Supportive regulatory mechanisms established by the California Public Utilities Commission (CPUC) allow utility Southern California Edison (SCE) timely and certain recovery of costs. Federal Energy Regulatory Commission (FERC) rulings continue to sustain return on the utility's transmission investments. Low gas prices have helped keep retail electric rates flat for customers over the past two years, allowing the utility to carry out its capital program and contract for renewables generation without pressuring rates. Decoupling has shielded SCE from the direct effects of a deep state recession. A prolonged weak state economy could politically complicate SCE's efforts to pass through retail rate increases that will be needed in coming years. Management has executed well on recent challenges, completing a global tax settlement
