<PAGE>
================================================================================
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
_________________
FORM 10-Q
THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL
INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH
THE REDUCED DISCLOSURE FORMAT.
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
For the quarterly period ended March 31, 1998.
OR
[_] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from _____________ to _____________
Commission file number 333-30785
---------
California Infrastructure and Economic
Development Bank Special Purpose Trust SCE-1
--------------------------------------------
(Issuer of the Certificates)
SCE Funding LLC
---------------
(Exact Name of Registrant as Specified in Its Charter)
Delaware 95-4640661
-------- ----------
(State or Other Jurisdiction (I.R.S. Employer
of Incorporation or Organization) Identification No.)
2244 Walnut Grove Avenue,
Room 180, Rosemead, California 91770
------------------------------ -----
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, Including Area Code: (626) 302-1850
--------------
Indicate by check [x] whether the registrant: (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for at least the past 90 days. YES [x] NO
--- ---
================================================================================
<PAGE>
PART I
Item 1. Financial Statements.
SCE FUNDING LLC
BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
March 31, December 31,
ASSETS 1998 1997
------ ------------ ------------
(Unaudited)
<S> <C> <C>
Current Assets:
Cash & equivalents $ 1,935 $ 6,616
Current portion of Note Receivable 304,477 246,300
Interest receivable 2,559 8,163
-----------------------------
Total Current Assets $ 308,971 $ 261,079
-----------------------------
Other Assets and Deferred Charges:
Restricted funds 11,651 12,254
Note receivable - net of discount 2,128,372 2,197,512
Unamortized bond issuance costs 17,250 15,974
-----------------------------
Total Other Assets & Deferred Charges $2,157,273 $2,225,740
-----------------------------
Total Assets $2,466,244 $2,486,819
=============================
LIABILITIES AND MEMBER'S EQUITY
-------------------------------
Current Liabilities:
Interest payable $ 2,559 $ 8,142
Current portion of long-term debt 304,477 246,300
Misc accrued expenses 104 3,382
-----------------------------
Total Current Liabilities $ 307,140 $ 257,824
-----------------------------
Long term debt - net of discount 2,145,500 2,216,014
Member's equity $ 13,604 $ 12,981
-----------------------------
Total Liabilities and Member's Equity $2,466,244 $2,486,819
=============================
</TABLE>
1
The accompanying Notes are an integral part of this Financial Statement
<PAGE>
SCE FUNDING LLC
STATEMENT OF OPERATIONS AND CHANGES IN MEMBER'S EQUITY
FROM JANUARY 1, 1998 THROUGH MARCH 31, 1998
(UNAUDITED)
(in thousands)
<TABLE>
<S> <C>
OPERATING REVENUES:
Interest Income $39,856
-------
Total Operating Revenue 39,856
-------
OPERATING EXPENSES:
Interest Expense 39,444
Other Expenses 1,353
-------
Total Operating Expenses 40,797
-------
Net Income (Loss) $ (941)
=======
Member's Equity, beginning of period 12,981
Member Contributions - net 1,564
-------
Member's Equity, end of period $13,604
=======
</TABLE>
2
The accompanying Notes are an integral part of this Financial Statement
<PAGE>
SCE FUNDING LLC
STATEMENT OF CASH FLOWS
FROM JANUARY 1, 1998 TO MARCH 31, 1998
(UNAUDITED)
(in thousands)
<TABLE>
<S> <C>
Cash Flows from Operating Activities:
Net Income (Loss) $ (941)
Adjustment for non cash items:
Amortizations (20)
Changes in Working Capital:
Receivables 17,049
Interest payable (5,583)
Accounts payable and other current liabilities (3,280)
--------
Net Cash Provided by Operating Activities 7,225
========
Cash Flows from Financing Activities:
Payment of additional bond issuance costs (1,720)
Payment of principal on rate reduction notes (12,354)
--------
Net Cash Used by Financing Activities (14,074)
========
Cash Flows from Investing Activities:
Equity contributions from Southern California Edison 1,564
Other - Net 604
--------
Net Cash Provided by Investing Activities 2,168
========
Net decrease in cash and equivalents (4,681)
Cash and equivalents, beginning of period 6,616
--------
Cash and equivalents, end of period $ 1,935
========
</TABLE>
3
The accompanying Notes are an integral part of this Financial Statement
<PAGE>
SCE FUNDING LLC
NOTES TO FINANCIAL STATEMENTS
(UNAUDITED)
In the opinion of management, all adjustments have been made that are
necessary to present a fair statement of the financial position and results of
operations for the periods covered by this report.
The significant accounting policies of SCE Funding LLC (the "Note
Issuer") were described in Note 2 of "Notes to Financial Statements" included in
its Annual Report on Form 10-K for the fiscal year ended December 31, 1997,
filed with the Securities and Exchange Commission. The Note Issuer follows the
same accounting policies for interim reporting purposes. Results of operations
for the interim period are not necessarily indicative of results to be expected
for a full year. This quarterly report should be read in conjunction with the
Note Issuer's Annual Report on Form 10-K.
Certain prior-period amounts were reclassified to conform to the
March 31, 1998 financial statement presentation.
Note 1. Basis of Presentation.
The financial statements include the accounts of the Note Issuer, a
Delaware special purpose limited liability company, whose sole member is
Southern California Edison Company ("Edison"), a provider of electric services.
Edison is a wholly owned subsidiary of Edison International. The Note Issuer
was formed on June 27, 1997, in order to effect the purchase from Edison of
Transition Property (as defined below) and to fund such purchase from the
issuance of the SCE Funding LLC Notes, Series 1997-1, Class A-1 through Class A-
7 (the "Notes") to the California Infrastructure and Economic Development Bank
Special Purpose Trust SCE-1 (the "Trust") which issued certificates (the
"Certificates") with terms and conditions similar to the Notes. The proceeds
from the sale of the Transition Property resulted in a reduction in revenue
requirements sufficient to enable Edison to provide a 10% electric rate
reduction to Edison's residential and small commercial customers in connection
with electric industry restructuring mandated by California Assembly Bill 1890,
as amended by Senate Bill 477 (collectively, the "electric restructuring
legislation"). This rate reduction became effective January 1, 1998.
The Note Issuer was organized for the limited purposes of issuing the
Notes and purchasing Transition Property. "Transition Property" is the right to
be paid a specified amount from nonbypassable tariffs authorized by the
California Public Utilities Commission (the "CPUC") pursuant to the electric
restructuring legislation. For financial reporting purposes, the purchase of
the Transition Property by the Note Issuer from Edison was treated as the
issuance of a promissory note by Edison to the Note Issuer in the amount of
approximately $2.5 billion. Accordingly, the purchase of the Transition
Property is classified as a note receivable on the accompanying financial
statements. Notwithstanding such classification of the Transition Property, the
Transition Property, for legal purposes, has been sold by Edison to the Note
Issuer.
4
<PAGE>
The Note Issuer is restricted by its organizational documents from
engaging in any other activities. In addition, the Note Issuer's organizational
documents require it to operate in such a manner that it should not be
consolidated in the bankruptcy estate of Edison, in the event Edison becomes
subject to such a proceeding.
The Note Issuer is legally separate from Edison. The assets and
revenues of the Note Issuer, including, without limitation, the Transition
Property, are not available to creditors of Edison or Edison International, and
the note receivable from Edison to the Note Issuer (i.e., the Transition
Property) is not legally an asset of Edison or Edison International.
5
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations.
The following analysis of the Note Issuer's financial condition and
results of operations is in an abbreviated format pursuant to Instruction H of
Form 10-Q. Such analysis should be read in conjunction with the Financial
Statements included herein, and the Financial Statements and Notes to the
Financial Statements included in the Note Issuer's Annual Report on Form 10-K.
The Note Issuer is a special purpose, single member limited liability
company organized in June 1997 for the limited purposes of owning the Transition
Property (as described below) and issuing notes secured primarily by the
Transition Property. Edison is the sole member of the Note Issuer and owns all
of the equity of the Note Issuer. The Note Issuer's organizational documents
require it to operate in a manner such that it should not be consolidated in the
bankruptcy estate of Edison in the event Edison becomes subject to such a
proceeding.
In December 1997, the Note Issuer acquired the Transition Property
(which for financial reporting purposes is treated as a note receivable) and
issued $2,463,000,000 in principal amount of the Notes with scheduled maturities
ranging from one to ten years and final maturities ranging from three to twelve
years. The Notes were issued pursuant to an indenture between the Note Issuer
and Bankers Trust Company of California, N.A., as trustee (the "Note
Indenture"). The Note Issuer sold the Notes to the Trust, which issued the
Certificates in a public offering. The Note Issuer entered into a servicing
agreement (the "Servicing Agreement") with Edison pursuant to which Edison is
required to service the Transition Property on behalf of the Note Issuer. In
addition, the Note Issuer has entered into an administrative services agreement
with Edison pursuant to which Edison performs certain administrative and
operational duties for the Note Issuer.
The California Public Utilities Code (the "PU Code") provides for the
creation of Transition Property. A financing order dated September 3, 1997 (the
"Financing Order") issued by the CPUC, together with the related Issuance Advice
Letter, establishes, among other things, separate nonbypassable charges (the
"FTA Charges") payable by residential electric customers and small commercial
electric customers in an aggregate amount sufficient to repay in full the
Certificates, fund the Overcollateralization Subaccount established under the
Note Indenture and pay all related costs and fees. Under the PU Code and the
Financing Order, the owner of the Transition Property is entitled to collect FTA
Charges until such owner has received amounts sufficient to retire all
outstanding series of Certificates and cover related fees and expenses and the
Overcollateralization Amount described in the Financing Order. The Transition
Property is a property right under California law that includes, without
limitation, ownership of the FTA Charges and any adjustments thereto as
described in the next paragraph.
In order to enhance the likelihood that actual collections with
respect to the Transition Property are neither more nor less than the amount
necessary to amortize the Notes in accordance with their expected amortization
schedules, pay all related fees and expenses, and fund certain accounts
established pursuant to the Note Indenture as required, the Servicing Agreement
requires Edison, as the servicer of the Transition Property (in such capacity,
the "Servicer"), to seek, and the Financing Order and the PU Code require the
CPUC to approve,
6
<PAGE>
periodic adjustments to the FTA Charges. Such adjustments will be based on
actual collections and updated assumptions by the Servicer as to future usage of
electricity by specified customers, future expenses relating to the Transition
Property, the Notes and the Certificates, and the rate of delinquencies and
write-offs. As of March 31, 1998, the Servicer has not sought any such
adjustments.
The Note Issuer is limited by its organizational documents from
engaging in any activities other than owning the Transition Property, issuing
notes secured by the Transition Property and other limited collateral, and
activities related thereto. Accordingly, income statement effects were limited
primarily to income generated from the Transition Property, interest expense on
the Notes, and incidental investment interest income. During the three month
period ended March 31, 1998, the income generated from the Transition Property
was approximately $39 million. The Note Issuer also earned approximately
$389,000 in interest on other investments. Interest expense of approximately $39
million relates to interest on the Notes and the amortization of debt issuance
costs.
The Note Issuer expects to use collections with respect to the
Transition Property to make scheduled principal and interest payments on the
Notes. Interest income earned on the Transition Property is expected to offset
(1) interest expense on the Notes, (2) amortization of debt issuance costs and
the discount on the Notes and (3) the fees charged by Edison for servicing the
Transition Property and providing administrative services to the Note Issuer.
Attached as Exhibit 99.1 is the Quarterly Servicer's Certificate for
the collection periods: December 1997 through February 1998 (dated March 16,
1998), delivered pursuant to the Note Indenture, which includes information
relating to the collections of the FTA Charges. As noted therein, collections
of FTA Charges are currently meeting expectations and were sufficient to pay
approximately 99% of all scheduled payments on the Notes and related expenses
for the first Note payment date (March 25, 1998). The remaining amount
(approximately $715,000) was drawn from the Capital Subaccount established
pursuant to the Note Indenture, which amount will be replenished to the extent
there are sufficient excess collections in the future. The FTA Charges will be
adjusted at least annually if there is a material shortfall or overage in
collections. The Note Issuer expects future collections of FTA Charges to be
sufficient to cover expenses and to make scheduled payments on the Notes on a
timely basis.
The Note Issuer does not expect any material adverse impact on the
Note Issuer or its financial position or results of operations as a result of
any inability of the computer systems on which it currently relies to recognize
the year 2000.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Omitted with respect to the Note Issuer pursuant to Instruction H
of Form 10-Q.
7
<PAGE>
PART II
Item 2. Changes in Securities and Use of Proceeds.
Omitted with respect to the Note Issuer pursuant to Instruction H
of Form 10-Q.
Item 3. Defaults Upon Senior Securities.
Omitted with respect to the Note Issuer pursuant to Instruction H
of Form 10-Q.
Item 4. Submission of Matters to a Vote of Security Holders.
Omitted with respect to the Note Issuer pursuant to Instruction H
of Form 10-Q.
Item 5. Other Information.
Attached, with respect to the Note Issuer and the Trust, as Exhibit
99.1 is the Quarterly Servicer's Certificate for the collection periods:
December 1997 through February 1998 (dated March 16, 1998), delivered pursuant
to the Note Indenture, which includes information relating to the collections of
the FTA Charges.
8
<PAGE>
Item 6. Exhibits and Reports on Form 8-K.
(a) The following exhibits are filed as a part of this report:
<TABLE>
<CAPTION>
Sequential
Numbered
Exhibit Exhibit
Number Page
- ------- ----------
<C> <S> <C>
3.1 Certificate of Formation (incorporated
by reference to the same titled exhibit
to the Note Issuer's Registration
Statement on Form S-3, File No.
333-30785)
3.2 Limited Liability Company Agreement
(incorporated by reference to the same
titled exhibit to the Note Issuer's
Registration Statement on Form S-3, File
No. 333-30785)
3.3 Amended and Restated Limited Liability
Company Agreement (incorporated by
reference to exhibit number 3.4 to the
Note Issuer's Registration Statement on
Form S-3, File No. 333-30785)
4.1 Note Indenture (incorporated by
reference to the same titled exhibit to
the Note Issuer's Current Report on Form
8-K filed with the Commission on
December 11, 1997)
4.2 Series Supplement (incorporated by
reference to the same titled exhibit to
the Note Issuer's Current Report on Form
8-K filed with the Commission on
December 11, 1997)
4.3 Note (incorporated by reference to the
same titled exhibit to the Note Issuer's
Current Report on Form 8-K filed with
the Commission on December 11, 1997)
4.4 Amended and Restated Declaration and
Agreement of Trust (incorporated by
reference to the same titled exhibit to
the Note Issuer's Current Report on Form
8-K filed with the Commission on
December 11, 1997)
4.5 First Supplemental Agreement of Trust
(incorporated by reference to the same
titled exhibit to the Note Issuer's
Current Report on Form 8-K filed with
the Commission on December 11, 1997)
4.6 Rate Reduction Certificate (incorporated
by reference to the same titled exhibit
to the Note Issuer's Current Report on
Form 8-K filed with the Commission on
December 11, 1997)
</TABLE>
9
<PAGE>
10.1 Transition Property Purchase and Sale
Agreement (incorporated by reference to
the same titled exhibit to the Note
Issuer's Current Report on Form 8-K
filed with the Commission on December
11, 1997)
10.2 Transition Property Servicing Agreement
(incorporated by reference to the same
titled exhibit to the Note Issuer's
Current Report on Form 8-K filed with
the Commission on December 11, 1997)
10.3 Note Purchase Agreement (incorporated by
reference to the same titled exhibit to
the Note Issuer's Current Report on Form
8-K filed with the Commission on
December 11, 1997)
10.4 Fee and Indemnity Agreement
(incorporated by reference to the same
titled exhibit to the Note Issuer's
Current Report on Form 8-K filed with
the Commission on December 11, 1997)
27.1 Financial Data Schedule for the quarter
ended March 31, 1998
99.1 Quarterly Servicer's Certificate dated
March 16, 1998
(b) Reports on Form 8-K filed during the quarter ended March 31,
1998.
The Note Issuer did not file any reports on Form 8-K for the fiscal
quarter ended March 31, 1998.
10
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Dated: May 14, 1998 SCE FUNDING LLC
as Registrant
By /s/ Mary C. Simpson
---------------------
Name: Mary C. Simpson
Title: Treasurer (Principal
Financial and
Accounting Officer)
<PAGE>
Exhibit Index
-------------
<TABLE>
<CAPTION>
Sequential
Numbered
Exhibit Exhibit
Number Page
- ------- ----------
<C> <S> <C>
3.1 Certificate of Formation (incorporated
by reference to the same titled exhibit
to the Note Issuer's Registration
Statement on Form S-3, File No.
333-30785)
3.2 Limited Liability Company Agreement
(incorporated by reference to the same
titled exhibit to the Note Issuer's
Registration Statement on Form S-3, File
No. 333-30785)
3.3 Amended and Restated Limited Liability
Company Agreement (incorporated by
reference to exhibit number 3.4 to the
Note Issuer's Registration Statement on
Form S-3, File No. 333-30785)
4.1 Note Indenture (incorporated by
reference to the same titled exhibit to
the Note Issuer's Current Report on Form
8-K filed with the Commission on
December 11, 1997)
4.2 Series Supplement (incorporated by
reference to the same titled exhibit to
the Note Issuer's Current Report on Form
8-K filed with the Commission on
December 11, 1997)
4.3 Note (incorporated by reference to the
same titled exhibit to the Note Issuer's
Current Report on Form 8-K filed with
the Commission on December 11, 1997)
4.4 Amended and Restated Declaration and
Agreement of Trust (incorporated by
reference to the same titled exhibit to
the Note Issuer's Current Report on Form
8-K filed with the Commission on
December 11, 1997)
4.5 First Supplemental Agreement of Trust
(incorporated by reference to the same
titled exhibit to the Note Issuer's
Current Report on Form 8-K filed with
the Commission on December 11, 1997)
4.6 Rate Reduction Certificate (incorporated
by reference to the same titled exhibit
to the Note Issuer's Current Report on
Form 8-K filed with the Commission on
December 11, 1997)
<PAGE>
10.1 Transition Property Purchase and Sale
Agreement (incorporated by reference to
the same titled exhibit to the Note
Issuer's Current Report on Form 8-K
filed with the Commission on December
11, 1997)
10.2 Transition Property Servicing Agreement
(incorporated by reference to the same
titled exhibit to the Note Issuer's
Current Report on Form 8-K filed with
the Commission on December 11, 1997)
10.3 Note Purchase Agreement (incorporated by
reference to the same titled exhibit to
the Note Issuer's Current Report on Form
8-K filed with the Commission on
December 11, 1997)
10.4 Fee and Indemnity Agreement
(incorporated by reference to the same
titled exhibit to the Note Issuer's
Current Report on Form 8-K filed with
the Commission on December 11, 1997)
27.1 Financial Data Schedule for the quarter
ended March 31, 1998
99.1 Quarterly Servicer's Certificate dated
March 16, 1998
</TABLE>
<TABLE> <S> <C>
<PAGE>
<ARTICLE> UT
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> MAR-31-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 0
<OTHER-PROPERTY-AND-INVEST> 0
<TOTAL-CURRENT-ASSETS> 308,971
<TOTAL-DEFERRED-CHARGES> 17,250
<OTHER-ASSETS> 2,140,023
<TOTAL-ASSETS> 2,466,244
<COMMON> 0
<CAPITAL-SURPLUS-PAID-IN> 14,804
<RETAINED-EARNINGS> (1,200)
<TOTAL-COMMON-STOCKHOLDERS-EQ> 13,604
0
0
<LONG-TERM-DEBT-NET> 2,145,500
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 304,477
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 2,663
<TOT-CAPITALIZATION-AND-LIAB> 2,466,244
<GROSS-OPERATING-REVENUE> 39,856
<INCOME-TAX-EXPENSE> 0
<OTHER-OPERATING-EXPENSES> 1,353
<TOTAL-OPERATING-EXPENSES> 1,353
<OPERATING-INCOME-LOSS> 38,503
<OTHER-INCOME-NET> 0
<INCOME-BEFORE-INTEREST-EXPEN> 38,503
<TOTAL-INTEREST-EXPENSE> 39,444
<NET-INCOME> (941)
0
<EARNINGS-AVAILABLE-FOR-COMM> 0
<COMMON-STOCK-DIVIDENDS> 0
<TOTAL-INTEREST-ON-BONDS> 39,444
<CASH-FLOW-OPERATIONS> 7,225
<EPS-PRIMARY> 0
<EPS-DILUTED> 0
</TABLE>
<PAGE>
EXHIBIT 99.1
QUARTERLY SERVICER'S CERTIFICATE
(to be delivered pursuant to Section 4.01(d)(ii) of
the Transition Property Servicing Agreement on or before each Remittance Date)
Southern California Edison Company, as Servicer
- --------------------------------------------------------------------------------
CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK SPECIAL PURPOSE TRUST
SCE-1
- --------------------------------------------------------------------------------
Pursuant to the Transition Property Servicing Agreement dated as of December 11,
1997 (the "Transition Property Servicing Agreement") between Southern California
Edison Company, as Servicer, and SCE Funding LLC, as Note Issuer, the Servicer
does hereby certify as follows:
COLLECTION PERIODS: DECEMBER 1997 THROUGH FEBRUARY 1998
DISTRIBUTION DATE: MARCH 25, 1998
Capitalized terms used in this Quarterly Servicer's Certificate have their
respective meanings set forth in the Transaction Property Servicing Agreement.
In WITNESS HEREOF, the undersigned has duly executed and delivered this
Quarterly Servicer's Certificate this 16th
day of March, 1998.
SOUTHERN CALIFORNIA EDISON COMPANY, as Servicer
By /s/ Mary C. Simpson
------------------------
Title Assistant Treasurer
---------------------
<PAGE>
QUARTERLY SERVICER'S CERTIFICATE
(to be delivered pursuant to Section 4.01(d)(ii) of
the Transition Property Servicing Agreement on or before each Remittance Date)
Southern California Edison Company, as Servicer
- --------------------------------------------------------------------------------
CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK SPECIAL PURPOSE TRUST
SCE-1
- --------------------------------------------------------------------------------
Pursuant to the Transition Property Servicing Agreement dated as of December 11,
1997 (the "Transition Property Servicing Agreement") between Southern California
Edison Company, as Servicer, and SCE Funding LLC, as Note Issuer, the Servicer
does hereby certify as follows:
COLLECTION PERIODS: DECEMBER 1997 THROUGH FEBRUARY 1998
DISTRIBUTION DATE: MARCH 25, 1998
<TABLE>
<S> <C>
1. AS OF THIS PAYMENT DATE
a. Required Overcollateralization Level $ 307,875.00
b. Required Capital Level 12,215,000.00
c. Outstanding principal balance of Series 1997-1 Notes
i. prior to giving effect to any payments made on this Payment Date 2,463,000,000.00
ii. per Expected Amortization Schedule 2,450,646,234.00
2. AMOUNTS AVAILABLE FOR DISTRIBUTION THIS PAYMENT DATE:
a. Remittances for December 1997 Collection Period $ 3,055,967.54
b. Remittances for January 1998 Collection Period 20,084,173.03
c. Remittances for February 1998 Collection Period 34,437,053.68
d. Net Earnings on Collection Account 199,962.89
e. General Subaccount Balance (sum of A through D above) 57,777,157.14
f. Reserve Subaccount Balance -
g. Overcollateralization Subaccount Balance -
h. Capital Subaccount Balance 12,215,000.00
i. Collection Account Balance (sum of E through H above) 69,992,157.14
3. DISTRIBUTION OF AMOUNTS REMITTED:
a. Note, Delaware, Certificate Trustee Fees $ 2,000.00
b. Servicing Fees 1,539,375.00
c. Quarterly Administration Fees 25,000.00
d. Operating Expenses (up to a maximum of $100,000.00) 5,527.48
e. Quarterly Interest 44,566,315.38
f. Principal Due and Payable -
g. Quarterly Principal 12,353,766.00
h. Operating Expenses in excess of those in D above -
i. Deposit to Overcollateralization Subaccount (up to required level) -
j. Deposit to Capital Subaccount (up to required level) -
k. Released to the Note Issuer: Net earnings on Collection Account -
l. Released to the Note Issuer upon Series retirement: Overcollateralization Subaccount -
m. Released to the Note Issuer upon Series retirement: Capital Subaccount Balance -
n. Deposit to Reserve Account -
o. Released to the Note Issuer upon Series retirement: Collection Account -
-------------------
TOTAL $ 58,491,983.86
===================
4. FOR THIS PAYMENT DATE
a. Withdrawal, if any, from Reserve Subaccount $ -
b. Withdrawal, if any, from Overcollateralization Subaccount -
c. Withdrawal, if any, from Capital Subaccount 714,826.72
</TABLE>
<PAGE>
QUARTERLY SERVICER'S CERTIFICATE
(to be delivered pursuant to Section 4.01(d)(ii) of
the Transition Property Servicing Agreement on or before each Remittance Date)
Southern California Edison Company, as Servicer
- --------------------------------------------------------------------------------
CALIFORNIA INFRASTRUCTURE AND ECONOMIC DEVELOPMENT BANK SPECIAL PURPOSE TRUST
SCE-1
- --------------------------------------------------------------------------------
Pursuant to the Transition Property Servicing Agreement dated as of December 11,
1997 (the "Transition Property Servicing Agreement") between Southern California
Edison Company, as Servicer, and SCE Funding LLC, as Note Issuer, the Servicer
does hereby certify as follows:
COLLECTION PERIODS: DECEMBER 1997 THROUGH FEBRUARY 1998
DISTRIBUTION DATE: MARCH 25, 1998
<TABLE>
<S> <C>
5. FOR THIS PAYMENT DATE
a. Current Payment Date March 25, 1998
b. Prior Payment Date* December 11, 1997
c. 30/360 Days in Interest Accrual Period (a-b 104
</TABLE>
6. INTEREST DUE AND PAYABLE AS OF THIS PAYMENT DATE
<TABLE>
<CAPTION>
Principal Amount
(before giving effect Interest Due
to any payments) Note Interest Rate for this Period Interest Paid
(A) (B) (A x B x 5c / 360) this Period
--------------------- ------------------ ------------------ ------------
<S> <C> <C> <C> <C>
a. Class A-1 $246,300,000.00 5.98% $ 4,254,969.33 $ 4,254,969.33
b. Class A-2 307,251,868.00 6.14% 5,449,965.36 5,449,965.36
c. Class A-3 247,840,798.00 6.17% 4,417,624.54 4,417,624.54
d. Class A-4 246,030,125.00 6.22% 4,420,887.98 4,420,887.98
e. Class A-5 360,644,658.00 6.28% 6,542,895.53 6,542,895.53
f. Class A-6 739,988,148.00 6.38% 13,638,803.78 13,638,803.78
g. Class A-7 314,944,403.00 6.42% 5,841,168.86 5,841,168.86
</TABLE>
7. PRINCIPAL AMOUNT AS OF THIS PAYMENT DATE
<TABLE>
<CAPTION>
Difference Between
Outstanding
Principal Amount
Principal Amount Principal Amount and Amount Shown
(before giving effect (after giving effect on Expected
to any payments) Principal Payment to any payments) Amortization
(A) (B) (A - B) Schedule
--------------------- ----------------- ------------------- ------------------
<S> <C> <C> <C> <C>
a. Class A-1 $246,300,000.00 $12,353,766.00 $ 233,946,234.00 $ -
b. Class A-2 307,251,868.00 - 307,251,868.00 -
c. Class A-3 247,840,798.00 - 247,840,798.00 -
d. Class A-4 246,030,125.00 - 246,030,125.00 -
e. Class A-5 360,644,658.00 - 360,644,658.00 -
f. Class A-6 739,988,148.00 - 739,988,148.00 -
g. Class A-7 314,944,403.00 - 314,944,403.00 -
-----------------
Total $2,450,646,234.00
-----------------
Projected outstanding balance of Series 1997-1 $2,450,646,234.00
</TABLE>
8. ENDING BALANCE THIS PAYMENT DATE:
a. Reserve Subaccount $ -
b. Overcollateralization Subaccount -
c. Capital Subaccount 11,500,173.28
* or Series Issuance Date in the case of the first payment date.
