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&lt;p style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;&lt;b&gt;Note&amp;nbsp;14. Related-Party Transactions &lt;br /&gt;&lt;/b&gt;&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;Specified administrative services such as payroll and employee benefit programs, all performed by Edison International or SCE employees, are shared among all affiliates of Edison International, and the costs of these corporate support services are allocated to all affiliates, including EME. Costs are allocated based on one of the following formulas: percentage of time worked, equity in investment and advances, number of employees, or multi-factor (operating revenues, operating expenses, total assets and number of employees). In addition, services of Edison International or SCE employees are sometimes directly requested by EME and these services are performed for EME's benefit. Labor and expenses of these directly requested services are specifically identified and billed at cost. EME believes the allocation methodologies utilized are reasonable. EME made reimbursements for the cost of these programs and other services, which amounted to $55&amp;nbsp;million, $66&amp;nbsp;million and $76&amp;nbsp;million in 2009, 2008 and 2007, respectively. At December&amp;nbsp;31, 2009 and 2008, the amount due to Edison International was $14&amp;nbsp;million and $15&amp;nbsp;million, respectively.&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;EME participates in the insurance program of Edison International, including property, general liability, workers compensation and various other specialty policies. EME's insurance premiums are generally based on EME's share of risk related to each policy. In connection with the property insurance program, a portion of the risk is reinsured by a captive insurance subsidiary of Edison International.&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;Edison Mission Operation&amp;nbsp;&amp;amp; Maintenance,&amp;nbsp;Inc., an indirect, wholly owned affiliate of EME, has entered into operation and maintenance agreements with partnerships in which EME has a 50% or less ownership interest. Pursuant to the negotiated agreements, Edison Mission Operation&amp;nbsp;&amp;amp; Maintenance is to perform all operation and maintenance activities necessary for the production of power by these partnerships' facilities. The agreements continue until terminated by either party. Edison Mission Operation&amp;nbsp;&amp;amp; Maintenance is paid for all costs incurred with operating and maintaining such facilities and may also earn incentive compensation as set forth in the agreements. EME recorded revenues under the operation and maintenance agreements of $26&amp;nbsp;million for 2009, $28&amp;nbsp;million for 2008 and $30&amp;nbsp;million for 2007. Receivables from affiliates for Edison Mission Operation&amp;nbsp;&amp;amp; Maintenance totaled $6&amp;nbsp;million and $7&amp;nbsp;million at December&amp;nbsp;31, 2009 and 2008, respectively. &lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;EME owns interests in partnerships that sold electricity generated by their project facilities to SCE and others under the terms of power purchase agreements. Sales by these partnerships to SCE under these agreements amounted to $366&amp;nbsp;million, $686&amp;nbsp;million and $747&amp;nbsp;million in 2009, 2008 and 2007, respectively.&lt;/font&gt;&lt;/p&gt;
&lt;p style="FONT-FAMILY: times"&gt;&lt;font size="2"&gt;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;&amp;nbsp;During the first quarter of 2008, a subsidiary of EME was awarded by SCE, through a competitive bidding process, a 10-year power sales contract starting in 2013 for the output of a 479 MW gas-fired peaking facility located in the City of Industry, California, which is referred to as the Walnut Creek project. In July 2008, the Los Angeles Superior Court found that actions taken by the SCAQMD, in promulgating rules that had made available a "Priority Reserve" of emissions credits for new power generation projects, did not satisfy California environmental laws. In a November 2008 decision, the Los Angeles Superior Court enjoined SCAQMD from issuing Priority Reserve emission credits to Walnut Creek and other projects. Legal challenges related to the Priority Reserve emission credits are continuing. Legislation that passed the State Assembly and is currently pending in the Senate would provide access to the credits for Walnut Creek, subject to further regulatory steps and litigation risk. In the air basins regulated by SCAQMD, the need for particulate matter (PM10) and SO&lt;sub&gt;2&lt;/sub&gt; emission credits exceeds available supply, and it is difficult to create new qualifying credits. Construction on the Walnut Creek project will not begin until its access to the Priority Reserve emission credits is restored or another source of credits is identified. The capital costs to construct this project, excluding interest, are estimated in the range of $500&amp;nbsp;million to $600&amp;nbsp;million.&lt;/font&gt;&lt;/p&gt;&lt;/td&gt;&lt;/tr&gt;&lt;/table&gt;
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