 2.24 IX 2't/z 108 2.24 II6V2 113 2.24 IISV2 112s/s 2.24 109'/2 853/4 8.96 96~/2 87 2.24 109~/2 105 2.24 98 853/4 2.24 105 98 2.24 Series 22'/4 X8~/2.32t/z zzi/4 I43/4 1.30 18'/s I43/4.32'/2 16 16'/4 123/4 123/s.32t/2 1.30 18'/s 16'/4.32'/2 I9'/4 18.32'/2 I4~/2 Ize/e 321/2 I6'/4 xs'/s 32'/2 16 14'/e.32'/2 28>h X7t/4 1.56 24'/s X7t/4 39 24r/e 20'/e 39 I9r/s I8t/4.39 a dividend No.x as paid at the pe There are no price I9</2 X8>/e 18'/e I9~/s 28~/2 25s/e 17>/e 14s/s IS>/4 14s/s 24 23~/s.42.42.42 I 65.39.39 at$.oosx46 per share and dividend No.a at$.psych per sharc.r share rates of$x.F67 and$o.as'espectively for the gyes,ooo shares issued on August x4, egypt, s as this issue was a private placement and shares are not listed on any securities exchange.

Southern California Edison Company Summary of Operations and Comparative Statistics of Progress xg64-x974 Summary of Operations in thousands Operating Revenues.Operating Expenses Fuel (a)Taxes on Income (a).Allowance for Funds Used During Construction

.Interest Charges Net Income.Earnings Available for Common and Original Preferred Stock Weighted Average Shares of Common and Original Preferred Stock Outstanding

.Per Share Data: Primary Earnings Dividends Declared on Common Stock.2974$1,483,432 X,I72,768 505,209 X35,137 X6,163 XI2,959 218,298$X 82,610 44,580$4.10 1.68 X9$1,079,348 845,308 321,080 48,274, 10,190 97,728'47,731,$118,889,, 43,965$2.70 Balance Sheet Data in thousands Gross Utility Plant Accumulated Provision for Depreciation Percent of Gross Utility Plant.Long-Term Debt (b): Bonds.Debentures

.Other.Preferred&Preference Stock.Common Stock, Including Additional State Additional Paid-in Capital.Retained Earnings.Capital Structure (percent):

Long-Term Debt: Bonds.Debentures Other Preferred&Preference Stock Common Equity Book Value Per Common Share d Capital$4,766,X 75 X,OSI,024 22.1 X,854,544 75,401 X4,327 562 753 395,709 350,503$677,839 47.2 X.9 0,4 14.3 36.2$29.77$4,458,631, 958,210 21.5 1,640,349 75,490 6,871 51~36vM6 316,636$S73,261 47.0 2.2 0.2 14.7 35.9$28.54 Operating and Sales Data Operating Capacity (kw)(c)Kilowatt-Hours Transmitted (000)Percent Output: Hydro-Company Plants.Hydro-Hoover Dam Thermal Purchased Power&Other Sources Kilowatt-Hour Sales (000).Number of Customers Average Annual Kwh Sales Per Residential Customer Number of Employees Main System Peak (kw).13,494,849 55,105,988 XO.O X.5 75.1 X3.4 51,089,981 2,69 X,691 5,541 X3,468 9,997,000 13,447,095 57,730,121 9.0 1.3 84.7 5.0 54,092,934 2,626,492 5,885 13,927 10,25 24 (a)Included in Operating Expenses.(b)The years subsequent to T972 include unamortized premium or discount related to each category of long-term debt.(c)Includes g96,554 kw available Erom others in 2974 and 904,650 kw for 2973.

.$931,216 711,564 220,630 46,382 7,152 91,752 137,350$112,171 43,965 197X$802,434 612,732 164,891 38,542 15,859 82,308 X 27,297 105,752 43,041 X970$720,661 535,846 126,592 38,635 X7,007 77,633 127,495$110,497 40,963 1969$642,124 482,663 111,357 36,480 X7,471 68,246 107,869$95,152 40,501 1968 588,829 440,646 111,825 37,592 10,007 58,760 99,894$89,419 39,348 1967$552,240 411,059 98,974 45,785 6,762 50,498 99,329$90,805 37,963 1966$515,859 388,450 98,586 45,286 5,679 43,734 90,791$85,163 37,963 1965$472,498 355,780 83,399 46,290 3,257 37,407 84,374$78,741 37,963 1964$449,718 335,903 82,912 46,354 2,357 35,073 82,322$76,7OI 36,799$2.55 1.56$2 46$2.70 I 511/2 I 50$2.3S 1.40$2.28 1.40$2.39$2.24 1.36'/4 1.2S$2.07$2.08 1.221/2 1.12/2$4,233,067 851,910 20.1$3,998,045 779,409 19.5$3,737,837 707,928 18.9$3,461,836 649,702 IS.S$3,188,708 592,366 18.6$2,880,652 559,361 19.4$2,591,120 508,407 19.6$2,369,473 468,919 19.8$2,171,199 426,515 19.6 1 ,705,139 75,579 7,991 7,753 62,376 316,636$513,866 I,S84,840 74,902 7,991 362,753 362,376 316,636$470,754 1,484,840 74,987 438 362,753 337,360 243,437 430,477 1,384,840 74,987 262,753 337,360 243,437$381,040 X,210,000 74,987 262,755 324,857 202,599$342,712 1,110,000 74,987 187,755 312,357 162,774$308,541 1,030,000 74,987 176,967 312,357 162,774$269,407 875,000 75,000 132,755 312,355 162,764$231,700 852,884 132,755 213,355 162,764$199,442 50.0 2.2 0.2 12.8 34.8$27.18 12,615,665 S5,686,776 6.4 1.2 86.6 5.8 52,309,906 2,566,341 5,777 13,269 5,000'9.9 2.3 0.3 11.4 36.1$26.60 12,458,165 52,672,084 8.4 1.1 , 80.0 10.5 48,856,493 2,497,342 5,642 12,831 9,350,000 50.6 2.6 12.4 34.4$24.72 10,904,845 49,674,757 9.2 I.I.82.5 7.2 45,881,076 2,438,584 5,240 12,299 8,274,000 51.6 2.8 9.8 35.8$23.S3 10,238,627 46,344,845 12.8 1.0 78.9 7.3 42,601,606 2,383,251 5,031 11,911 7,804,000 50.1 3.1 10.9 35.9$22.09 9,277,515 42,905,380 8.2 1.1 88.3 2.4 39,365,088, 2,330,751 4,609 11,090 7,425,000 51.5 3.5 8.7 36.3$20.72 8,594,915 39,847,438 15.2 1.2 84.0 (o.4)36,418,891 2,277,976 4,425 10,662 7,001,000 50.9 3.7 8.7 36.7$19.69 7,767,915 36,739,031 10.9 11 88.4 (o.4)33,686,652 2,225,225 4,094 10,370 6,173,000 48.9 4.2 7.4 39.5$18.72 6,806,840 33,793,186 16.7 1.2 80.8 1.3 ,30,128,140 2,171,881.

3,820 XO,X21 5,863,000 51.4 8.0 40.6$17.60 6,451,910 31,218,901 11.3 1.5 86.4 0.8.27,960,830 2,087,982 3,566 9,913 5,455,000 Southern California Edison Company Management's Discussion and A.nalysis of Summary of Operations General The Company's rates subject to California Public Utilities Commission (rvc)jurisdiction (accounting for approxi-mately go%of sales during xg74)are determined by the rvc on the basis of projected revenues and expenses (in-cluding projected fuel costs)for an average year, i.e., a year in which the amounts of power available to the Company from hydroelectric facilities of the Company and others are those which would be available under historical average weather conditions and the amounts of natural gas avail-able to the Company are those which its suppliers advise it should be available under historical average weather conditions.

In May 2972, the rvc established an expedited proce-dure, consistent with the average year method followed in establishing the Company's base rates, for making upward and downward adjustments, no more frequently than every three months, in billings Eor service to reflect changes in fossil fuel costs.This procedure is set forth in a fuel ad-justment clause designed to adjust billings in such a man-ner as to produce changes in revenues which track fossil fuel expenses projected on an average year basis.Changes in the fuel cost adjustment billing factor must be author-ized by the rvc.In the case of the Company's last four fil-ings, the r vc ordered into effect fuel cost adjustment billing factors less than those proposed by the Company.To the extent that the amount of hydroelectric power available is more or less than that available under average-year conditions and the amount of natural gas available is more or less than that projected, the Company may incur fuel costs in a greater or lesser amount than projected with a related unfavorable or favorable impact on net income.Substantially all the increase in net income from xg73 to'1974 was due to unusually greater than average-year availability of low-cost hydroelectric power from the Company's own facilities and to an even greater extent from the Pacific Northwest, a greater amount of natural gas available than projected and a less than projected use of higher-cost fuel oil, in conjunction with the operation of the Company's base rates and the fuel adjustment clause.This combination of favorable circumstances occurred pri-marily in the first three quarters of 2974 and the Company believes that such favorable circumstances are not likely to recur in 2973.In addition, because the fuel adjustment clause provides Eor a projection of fuel costs during a xz-month period based on the average cost of fuel in inventory at the beginning of the period and the cost of fuel neces-sary for the remainder of the period based on prices in effect at the commencement period and because fuel expense is accounted for by the Company on a first-in, first-out basis, during a period when fuel prices are falling the fuel adjustment clause may be implemented to produce de-creases in revenues greater than decreases in fuel costs.In connection with the Company's current application for an increased fuel cost adjustment billing factor which was requested to become effective on February x, xg73, the rvc asked the Company to provide specified informa-tion with respect to the historical and projected operation of the fuel adjustment clause and, Eor the first time since such clause was authorized, set the Company's request for a change in the fuel cost adjustment billing factor for pub-lic hearing.Hearings commenced on January 22, xg73, and are scheduled to continue into March.The Staff of the rvc, in the hearings, has urged the commission to reduce the Company's existing fuel cost adjustment billing factor upon bases which the Company believes to be improper and is contesting.

Intervening participants in the proceed-ings have urged the r vc to reconsider both the design and operation of the fuel adjustment clause.The Company is unable to predict the outcome of the proceedings and when or if any upward or downward changes in the fuel cost adjustment billing factor may be made effective.

Operating Revenues The increases in total operating revenues for xg72, zg73 and xg74 reflect principally general rate increases and upward fuel adjustments in the Company's rates to reflect increased fuel costs.Revenues for xg73 and xg74 of$4,4oo,ooo and$29,7oo,ooo, respectively, are attributable to increased rates Eor certain resale customers and are subject to refund with interest if any of the increases are subsequently determined by the Federal Power Commis-sion (Frc)to be inappropriate.(See Note 3 of"Notes to Financial Statements.")

Fuel shortages developing in late T973 prompted state and federal governmental agencies to implement voluntary and mandatory conservation restraints on energy usage.As a result of these restraints and customer reaction to sharply higher rates per kilowatt-hour, which for%974 averaged 43.3%higher than for%973 the Company has experienced a decrease in the level of energy consumption by its customers which amounted to a 3.6%reduction of total kilowatt-hour sales for 2974 compared with 2973.Fuel Fuel costs increased during 2972'1973 and xg74 primarily because of decreased availability of natural gas and in-creasing prices of environmentally acceptable low-sulphur fuel oil as an alternative fuel.26 The amount of hydroelectric and purchased and inter-changed power available in 1975 is expected to be less than in xg74.In addition, the Company has been advised that significant quantities of gas will not be available to it in 6 and subsequent years.As a result, the Company ects to be relying more heavily on higher cost fuel oil.The Company expects future increases in fuel costs, including costs resulting from a tariff imposed by the Federal Government on oil imported after January 31, 1975.(For a discussion of fuel adjustment clause author-ized by the pvc, see the discussion above under"General.")

Taxes and ADC The increases in taxes on income for the years 1.972 and'1974 over the respective prior years resulted from increases in net income before taxes with no commensurate increases in tax reductions.(See Note 6 of"Notes to Financial Statements.")

The allowance for funds used during construction (ADc)decreased in 1972 due to a slowdown in construction activity and related costs.The increase in ADc during 1.973 reflected the impact of an increase in construction activi-ties, and the increase of ADc in 1974 reflected, in part, an increase in the ADc rate from 7.5%to 8.o%and, in part, an increase in construction activity and related costs.(See Note x of"Notes to Financial Statements.")

Net Income The significant increase in net income for'1974 as com-pared with 1973 is unusual and substantially all of such increase is attributable to the availability to the Company of substantially above-average amounts of low-cost hy-droelectric energy purchased from and interchanged with others and, to a lesser extent, generated on its own facili-ties, the greater than anticipated availability of low-cost natural gas and a less than projected use of higher-cost fuel oil, in conjunction with the operation of the Company's base rates and the fuel adjustment clause as discussed above.The Company believes that the availability of low-cost hydroelectric energy and natural gas cannot be ex-pected to continue at 1.974 levels and, as a result, net income in 197g is expected to be substantially less than in'1974.Operahng Revenues and Kilowatt-Hour Sales Class of Service Operating Revenues (000)Kilowatt-Hour Sales (000)Residential Agricultural

~Commercial

.Industrial

.Public Authorities

.Interdepartmental

.Resale.Other.Total 1974$506,154 33,788 364,994 354,334 X41,376 28 71,218 XX,480 1973$394,827 22 132 276,261 229,563 104,494 24 42,879 9,168$1,483,432$1,079,348 o/increase 28.2 52.7 32.1 54.4 35.3 13.8 66.2 25.2 37.4 1974 X3,059,518 1,049,818 XX,514,671 X5,553,144 51575~587 927 4,336,256 1973 X3,532,182 974,477 12,523,975 16,423,255 6,098,515 813 4,539,717 o/increase (3.5)7.7 (8.1)(5.3)(8.6)14.0 (4.5)51,089,981 54,092,934 (5.6)27 Southern California Edison Company Board of Directors Jack K.Hor ton Norman Barker, Jr.Edward W.Carter Warren Christopher William B.Coberly, Jr Terrell C.Drinkwater William R.Gould Stanton G.Hale Daniel J.Haughton Frederick G.Larkin, Jr T.M.McDaniel, Jr.John V.Newman Gerald H.Phipps Henry T.Segerstrom H.Russell Smith Richard R.Von Hagen Chairman of the Board Chninnan of the Board, United California Bank, Los Angeles Chal rtttan of the BoardC, arter Hatotey Hale Stores, lno.,Los Angeles~Partner, Laro Firm of Messrs.O'Melveny&Myers, Los Angeles President, California Cotton Oil Corporation, Los Angeles Retired Airline Executive, Los Angeles Executive Vice President Clrninnan of the Board, Pncific Mutual Life lnsurnnce Company, Los Angeles Chairman of fhe Board, Lockheed Aircrnft Corporation, Burbank Chairrnnn of the Bonrrl, Security Pacific National Bank, Los Angeles President Chairman of the Board, Sunkist Groroers, Inc.(Citrrrs Marketing Cooperntive), Van Nuys Presirlent, Gerald H.Phipps, Inc.(General Contractors), Denver General Partner, C.7.Segerstrom

&Sons (Real Estate Development and Farming), Costa Mesa President, Avery Prorlucts Corporation (Manufacturer of Self-Adhesive Products), San Marino President, Lloyd Corporation, Ltd.(Real Estate Development anrl Oil Production), Beverly Hills Executive Officers Jack K.Horton T.M.McDaniel, Jr.William R.Gould Howard P.Allen Robert N.Coe Sherman F.Buese Smith B.Davis J.H.Drake David J.Fogarty Joe T.Head, Jr.Jack B.Moore Edward A.Myers, Jr.William H.Seaman G.E.Wilcox Rollin E.Woodbury A, L.Maxwell H.Fred Christie C.D.Lester Chairman of the Board and Chief Executive Officer President Executive Vice President Executive Vice President Senior Vice President (Poroer Supply and System Development)

Vice President (Administration and Personnel)

Vice President (Finance)Vice President (Engineering nnd Construction)

Vice President (Poroer Supply)Vice President (System Development)

Vice President (Arlvanced Engineering)

Vice President (Corporate Communications)

Vice President (Fuel Supply)Vice President (Customer Service)Vice President and General Counsel Comptroller Treasurer Secretary 1975 Annual eholders'ing Stock Transfer Agents~The annual meeting of shareholders of Southern California Edison Company will be held at Io a.m., Thursday., April x7, x975, at the Company's Corporate Headquarters, mr 44 Walnut Grove AvenueRosemead, California 9~7Zo.Telephone (exes)57m-xzxz.Southern California Edison Company, Rosemead, California-Bankers Trust Company, New York, New York Registrars of Stock Security Pacific National Bank, I.os Angeles, California Manufacturers Hanover Trust Company, New York~New York Stock Exchange Listings Common Stork: New York Stock Exchange, Inc.Pacific Stock Exchange, Inc.Preferred and Preference Stocks: Ameriran Stork Exchange Inc.Pacific Stork Exchange, Inc.Ticker Symbol Statistical

~Supplement SCE (Common Stock)A comprehensive financial and statistical supplement to this report is available in limited tiuantity.

If you wish a copy, please write to the Tr'easurer, Southern California Edison Company, P.O.Box 8oo, Rosemead'California 91770.'4 I This Annual Report nnd the s'tntements and stntistics contained herein have been nssenibled for general infor>native purposes and are nof intended to induce, or for.use in connection unfh, nny sale or purchase of securities.

Under no circumstances is this report or nny part of ifs contents to be considered a prospectus, or ns an offer to sell, or the solicitation of an offer fo buy, any securities.

lI Southern California Edison Company, 2244 Walnut Grove Avenue, Rosemead, California gxp7o