San Francisco (Platts)--17Aug2007

Southern California Edison Friday said it has asked an Arizona Court to
overturn the Arizona Corporation Commission's May order rejecting its proposal
to build a 500-kV transmission line between Arizona and California.

     "Investment in a strong western electric grid serves the citizens of both
states and is very important for the economic health of the southwest," the
utility in a statement.

     The company said it believes the line would "meet the need for
electricity in California, Arizona and the Southwest, while being paid for by
California customers."

     SoCal Ed filed the appeal with the Maricopa County Court in Arizona  on
August 10, according to SoCal Ed spokesman Steve Conroy.

     A uninimous ACC in late May rejected SoCal Ed's proposal to build the 230
mile line, saying the project would raise electricity costs for Arizona
ratepayers and provide no benefits to the state. 

     ACC staff estimated that the proposed line would cost Arizona ratepayers
as much as $242 million while providing California utility customers with
access to cheaper power generated in Arizona. Staff estimated that the line
would increase average costs at the Palo Verde hub by about 5%, or $2.90/MWh,
a move that would increase costs for Arizona utilities.

     "It comes down to this: California wants to drop a 230-mile extension
cord into Arizona at a time when Arizona is the fastest growing state in the
nation," ACC Commissioner Kris Mayes said at the time. "California's plan to
build this line would come at the expense of Arizona ratepayers, Arizona air
quality, Arizona land, Arizona water and Arizona wildlife."

		--Lisa Weinzimer, lisa_weinzimer@platts.com