Edison International's subsidiary, Southern California Edison Co. (SCE), recently agreed to a revised settlement agreement regarding the San Onofre Nuclear Generating Station (SONGS). Under the terms of the proposed revised settlement, pending the California Public Utilities Commission (CPUC) approval, Edison will record an after-tax charge of $448 million. We are revising our assessment of Edison's management and governance to reflect our view that the company has effectively managed through all outstanding SONGS issues. We are revising our comparable ratings analysis modifier for Edison to negative from neutral to reflect our assessment of California's current application of the legal doctrine of inverse condemnation, which potentially holds Edison and other California regulated utilities liable for wildfire damages related to their equipment, regardless
