State Regulators Approve Incentive to Reduce Diesel Engine Pollution

June 16, 2005

June 16, 2005

Innovative plan offers 12.5% rate discount to applicable SCE customers

SAN JOAQUIN VALLEY, Calif., June 16, 2005 –The California Public Utilities Commission today established an incentive program proposed by Southern California Edison (SCE) and others to encourage agricultural customers to switch from diesel-powered irrigation pumps, a significant source of air pollution, to electric pumps. 

The incentive program establishes a new electric rate schedule for program participants beginning with a rate approximately 12.5% below the otherwise applicable rate schedule.  The rate then increases by 1.5% per year for the 10-year term of the program.  Existing customers will benefit because the new pump accounts will contribute toward recovering the fixed costs of serving all SCE customers.

"SCE is pleased to gain approval of this proposed new rate schedule because it will improve air quality while providing overall economic benefits to our customers," said Bill Bryan, SCE vice president of the business customer division.

This collaborative partnership involving SCE, Pacific Gas and Electric, and the agricultural community will facilitate the early retirement of stationary diesel engines, a significant source of the air pollution in California.   

Other key features of the new program include:  the assignment of air pollution emission reductions associated with the retirement of existing permitted diesel engines to the California Air Resources Board or local air pollution control district, enhanced line-extension allowances where needed to help customers defray some of the up-front conversion costs, and pump efficiency tests to ensure the new electric pump is operating efficiently.

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An Edison International (NYSE:EIX) company, Southern California Edison is one of the nation’s largest electric utilities, serving a population of more than 13 million via 4.6 million customer accounts in a 50,000-square-mile service area within central, coastal and Southern California.