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UNITED STATES OF AMERICA <br />BEFORE THE <br />FEDERAL ENERGY REGULATORY COMMISSION <br />Southern California Edison Company} Docket No. ER87-365-000 <br />I <br />SETTLEMENT AGREEMENT BETWEEN <br />SOUTHERN CALIFORNIA EDISON COMPANY, <br />THE CITIES OF ANAHEIM, AZUSA, BANNING, COLTON, <br />RIVERSIDE, AND VERNON, CALIFORNIA, <br />ARIZONA PUBLIC SERVICE COMPANY, <br />AND SOUTHERN CALIFORNIA WATER COMPANY <br />Southern California Edison Company ("Edison" or "Company'), <br />the Cities of Anaheim, Azusa, Banning, Colton, and Riverside, <br />California <br />("Cities"), ) the City of Vernon, California ("Vernon"), <br />Arizona Public Service Company ("APS"), and Southern California <br />Water Company ("SCWC") collectively referred to as the "Parties," <br />hereby agree, subject to acceptance and approval by the Federal <br />Energy Regulatory Commission ("FERC" or "Commission"), to a <br />settlement agreement ("Agreement") of the issues in this docket. <br />The Parties agree that the issues in this proceeding shall be <br />resolved in the following manner: <br />i. For the purpose of determining 1987 rates included in <br />Attachment A, the annual resale revenue requirement for 1987 <br />shall be reduced by $7,870,000 from -revenues generated by <br />