In a regulatory filing Edison International disclosed that SCE filed an Offer of Settlement with the Federal Energy Regulatory Commission, FERC, on August 26, on its request to implement formula rates, effective January 1, 2012. If approved by FERC, the formula rate tariff will determine SCE's FERC transmission revenue requirement, including its construction work in progress through December 31, 2017. The settlement provides for a base ROE of 9.30%, the previously authorized 50 basis point incentive for CAISO participation and individual, previously authorized project incentives. The settlement would result in a weighted average ROE of approximately 10.45%. The settlement ROE will remain in effect until at least June 30, 2015, when the moratorium, provided for in the settlement, on modifications to the formula rate tariff ends. The transmission revenue requirements and rates that have been in effect and that have been billed to customers since January 1, 2012, were based on a total FERC weighted average ROE of 11.1%. Although the settlement's provisions and adjustments will result in customer refunds of approximately $200M during 2014, it will not have a material effect on SCE earnings in 2013.