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, 2000.
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,
2000 1999
----------------- -------------
(Unaudited)
ASSETS
Current Assets:
<S> <C> <C>
Cash & equivalents $ 1,316 $ 1,318
Restricted funds 29,999 35,946
Current portion of note receivable 247,841 246,300
Interest receivable 13 5
----------------------- -----------------------
Total Current Assets 279,169 283,569
----------------------- -----------------------
Other Assets:
Note receivable - net of discount 1,656,985 1,712,114
Unamortized bond issuance costs 14,137 14,593
----------------------- -----------------------
Total Other Assets 1,671,122 1,726,707
----------------------- -----------------------
Total Assets $ 1,950,291 $ 2,010,276
======================= =======================
LIABILITIES AND MEMBER'S EQUITY
Current Liabilities:
Interest payable $ 2,470 $ 2,220
Current portion of long-term debt 247,841 246,300
Miscellaneous accrued expenses 67 70
----------------------- -----------------------
Total Current Liabilities 250,378 248,590
----------------------- -----------------------
Long term debt - net of discount 1,661,077 1,723,552
----------------------- -----------------------
Member's equity 38,836 38,134
----------------------- -----------------------
Total Liabilities and Member's Equity $ 1,950,291 $ 2,010,276
======================= =======================
</TABLE>
The accompanying notes are an integral part of these financial statements
1
<PAGE>
SCE FUNDING LLC
STATEMENTS OF OPERATIONS AND CHANGES IN MEMBER'S EQUITY
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
3 Months Ended
March 31,
---------------------------------------------------------
2000 1999
------------------------ ---------------------------
OPERATING REVENUES:
<S> <C> <C>
Interest Income $ 32,239 $ 35,619
------------------------ ------------------------
Total Operating Revenue 32,239 35,619
------------------------ ------------------------
OPERATING EXPENSES:
Interest Expense 31,526 35,298
Other Expenses 1,268 1,425
------------------------ ------------------------
Total Operating Expenses 32,794 36,723
------------------------ ------------------------
Net Loss (555) (1,104)
Member's Equity, beginning of period 38,134 23,167
Member Contributions- net 1,257 5,854
------------------------ ------------------------
Member's Equity, end of period $ 38,836 $ 27,917
======================== ========================
</TABLE>
The accompanying notes are an integral part of these financial statements
2
<PAGE>
SCE FUNDING LLC
STATEMENTS OF CASH FLOWS
(Unaudited)
(in thousands)
<TABLE>
<CAPTION>
3 Months Ended
March 31,
---------------------------------------------------
2000 1999
------------------------ ------------------------
Cash Flows from Operating Activities:
<S> <C> <C>
Net Loss $ (555) $ (1,104)
Adjustment for non-cash items:
Amortization - 1
Changes in working capital:
Restricted funds 5,947 (4,390)
Receivables (8) 985
Interest payable 250 (60)
Accounts payable and other current liabilities (3) (489)
------------------------ ------------------------
Net Cash Provided by Operating Activities 5,631 (5,057)
------------------------ ------------------------
Cash Flows from Financing Activities:
Payment of principal on rate reduction notes (60,951) (70,531)
------------------------ ------------------------
Net Cash Used by Financing Activities (60,951) (70,531)
------------------------ ------------------------
Cash Flows from Investing Activities:
Note receivable collections from SCE 54,061 70,531
Equity contributions from SCE 1,257 5,854
------------------------ ------------------------
Net Cash Provided by Investing Activities 55,318 76,385
------------------------ ------------------------
Net increase (decrease) in Cash and equivalents (2) 797
Cash and equivalents, beginning of period 1,318 183
------------------------ ------------------------
Cash and equivalents, end of period $ 1,316 $ 980
======================== ========================
</TABLE>
The accompanying notes are an integral part of these financial statements
3
<PAGE>
SCE FUNDING LLC
NOTES TO FINANCIAL STATEMENTS
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.
SCE Funding LLC's significant accounting policies 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, 1999, filed with the Securities and
Exchange Commission. SCE Funding LLC follows the same accounting policies for
interim reporting purposes. Results of operations for the interim periods are
not necessarily indicative of results to be expected for a full year. This
quarterly report should be read in conjunction with SCE Funding LLC's Annual
Report on Form 10-K.
Note 1. Basis of Presentation.
The financial statements include the accounts of SCE Funding LLC (also
referred to as the Note Issuer), a Delaware special purpose limited liability
company, whose sole member is Southern California Edison Company (SCE), a
provider of electric services. All of the issued and outstanding common stock of
SCE is owned by its parent holding company, Edison International. SCE Funding
LLC was organized in June 1997, in order to effect the purchase from SCE 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 (Notes) to the California Infrastructure and Economic Development Bank
Special Purpose Trust SCE-1 (Trust) which issued certificates (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 SCE to provide a 10% electric rate reduction to SCE's
residential and small commercial customers in connection with electric industry
restructuring mandated by California Assembly Bill 1890, as amended by
California Senate Bill 477 (collectively, the electric restructuring
legislation). This rate reduction became effective January 1, 1998.
SCE Funding LLC 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 non-bypassable tariffs authorized by the California
Public Utilities Commission (CPUC) pursuant to the 1995 electric restructuring
legislation. For financial reporting purposes, the purchase of the Transition
Property by the Note Issuer from SCE was treated as the issuance of a promissory
note by SCE to SCE Funding LLC, 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, the Transition Property, for legal purposes, has been sold by
SCE to SCE Funding LLC.
4
<PAGE>
SCE Funding LLC is restricted by its organizational documents from
engaging in any other activities. In addition, its organizational documents
require it to operate in such a manner that it should not be consolidated in the
bankruptcy estate of SCE, in the event SCE becomes subject to such a proceeding.
SCE Funding LLC is legally separate from SCE. The assets and revenues
of the Note Issuer, including, without limitation, the Transition Property, are
not available to creditors of SCE or Edison International, and the note
receivable from SCE to SCE Funding LLC (i.e., the Transition Property) is not
legally an asset of SCE or Edison International.
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 SCE Funding LLC's 1999 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. SCE is the sole member 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 SCE in the event SCE
becomes subject to such a proceeding.
The Note Issuer issued $2,463,000,000 in principal amount of the Notes
in December 1997 with scheduled maturities ranging from 1 to 10 years and final
maturities ranging from 3 to 12 years, pursuant to an indenture with Bankers
Trust Company of California, N.A., as trustee (Note Indenture). The Note Issuer
also entered into a servicing agreement (Servicing Agreement) with SCE that
requires SCE to service the Transition Property on behalf of the Note Issuer.
The California Public Utilities Code (PU Code) provides for the
creation of Transition Property. A financing order dated September 3, 1997
(Financing Order), issued by the CPUC, together with the related Issuance Advice
Letter, establishes, among other things, separate non-bypassable charges (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
5
<PAGE>
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
SCE, as the Servicer of the Transition Property to seek, and the Financing Order
and the PU Code require the CPUC to approve, 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. On August 19,
1999, SCE filed with the CPUC an anniversary true-up mechanism advice letter
filing. The filing, effective October 1, 1999, decreased the FTA Charges by 5%,
from 1.306 cents to 1.235 cents per kilowatt hour for residential customers and
from 1.381 cents to 1.306 cents per kilowatt hour for small commercial
customers. On December 16, 1999, SCE filed with the CPUC a routine annual
true-up mechanism advice letter filing stating that because of the changes in
FTA Charges effective October 1, 1999, no further FTA Charge adjustments were
necessary.
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 are limited
primarily to income generated from the Transition Property, interest expense on
the Notes, servicing fees to SCE, and incidental investment interest income.
During the three month period ended March 31, 2000, the income generated from
the Transition Property was approximately $32 million compared to $36 million
for the same period in 1999. The decrease is due to lower FTA Charges per
kilowatt hour, effective October 1999. Interest expense for the three months
ended March 31, 2000 was $30 million compared to $35 million for the same period
in 1999, and includes interest on the Notes and the amortization of debt
issuance costs. The decrease is due to a lower outstanding principal balance on
the rate reduction notes.
The Note Issuer uses 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 SCE 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 1999 through February 2000 (dated March 15,
2000), delivered pursuant to the Note Indenture, which includes information
relating to the collections of the FTA Charges. As noted therein on line 4e,
collections of FTA Charges and interest earnings on FTA collections (the General
Subaccount Balance) totaled $87.4 million and were sufficient to pay
approximately 93% of all scheduled distributions and related expenses on the
Notes ($93.3 million) for the scheduled Note payment date (March 25, 2000) and
required a withdrawal of approximately
6
<PAGE>
$6.5 million from a previously established reserve sub-account. The FTA Charges
will be adjusted at least annually if there is a material shortfall or overage
in collections; however, no further adjustments are currently planned and the
Note Issuer expects future collections of FTA Charges to be sufficient to cover
expenses and to make scheduled distributions on the Notes on a timely basis.
Forward-looking Information
In the preceding Management's Discussion and Analysis of Financial
Condition and Results of Operations, and elsewhere in this annual report, the
Note Issuer uses the words could, estimates, expects, anticipates, believes,
planned and other similar expressions that are intended to identify
forward-looking information that involves risks and uncertainties. Actual
results or outcomes could differ materially as a result of such important
factors as the commencement and outcome of voter initiatives and legal or
regulatory proceedings challenging the collection of FTA Charges or payment of
the Notes or Certificates.
Item 3. Quantitative and Qualitative Disclosures About Market Risk.
Omitted with respect to the Note Issuer pursuant to Instruction H of
Form 10-Q.
PART II
Item 1. Legal Proceedings.
Omitted because there are no reportable proceedings.
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 1999 through February 2000 (dated March 15, 2000), delivered pursuant
to the Note Indenture, which includes information relating to the collections of
the FTA Charges.
7
<PAGE>
Item 6. Exhibits and Reports on Form 8-K.
(a) See the Exhibit Index of this report below.
(b) Reports on Form 8-K filed during the quarter ended March 31, 2000.
The Note Issuer did not file any reports on Form 8-K for the
fiscal quarter ended March 31, 2000.
8
<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 11, 2000 SCE FUNDING LLC
as Registrant
By Mary C. Simpson
----------------------------------------------
Name: Mary C. Simpson
Title: Treasurer (Principal Financial and
Accounting Officer)
<PAGE>
Exhibit Index
Exhibit
Number
- -------
3.1 Certificate of Formation (incorporated by reference to the same titled
and numbered 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 and numbered 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 the same
titled exhibit, included as exhibit number 3.4 to the
Note Issuer's Registration Statement on Form S-3,
File No.
333-30785)*
27 Financial Data Schedule for the three months ended March 31, 2000
99 Quarterly Servicer's Certificate dated March 15, 2000
- ----------------
* Incorporated by reference pursuant to Rule 12b-32.
<TABLE> <S> <C>
<ARTICLE> UT
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 3-MOS
<FISCAL-YEAR-END> DEC-31-2000
<PERIOD-START> JAN-01-2000
<PERIOD-END> MAR-31-2000
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 0
<OTHER-PROPERTY-AND-INVEST> 0
<TOTAL-CURRENT-ASSETS> 279,169
<TOTAL-DEFERRED-CHARGES> 0
<OTHER-ASSETS> 1,671,122
<TOTAL-ASSETS> 1,950,291
<COMMON> 0
<CAPITAL-SURPLUS-PAID-IN> 47,553
<RETAINED-EARNINGS> (8,717)
<TOTAL-COMMON-STOCKHOLDERS-EQ> 38,836
0
0
<LONG-TERM-DEBT-NET> 1,661,077
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 247,841
0
<CAPITAL-LEASE-OBLIGATIONS> 0
<LEASES-CURRENT> 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 2,537
<TOT-CAPITALIZATION-AND-LIAB> 1,950,291
<GROSS-OPERATING-REVENUE> 32,239
<INCOME-TAX-EXPENSE> 0
<OTHER-OPERATING-EXPENSES> 1,268
<TOTAL-OPERATING-EXPENSES> 1,268
<OPERATING-INCOME-LOSS> 30,971
<OTHER-INCOME-NET> 0
<INCOME-BEFORE-INTEREST-EXPEN> 30,971
<TOTAL-INTEREST-EXPENSE> 31,526
<NET-INCOME> (555)
0
<EARNINGS-AVAILABLE-FOR-COMM> (555)
<COMMON-STOCK-DIVIDENDS> 0
<TOTAL-INTEREST-ON-BONDS> 31,526
<CASH-FLOW-OPERATIONS> 5,631
<EPS-BASIC> 0
<EPS-DILUTED> 0
</TABLE>
Page 1 of 3 March 15, 2000
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 1999 through February 2000
Distribution Date: March 27, 2000
Capitalized terms used in this Quarterly Servicer's Certificate have
their respective meanings set forth in the Transition Property Servicing
Agreement.
In WITNESS WHEREOF, the undersigned has duly executed and delivered
this Quarterly Servicer's Certificate this 16th day of March, 2000.
SOUTHERN CALIFORNIA EDISON COMPANY, as Servicer
By: Mary C. Simpson
---------------------------------------------
Mary C. Simpson
Title: Assistant Treasurer
1. Distribution of Principal per $1,000 of Original Principal Amount
<TABLE>
<CAPTION>
Principal Payment
per $1,000 of
Original Principal
Original Principal Principal Payment Amount
(A) (B) (B /A x 1,000)
<S> <C> <C> <C>
a. Class A-1 $ 246,300,000.00 $ - $ -
b. Class A-2 307,251,868.00 60,951,868.00 198.37753436
c. Class A-3 247,840,798.00 - -
d. Class A-4 246,030,125.00 - -
e. Class A-5 360,644,658.00 - -
f. Class A-6 739,988,148.00 - -
g. Class A-7 314,944,403.00 - -
2. Distribution of Interest per $1,000 of Original Principal Amount
Interest Payment per
$1,000 of Original
Original Principal Interest Payment Principal Amount
(A) (B) (B / A x 1,000)
a. Class A-1 $ 246,300,000.00 $ - $ -
b. Class A-2 307,251,868.00 935,611.17 3.04509514
c. Class A-3 247,840,798.00 3,822,944.31 15.42500000
d. Class A-4 246,030,125.00 3,825,768.44 15.54999998
e. Class A-5 360,644,658.00 5,662,121.13 15.70000000
f. Class A-6 739,988,148.00 11,802,810.96 15.95000000
g. Class A-7 314,944,403.00 5,054,857.67 16.05000001
</TABLE>
<PAGE>
Page 2 of 3 March 15, 2000
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:
<TABLE>
<CAPTION>
Collection Periods: December 1999 through February 2000
Distribution Date: March 27, 2000
3. As of this Payment Date
<S> <C>
a. Required Overcollateralization Level $ 2,770,875.00
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 1,970,400,000.00
ii. per Expected Amortization Schedule 1,909,448,132.00
4. Amounts available for distribution this Payment Date:
a. Remittances for December 1999 Collection period $ 27,359,318.40
b. Remittances for January 2000 Collection Period 29,283,106.35
c. Remittances for February 2000 Collection Period 29,779,759.71
d. Net Earnings on Collection Account 962,584.20
e. General Subaccount Balance (sum of a through d above) 87,384,768.66
f. Reserve Subaccount Balance 20,670,234.96
g. Overcollateralization Subaccount Balance 2,463,000.00
h. Capital Subaccount Balance 12,215,000.00
i. Collection Account Balance (sum of e through h above) 122,733,003.62
5. Distribution of amounts remitted:
a. Note, Delaware, Certificate Trustee Fees $ 1,123.33
b. Servicing Fees 1,231,500.00
c. Quarterly Administration Fees 25,000.00
d. Operating Expenses (up to a maximum of $100,000.00) 12,510.60
e. Quarterly Interest 31,104,113.68
f. Principal Due and Payable -
g. Quarterly Principal 60,951,868.00
h. Operating Expenses in excess of those in d above -
i. Deposit to Overcollateralization Subaccount (up to required level) 307,875.00
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 Note Issuer upon Series Retirement: Collection Account -
-------------------
TOTAL $ 93,633,990.61
===================
6. For this Payment Date
a. Withdrawal, if any, from Reserve Subaccount (including $298,825.62 in net earnings) $ 6,548,047.57
b. Withdrawal, if any, from Overcollateralization Subaccount (including
$34,213.79 in net earnings) 34,213.79
c. Withdrawal, if any, from Capital Subaccount (including $176,064.85 in net earnings) 176,064.85
</TABLE>
<PAGE>
Page 3 of 3 March 15, 2000
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 1999 through February 2000
Distribution Date: March 27, 2000
7. For this Payment Date
a. Current Payment Date March 25, 2000
b. Prior Payment Date* December 25, 1999
c. 30/360 Days in Interest Accrual Period (a-b) 90
8. 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 7c /360) this Period
<S> <C> <C> <C> <C>
a. Class A-1 $ - 5.98% $ - $ -
b. Class A-2 60,951,868.00 6.14% 935,611.17 935,611.17
c. Class A-3 247,840,798.00 6.17% 3,822,944.31 3,822,944.31
d. Class A-4 246,030,125.00 6.22% 3,825,768.44 3,825,768.44
e. Class A-5 360,644,658.00 6.28% 5,662,121.13 5,662,121.13
f. Class A-6 739,988,148.00 6.38% 11,802,810.96 11,802,810.96
g. Class A-7 314,944,403.00 6.42% 5,054,857.67 5,054,857.67
9. Principal amount as of this Payment Date
Difference Between
Outstanding
Principal Amount
Principal Amount Principal Amount and Amount Shown
(before giving effect (after giving effect to on Expected
to any payments) Principal Payment any payments) Amortization
(A) (B) (A-B) Schedule
a. Class A-1 $ - $ - $ - $ -
b. Class A-2 60,951,868.00 60,951,868.00 - -
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 $1,909,448,132.00
-----------------
Projected outstanding balance of Series 1997-1 $1,909,448,132.00
</TABLE>
10. Ending balance this Payment Date:
a. Reserve Subaccount $ 14,421,013.01
b. Overcollateralization Subaccount 2,770,875.00
c. Capital Subaccount 12,215,000.00
* or Series issuance Date in the case of the first payment date.
