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The Catalina Islander
Avalon, California
August 31, 2012     The Catalina Islander
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August 31, 2012

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Air event expands lineup PLANS ARE TAKING SHAPE FOR THE CATALINA AIR SHOW The latest updates include news that the Mallard, an amphibious plane that once plied the waters of Avalon, will be paying a visit dur- ing the Catalina Air Show, Sept. 29 and 30. Row 44, designers of in:flight Wi-Fi services, now owns the amphibious plane, based in Ca- marilla. The flying boat was originally designed for the US Air Force for ocean search and rescue of downed airmen. NASA as part Of the train- ing program also used this one for shuttle astronauts. During their training, the astronauts signed one of the cabin walls. The Air Show organizers have also announced two VIP viewing locations. From noon to 3 p.m. specta- tors can enjoy the show from Cas- tillo Del Mar, nestled under the Chimes Tower overlooking the Casino. It offers one of the best views in Avalon from the exten- sive cliff-side terrace at the home built in the late 1920s. It is the home of Blanny Avalon Hagenah, a great granddaughter of Wil- liam and Ada Wrigley. Hagenah, a large supporter of Island events, will host the VIP viewing of the Catalina Air Show. Guests will be .treated to re- freshments and a catered lunch by Steve's Steakhouse. There will be comfortable front-row seating with views of the entire Avalon Bay and the airspace above it. Ticket dona- tions are $125 per person. Due to the cliff side location of the home, many stairs and multiple levels wheelchairs and walkers cannot be accommodated. However, if guests are able to negotiate one flight of stairs special arrangements can be made for their attendance. Meanwhile, Hamilton Cove has offered their clubhouse for VIP viewing for the Catalina Air Show. Guests will be treated to re- freshments and mini sandwiches. The location will require a taxi ride. Go to www.catalinaairshow. cam and click on the link to make your reservation and donation. You will be connected to Catalina Meeting Specialists. You may use Pay Pal or your credit card for your donation of $75 per person. People Will also be able to tune in on their radio, 88.7 FM or on line, www.kislavalon.com and lis- ten to the Air Show, according to David Markowitz, station manager for KISL. "It eliminates the problem of one viewing .area where you can hear the announcer," Markowitz said. "Now you can be anywhere Watson From page .1 Canyon and saw some kind of illu- minated craft scoot over the ridge from the Palisades and then descend into !:i/  ............... :!: the canyon. I!:' :i He then watched with amazement as it drifted over the sleep- ing town of Avalon. As with Don and Isaac's sighting, Jim said the craft was completely silent--no sounds of any motor Jim Watson nor any whir of pro- Oolumnist pellers. Jim got on the phone and im- mediately called the Harbor Office on the pier, the only place he could think of where there would be someone on duty who was also in a position to be able to see what he had seen. Sure enough, one of the Harbor Patrol officers on duty had seen--and wondered about--the same thing. At the risk of being un-- romantic, the most likely "earthly" explanation for both the Ben Weston sight- ing and Jim Lehr's Avalon Canyon sighting involves the then-emerging tech- nology of drone aircraft or unmanned aerial ve- hicles. These UAVs were just coming into their own in the early 1990s, such as the Sikorsky Cypher VTOL, possibly operated by the Navy out of San Clemente or San Nicolas Island. Many of these UAVs use induct- ed fan propulsion systems, which are designed to render them virtu- ally silent. The three flashes of light that Don saw would probably have been photographs being taken. Although it's unsettling that the military might be using Catalina as a testing ground for their vari- ous contrivances (what else are they testing on us?), it's certainly not out of the question. As far as the Marine Corps,he- licopter and the "Men in Black" are concerned, perhaps the Navy lost track of the UAV and, fearing it may have crashed on the Island, went out to look for it. The Japa- nese Men in Black may have been the "Tech Department" for a pos- sible Japanese manufacturer, help- ing the Navy to look for their little lost prototype to see if they could get it flying again. But then again, maybe what Don, Isaac and Jim saw was some- thing else ... Capsule From page 3 times, the Banning yacht Ida sup- plied the campers. Some men swan out to the boats with baskets on their heads, while" other purchased the luxury items from rented rowboats. Esther Parsons started Bible class- es in their tent for the five children in Avalon, which she referred to as "a grain of salt." Later in June, Reverend H. P. Case of Los Angeles, organizer of Sunday schools in the Congrega- tional denomination, passed from tent to tent and every cottage, about 70 dwellings in all, inviting each person to come that afternoon to the large white canvas pavilion located near the south corner of Catalina and Crescent Avenues, to assist in organizing a permanent Sunday Schogl. There was a good response to the effort and Sophia Wheeler be- came the superintendent of Avalon First Sunday School. By the time that summer was in full swing, the attendance was so large that services were held Sunday in the tabernacle with Elder Dunton of Pasadena officiating. Rev. H. P. Case became the first "pastor" of this flock. The first school was started in early October by Mrs. Sophia Wheeler, in her bakery home. Her two pupils were "Nat" Eddy, 12, and Jimmy Elms, 16. The boys paid their tuition by rowing to Pebbly Beach to gather the oily mesquite roots used for fuel in the bakery ovens. Empty flour barrels were cleaned, then placed in the din: ing room with the top facing the viewer. This served to store books, which Mrs. Wheeler loaned to the boys and townsfolk, thus becom- ing Avalon's first lending library. to watch and the shows emcee will be right there with you" According to its organizers, The Catalina Air Shows mission is as follows: Educate the youth and general public of Catalinas aviation history. Stimulate the lo- cal economy during the normally The Mallad, amphibious airplane will e fea- tured in the Air Show. slower off-season. Attract local, regional and national media atten- tion to Santa Catalina Island. For more information, call Maggie Maki at (310) 510-2199. Los usuarios con ecceso al Internet podr,n leer y descargar esta notlflcaclbn an espaol en el sitio Web de SCE www.sce.com/avisos o escriba a: Southern California Edison Company P.O: Box 800 2244 Walnut Grove Avenue Rosemead, CA 91770 Atenci6n: Comunicaciones Corporativas NOTICE OF EVIDENTIARY HEARINGS REGARDING PROPOSED DECREASE IN ELECTRIC RATES BY SOUTHERN CALIFORNIA EDISON COMPANY (SCE) Application (A.) 12-04-015 The California Public Utilities Commission (Commission) has scheduled an Evidentiary Hearing (EH) for the Cost of Capital proceeding listed above. The date, time and location of the EH is as follows: Friday, September 14, 2012 10:00 AM CPUC Commission Courtroom State Office Building 505 Van Ness Ave. San Francisco, CA. 94102 Any change to the dates, times and locations of the EH will be posted to the CPUC's Daily Calendar. Locations for these hearings are wheelchair accessible. The purpose of the EH is to have an Administrative Law Judge preside over the administrative review and examination of evidence related to the proposed rate decrease in the Application of Southern California Edison Company for Authority to Establish its Authorized Cost of Capital for Utility Operations for 2013 and to Reset the Annual Cost of Cap#a/Adjustment Mechanism (A.12-04-015). SCE'S APPLICATION FILING On April 20, 2012, SCE filed Application No. 12-04-015 with the Commission requesting that the Commission review and authorize a cost of capital for test year 2013. The authorized cost of capital determines the amount of money SCE is allowed in rates as a return on its invested capital. In this proceeding, the Commission will determine the reasonable costs of long-term debt, preferred stock, and common stock that are part of the authorized cost of capital. SCE recommends no change in its currently authorized ratemaking capital structure at this time. Therefore, SCE requests Commission authorization of the following capital structure, costs of long-term debt and preferred equity, and return on common equity, to become effective January 1, 2013: 2013 Recommended Cost of Capital for SCE Component Percentage Cost Weighted Cosl Lgnq-Term Debt 43.00% 5.53% 2.38% Preferred Equity 9.00% 5.86% 0.53% Common Equity 48.00% 11.100/ 5.33% Total 100.00% 8.24% The authorized cost of capital adopted in this application will be applied to capital investment authorized in SCE's pending General Rate Case (GRC) application. Assuming that SCE's requested capital investment is adopted in the GRC, SCE's annual revenue requirement will decrease by approxima!ely $92.8 million beginning on January 1,2013. SCE is requesting a return on common equity of 11.10% and a return on rate base of 8.24%. SCE's requested cost of capital will faidy compensate those who invest in SCE, and permit SCE to attract capital to meet its obligations to serve its customers safely and efficiently. SCE also re/:luests that its cost of capital adjustment mechanism be continued without modification for a three-year term (including 2013), so that SCE's next cost of capital application will be filed in eady 2015 for test year 2016. SCE's current mechanism is based on the 12-month average of the Moody's Baa long-term utility bend rate index. In October of each year, the most recant 12-month average for this rate is compared to a benchmark value. If the difference between the two is more than 100 basis points or less than minus 100 basis points, a new ROE is established. The Commission has decided to address SCE's request for a mechanism in a separate phase of this proceeding next year. The following table shows an estimate of proposed revenues and rate changes by customer group. The percentage decrease in total revenue is $92.8 million or -.83%, beginning in 2013. Any revenue change resulting from this application will be consolidated with revenue changes .from other SCE applications, ff the Commission should approve total rates as requested, an average residential electric customer using 600 kilowatt-hours per month would expect to see a decrease of $1.01 per month, from $104.92 to $103.91. The following table shows current rates compared to an estimate of proposed revenue and rate changes by customer group. Customer Group Revenue Impact Cost of Capital Application for 2013 Customer Group Revenue Change ($OO0 Residential -44,494 Lighting - Small and Medium Power -3258E Large Power -12,67C Agricultural and Pumping -2,813 Street and Area Liqhtinq -301 Total -92,86E FOR FURTHER INFORMATION FROM SCE Bundled % Change Present Rates Proposed (C/kWh) Rates (C/kWh) -0.99% 16,06 15.91 -0.79% 15.27 15.15 -0.60% 10.20 10.13 -0.79% 11.66 11.56 -0.23% 18.13 18.09 -0.83% 14.30 14.18 You may also view a copy of the application at the Commission's website, htta:lldocs.ceuc.ca.aov/ EFILF_JN136644.htm. or by writing to SCE at the Rosemead mailing address below. You may also review a copy of this Application and related exhibits at SCE's corporate headquarters (2244 Walnut Grove Avenue, Rosemead, CA 91770), at the Los Angeles Office of the Commission at the address shown above, or at the following SCE business offices: 1 Pebbly Beach Rd. 30553 Rimrock Rd. 374 Lagoon St., Avalon, CA 90704 Barstow, CA 92311 Bishop, CA 93514 505 W. 14 = Ave. 3001 Chateau Rd. 510 S. China Lake Blvd., Blythe, CA 92225 Mammoth Lakes, CA 93546 Ridgecrest, CA 93555 26364 Pine Ave. 41694 Dinkey Creek Rd. Shaver 421 W. J St., Rimforest, CA 92378 Lake, CA 93664 Tehachapi, CA 93561 120 Woodland Dr., 6999 Old Woman Springs Rd. Wofford Heights, CA 93285 , Ydcca Valley, CA 92284 For further information from SCE regarding this Application, please write to: Southern California Edison Company 2244 Walnut Grove Avenue Rosemead, CA 91770 Attention: Case Administration EVIDENTIARY HEARINGS and COMMISSION PROCESS Evidentiary hearings will be held at a designated CPUC hearing room in San Francisco, CA at the address listed above.. The hearing is scheduled to begin on September 14, 2012 at 10:00 a.m., and will continue on September 21st (10:00 a.m.), 24th, 28th, and continuing as needed. The CPUC holds evidentiary hearings whereby the formal parties of record provide testimony and are subject to cross-examination befo;*e the CPUC's ALJ. These hearings are open to the public to attend and listen, but only those who are formal parties of record are allowed to participate. One party is the Division of Ratepayer Advocates (DRA), which consists of engineers, accountants, economists and attorneys who independently evaluate the proposals of utilities and present their analyses and recOmmendations for the CPUC at the evidentiary hearings. The CPUC has its own court reporters who will record the participation of parties in the evidentiary hearings. Parties may offer proposals that differ from those presented in SCE's application. Once hearings are completed, the ALJ will consider all of the evidence presented and release a proposed decision. When the CPUC issues a final decision, it may adopt, amend or modify all or part of the ALJ's proposed decision. The final decision may differ from the requests filed by SCE in its proposed application. FOR MORE INFORMATION ABOUT THE EVIDENTIARY HEARINGS If you would like further information on the evidentiary hearing process or if you wish to submit written comments or informally protest this application as a customer of SCE, you may do so by contacting the CPUC's Public Advisor's Office at the address or e-mail shown below. Please state that you are wdting concerning SCE's A.12-04-015, et al. All public comments are circulated to the Commissioners, the assigned ALJ, and other line Divisions working on this matter. All public comments are also provided to the Commission's Formal Files Office as part of the formal public comment file for this proceeding. The Public Advisor's Office California Public Utilities Commission 505 Van Ness Avenue, Room 2103 San Francisco, CA 94102 E-Maih public.Advisorceuc.ca.aov Telephone: (415) 703-2074 or toll free: 1-866-849-8390 "I-FY: (415) 703-5282 or toll free TTY: 1-866-836-7825 THE CATAUNA ISLANDER Friday, August 31, 2012 i 13.