On December 16, 1997, the CPUC issued Decision 97-12-088 establishing a new set of rules governing how transactions may be conducted between California's gas and electric utilities and their affiliates. This decision was the culmination of the CPUC's Affiliate Transaction Rulemaking and Investigation.

The Affiliate Transactions Rules were adopted primarily to prevent California's regulated utilities from using their resources to provide an unfair competitive advantage to their unregulated affiliates, with principal emphasis on the then-anticipated competitive market for the electric commodity and related products and services.

Essentially, they cover dealings between a utility and its unregulated affiliates with respect to: transactions, sharing of information and assets (tangible and intangible), employee moves and temporary use of utility employees by affiliates.

This report is an audit of those dealings between SCE and its unregulated affiliate companies.

• The 2006 Affiliate Transactions Audit Report
• SCE's Response to the 2006 Affiliate Transactions Audit Recommendations