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EDISON DISSATISFIED WITH CPUC DECISION ON COST OF CAPITAL

 ROSEMEAD, Calif., Nov. 24 ~PRNewswire~ -- Southern California Edison today expressed dissatisfaction with the California Public Utilities Commission (CPUC) decision in Edison's annual cost of capital proceeding.
 The CPUC decision reduces Edison's rate of return on common equity (ROCE) from its current authorized level of 12.65 percent to 11.80 percent. The decision also maintains Edison's ratemaking capital structure at the current levels of 46 percent equity, 6 percent preferred and 48 percent debt.
 Al Fohrer, Edison's vice president and chief financial officer, said that today's CPUC decision regarding the cost of capital for Edison is "deeply disappointing."
 Today's decision puts Edison's double-A credit rating at risk, according to the CFO. "We had worked hard to persuade California regulators that the long-term economic health of the state and the interests of our customers both were enhanced by Edison's double-A rating," Fohrer said. "We've been a double-A-rated company from the very beginning -- about 40 years."
 Edison had sought to increase its equity ratio from 46 percent to 48 percent to counter increased financial risks, including the risks associated with long-term purchased power contracts.
 The ruling will result in a decline in annual SCEcorp (NYSE: SCE) revenue by $106 million, and per share earnings would be reduced by 19.1 cents. SCEcorp is the parent company of Edison.
 -0- 11~24~92
 ~CONTACT: Paul Klein of Southern California Edison, 818-302-2255~
 (SCE)


CO: Southern California Edison; SCEcorp ST: California IN: UTI SU:

JL-LS -- LA017 -- 0878 11~24~92 08:15 EST
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Publication:PR Newswire
Date:Nov 24, 1992
Words:248
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