Consolidated financial metrics continue to benefit from the debt-free status of the parent company, Edison International, which retired all of its third-party debt with cash on hand in late 2004. A January 2006 regulatory commission decision realigned energy revenues and expenses for the regulated utility by providing about $1 billion of revenues and represents the commission's reaffirmation of its commitment to the preservation of sound credit quality. State legislation directs the California Public Utilities Commission (CPUC) to support the regulated utility's creditworthiness. CPUC administered balancing accounts compensate the utility for increased costs associated with fuel volatility and the need to procure additional energy to meet demand and replace expiring contracts. In its recently completed rate case, the regulated utility was
