`===============================================================================================================
                                                 UNITED STATES
                                      SECURITIES AND EXCHANGE COMMISSION
                                            Washington, D.C. 20549
---------------------------------------------------------------------------------------------------------------


                                                   FORM 10-K

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL INSTRUCTION I 1(a) AND (b) OF FORM 10-K AND IS
THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT.
(Mark One)
|X|  ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
     For the fiscal year ended December 31, 2006.
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 212T, Rosemead, California                                        91770
  (Address of principal executive offices)                                 (Zip Code)

                  Registrant's telephone number, including area code:  (626) 302-1850

                   Securities registered pursuant to Section 12(b) of the Act: None

                      Securities registered pursuant to Section 12(g) of the Act:

---------------------------------------------------------------------------------------------------------------
                            California Infrastructure and Economic Development Bank
---------------------------------------------------------------------------------------------------------------
                    Special Purpose Trust SCE-1 Rate Reduction Certificates, Series 1997-1:
                                         Class A-7 6.42% Certificates,
                              maturing 2009, and underlying SCE Funding LLC Notes
---------------------------------------------------------------------------------------------------------------
                                               (Title of Class)

Page i



Indicate  by check  mark if the  registrant  is a  well-known  seasoned  issuer,  as defined in Rule 405 of the
Securities Act.  Yes |_|    No |X|

Indicate by check mark if the  registrant  is not  required to file  reports  pursuant to Section 13 or Section
15(d) of the Exchange Act.  Yes |_|    No |X|

Indicate by check mark 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
the past 90 days.
Yes |X|    No |_|

Indicate  by check mark if  disclosure  of  delinquent  filers  pursuant to Item 405 of  Regulation  S-K is not
contained  herein,  and will not be contained,  to the best of registrant's  knowledge,  in definitive proxy or
information  statements  incorporated  by reference in Part III of this Form 10-K or any amendment to this Form
10-K.  |X|

Indicate  by check mark  whether  the  registrant  is a large  accelerated  filer,  an  accelerated  filer or a
non-accelerated  filer. See definition of "accelerated  filer" and "large  accelerated filer" in Rule 12b-12 of
the Exchange Act. (Check One):
Large Accelerated Filer |_|    Accelerated Filer  |_|     Non-accelerated filer   |X|

Indicate by check mark  whether the  registrant  is a shell  company (as defined in Rule 12b-2 of the  Exchange
Act).  Yes |_|    No |X|

The aggregate market value of the voting and non-voting common equity held by non-affiliates of the
registrant as of June 30, 2006 was $0.

                                      DOCUMENTS INCORPORATED BY REFERENCE

Not applicable.
===============================================================================================================

Page ii


                                                    PART I

ITEM 1.  BUSINESS

General

SCE Funding LLC (Note Issuer) is a special purpose, single member limited liability company organized under
the laws of the State of Delaware. Southern California Edison Company (SCE), as the sole member of the Note
Issuer, owns all of the equity securities of the Note Issuer. The principal executive office of the Note
Issuer is located at 2244 Walnut Grove Avenue, Room 212T, Rosemead, California 91770. Its telephone number is
(626) 302-1850. The Note Issuer was organized in June 1997 for the limited purposes of owning the Transition
Property (as described below) and issuing notes secured by the Transition Property and other limited
collateral and related activities, and is restricted by its organizational documents from engaging in other
activities. 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 only material business conducted by the Note Issuer has been the acquisition of Transition Property
(which is reported as a note receivable on the financial statements); and the issuance on December 11, 1997,
of $2,463,000,000 in principal amount of the SCE Funding LLC Notes, Series 1997-1, Class A-1 through Class
A-7 (Notes), with scheduled maturities ranging from one to ten years and final maturities ranging from three
to twelve years (the Notes are scheduled to be paid in full by 2007); the receipt of amounts payable pursuant
to the Transition Property; the payment of principal and interest with respect to the Notes; and related
activities. The Notes were issued pursuant to an indenture between the Note Issuer and Bankers Trust Company
of California, N.A., (now Deutsche Bank National Trust Company), as trustee (Indenture). The Note Issuer sold
the Notes to the California Infrastructure and Economic Development Bank Special Purpose Trust SCE-1, a
Delaware business trust (Trust), which issued certificates corresponding to each class of Notes
(Certificates) in a public offering.

The Note Issuer has no employees. It has entered into a servicing agreement (Servicing Agreement) with SCE
pursuant to which SCE 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 SCE pursuant to which
SCE performs administrative and operational duties for the Note Issuer.

Transition Property

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 California Public Utilities
Commission (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 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 Indenture as required, the Servicing Agreement requires SCE, as the servicer of the Transition

Page 1


Property (Servicer), 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
15, 2006, SCE filed with the CPUC an anniversary true-up mechanism advice letter filing. The filing confirmed
that the FTA Charges then in effect for residential and small commercial customers were adequate to service
the Notes and therefore no adjustment was necessary at that time. On December 22, 2006, SCE filed with the
CPUC a routine annual true-up mechanism advice letter filing. This filing decreased the FTA Charges for
residential customers by 9.1%, from .784 cents to .713 cents per kilowatt hour, and for small commercial
customers by 9.1% from .829 cents to .754 cents per kilowatt hour, effective January 1, 2007.

In June 2002, the Servicing Agreement was amended to provide for a routine quarterly true-up adjustment
whenever, at the end of any of the first three calendar quarters of a year, the energy usage by SCE's
customers is at least 3% lower than assumed and the balance in the Collection Account (excluding the General
Subaccount) is below the required level. The purpose of the amendment was to further assure that actual
collections are not less than the amounts necessary for the purposes specified in the Note Indenture. Through
December 31, 2006, it was not necessary to file any such routine quarterly true-up adjustment.

Under the Servicing Agreement, during any period in which the Servicer does not maintain a short-term rating
of A-1 or better by Standard and Poor's or P-1 or better by Moody's Investors Service (Moody's), the Servicer
must remit to the collection account maintained with the trustee for the Notes the total payments of FTA
Charges estimated to have been received by the Servicer on a given business day within two business days
after receipt thereof by the Servicer. Because of downgrades in its short-term ratings, SCE began making such
daily remittances on January 8, 2001. SCE currently has a short-term rating of A-2 from Standard and Poor's and
P-2 from Moody's.

The Trust

The Trust was organized in November 1997 solely for the purpose of purchasing the Notes and issuing the
Certificates. It will not conduct any other material business activities.

ITEM 1A.  RISK FACTORS

Not applicable.

ITEM 1B.  UNRESOLVED STAFF COMMENTS

None.

ITEM 2.  PROPERTIES

The Note Issuer has no materially important physical properties. Its primary asset is the Transition Property
described above in Item 1 (Business).

The Trust has no materially important physical properties. Its primary assets are the Notes described above
in Item 1 (Business).

Information about collections from the Transition Property and payments in respect of the Notes is included
in the Annual Statement (Unaudited) and the Quarterly Servicer's Certificate (Unaudited) attached hereto as
Exhibits 99.1 and 99.3, respectively.

Page 2


ITEM 3.  LEGAL PROCEEDINGS

No legal proceedings affecting either the Note Issuer or the Trust occurred in 2006.

ITEM 4.  SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

Omitted with respect to the Note Issuer pursuant to Instruction I of Form 10-K.

No matters were submitted for a vote or consent of holders of the Certificates in 2006.

                                                    PART II

ITEM 5.  MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY
         SECURITIES

There is no established public trading market for the Note Issuer's equity securities. All of the Note
Issuer's equity is owned by SCE. The Note Issuer's equity securities, or membership interests, were sold to
SCE in June 1997 in exchange for an initial capital contribution of $5,000. The sale of the Note Issuer's
membership interests to SCE was exempt from registration under the Securities Act of 1933, as amended,
pursuant to Section 4(2) thereof. The Note Issuer has made no other sales of unregistered securities.

The Indenture prohibits the Note Issuer from making any distributions to the sole member from the amounts
allocated to the Note Issuer unless no default has occurred and is continuing thereunder and the book value
of the remaining equity of the Note Issuer, after giving effect to such distribution, is equal to at least
0.5% of the original principal amount of all series of Notes which remains outstanding. As of December 31,
2006, the original principal amount of all series of Notes (Class A-7) which then remained outstanding and is
scheduled for liquidation during the year 2007 is $246.3 million. On February 13, 2007, the Note Issuer made
a cash distribution of $1.5 million. There were no distributions in 2006 or 2004. In 2005, the Note
Issuer made cash distributions of $1.75 million and $1.0 million, respectively.

The registered owner for each class of the Certificates is Cede and Co., as nominee of The Depository Trust
Company (DTC). The Note Issuer and the Trust are unable to ascertain the number of beneficial holders of
Certificates. The Certificates are not registered on any national securities exchange and do not trade on any
established trading market.

ITEM 6.  SELECTED FINANCIAL DATA

Omitted pursuant to Instruction I of Form 10-K.

ITEM 7.  MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following analysis of the Note Issuer's results of operations is in an abbreviated format pursuant to
Instruction I of Form 10-K.

As discussed under Item 1 (Business), the Note Issuer was organized in June 1997 for limited purposes, and on
December 11, 1997, the Note Issuer issued Notes in order to purchase Transition Property, which is classified
as a note receivable on the financial statements included under Item 8 (Financial Statements and
Supplementary Data). As the Note Issuer is restricted by its organizational documents from engaging in
activities interest other than those described in Item 1 (Business), income statement effects were limited

Page 3


primarily to interest income generated from the note receivable related to the Transition Property, interest
expense on the Notes and incidental investment interest income.

In 2006, interest income generated from the note receivable related to the Transition Property was $26
million compared with $41 million in 2005. The decrease is due to lower outstanding balance on the note
receivable from SCE. Interest expense in 2006 was $28 million compared to $43 million in 2005. The decrease
is due to lower outstanding balances on the Notes. Interest expense includes interest on the Notes,
amortization of both debt issuance costs and the discount on the Notes.

During the twelve months ended December 31, 2006, the non-bypassable FTA Charges billed to residential and
small commercial customers totaled $268 million. Collection of FTA Charges totaled $268 million. Scheduled
distributions in 2006 were $275 million. Restricted funds in the amount of $7 million were used to support
the scheduled distributions in excess of FTA charges collected. Interest earnings on restricted and
unrestricted funds and prior period overcollections deposited to various restricted accounts are also used to
assist with making the scheduled payments on the Notes. The Notes are scheduled to be paid off in December
2007 and the nonbypassable rates being charged to customers are expected to cease as of January 1, 2008.

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, 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 legal or regulatory proceedings challenging the collection of FTA Charges or payment of
Notes or Certificates.

ITEM 7A.  QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable to the Note Issuer or the Trust.

ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

The financial statements and related financial information required to be filed hereunder appear on pages F-1
through F-6 of this report and are incorporated herein by reference. In addition, attached with respect to
the Note Issuer and the Trust as Exhibits 99.1, 99.2, and 99.3 are an Annual Statement (unaudited)
summarizing certain information with respect to collections from the Transition Property and payments on the
Notes and Certificates, an Annual Certificate of Compliance (unaudited) with respect to the Servicer's
activities, and the Quarterly Servicer's Certificate (unaudited) for the collection periods September 2006
through November 2006 (dated December 20, 2006), respectively.

ITEM 9.  CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A.  CONTROLS AND PROCEDURES

Not applicable to the Trust or the Note Issuer.

ITEM 9B.  OTHER INFORMATION

None.

Page 4


                                                   PART III

ITEM 10.  DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT AND CORPORATE GOVERNANCE

Omitted pursuant to Instruction I of Form 10-K.

ITEM 11.  EXECUTIVE COMPENSATION

Omitted pursuant to Instruction I of Form 10-K.

ITEM 12.  SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Omitted pursuant to Instruction I of Form 10-K.

ITEM 13.  CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

Omitted with respect to the Note Issuer pursuant to Instruction I of Form 10-K.

Not applicable to the Trust.

ITEM 14.  PRINCIPAL ACCOUNTING FEES AND SERVICES

Not applicable to the Trust or the Note Issuer.

                                                    PART IV

ITEM 15.  EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

(a)     The following documents are filed as part of this report:

        1.     Financial Statements.

               The following financial statements of the Note Issuer and report of independent public
               accountants are included in Item 8 (Financial Statements and Supplementary Data):

               Report of Independent Registered Public Accounting Firm
               Balance Sheets
               Statements of Operations and Changes in Member's Equity
               Statements of Cash Flows
               Notes to Financial Statements

        2.     Financial Statement Schedule.

               None.

        3.     Exhibits.

               See the Exhibit Index of this report below.


Page 5




                                                      SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) 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.

                                               SCE FUNDING LLC
                                                   as Registrant

                                               By:

                                               /s/ Thomas M. Noonan
                                               --------------------------------
                                               Thomas M. Noonan
                                               Chief Executive Officer

                                               Date:  February 28, 2006


Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the dates indicated.

                     Signature                               Title                  Date



/s/ Thomas M. Noonan                                    Director, Chief      February 28, 2007
-------------------------------------------------------Executive Officer
Thomas M. Noonan                                         and President
                                                     (Principal Executive
                                                           Officer)


/s/ George T. Tabata                                     Director, Vice       February 28, 2007
---------------------------------------------------------President and
George T. Tabata                                     Treasurer (Principal
                                                         Financial and
                                                      Accounting Officer)


/s/ Anand Maniktala                                         Director          February 28, 2007
---------------------------------------------------------------
Anand Maniktala

Page 6









                                                        Exhibit Index

   Exhibit
    Number

     3.1               Certificate of Formation (File No. 333-30785, filed as
                       Exhibit 3.1 to SCE Funding's Form S-3, dated July 3,
                       1997)*

     3.2               Limited Liability Company Agreement (File No. 333-30785,
                       filed as Exhibit 3.2 to SCE Funding's Form S-3, File No.
                       333-30785)*

     3.3               Amended and Restated Limited Liability Company Agreement
                       (File No. 333-30785, filed as Exhibit 3.3 to SCE
                       Funding's Form S-3, dated November 10, 1997)*

     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 (File No. 333-30785, filed as Exhibit
                       4.2 to SCE Funding's Form 8-K, dated December 11, 1997)*

     4.3               Note (File No. 333-30785, filed as Exhibit 4.3 to SCE
                       Funding's Form 8-K, dated December 11, 1997)*

     4.4               Amended and Restated Declaration and Agreement of Trust
                       (File No. 333-30785, filed as Exhibit 4.4 to SCE
                       Funding's Form 8-K, dated December 11, 1997)*

     4.5               First Supplemental Agreement of Trust (File No.
                       333-30785, filed as Exhibit 4.5 to SCE Funding's Form
                       8-K, dated December 11, 1997)*

     4.6               Rate Reduction Certificate (File No. 333-30785, filed as
                       Exhibit 4.6 to SCE Funding's Form 8-K, dated December 11,
                       1997)*

     10.1              Transition Property Purchase and Sale Agreement (File No.
                       333-30785, filed as Exhibit 10.1 to SCE Funding's Form
                       8-K, dated December 11, 1997)*

     10.2              Transition Property Servicing Agreement (File No.
                       333-30785, filed as Exhibit 10.2 to SCE Funding's Form
                       8-K, dated December 11, 1997)*


Page 7



     10.3              Note Purchase Agreement (File No. 333-30785, filed as
                       Exhibit 10.3 to SCE Funding's Form 8-K, dated December
                       11, 1997)*

     10.4              Fee and Indemnity Agreement (File No. 333-30785, filed as
                       Exhibit 10.4 to SCE Funding's Form 8-K, dated December
                       11, 1997)*

     10.5              Amendment to Transition Property Servicing Agreement
                       (File No. 333-30785, filed as Exhibit 10.5 to SCE
                       Funding's Annual Report on Form 10-K, dated March 28,
                       2003)*

      23               Consent of PricewaterhouseCoopers LLP

      31               Rule 13a-14(a)/15d-14(a) Certification

      32               Section 1350 Certification

     99.1              Annual Statement (Unaudited)

     99.2              Annual Certificate of Compliance (Unaudited)

     99.3              Quarterly Servicer's Certificate (Unaudited)


_____________________

    *   Incorporated by reference pursuant to Rule 12b-32.

Page 8









                            Report of Independent Registered Public Accounting Firm



To the Board of Directors and
Member of SCE Funding LLC



In our opinion, the accompanying balance sheets and the related statements of operations, changes in member's
equity and cash flows present fairly, in all material respects, the financial position of SCE Funding LLC at
December 31, 2006 and 2005, and the results of its operations and its cash flows for each of the three years
in the period ended December 31, 2006 in conformity with accounting principles generally accepted in the
United States of America. These financial statements are the responsibility of the Company's management. Our
responsibility is to express an opinion on these financial statements based on our audits. We conducted our
audits of these statements in accordance with the standards of the Public Company Accounting Oversight Board
(United States). Those standards require that we plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis for our opinion.


/s/ PricewaterhouseCoopers LLP
Los Angeles, California
February 28, 2007


Page 9











ITEM 8.  FINANCIAL STATEMENTS

                                       SCE FUNDING LLC
                                        BALANCE SHEETS
                                      As of December 31,
                                        (in thousands)

                     ASSETS                                  2006                    2005

Current Assets:
    Cash and equivalents                            $        1,868          $          879
    Restricted funds                                        55,595                  56,890
    Current portion of note receivable - net               244,428                 246,300
    Unamortized bond issuance costs                          1,824                       -
    Prepayments and other current assets                         -                       2
                                                  ---------------------------------------------
        Total Current Assets                               303,715                 304,071
                                                  ---------------------------------------------

Other Assets and Deferred Charges:
    Note receivable - net of discount                            -                 242,544
    Unamortized bond issuance costs                              -                   3,648
                                                  ---------------------------------------------
        Total Other Assets and Deferred Charges                  -                 246,192
                                                  ---------------------------------------------

                  Total Assets                      $      303,715          $      550,263
                                                  =============================================

         LIABILITIES AND MEMBER'S EQUITY

Current Liabilities:
    Interest payable                                $          219          $          438
    Current portion of long-term debt - net                246,234                 246,300
    Deferred revenue                                        16,395                  21,636
                                                  ---------------------------------------------
                                                  ---------------------------------------------
        Total Current Liabilities                          262,848                 268,374
                                                  ---------------------------------------------

Long term debt - net of discount                                 -                 246,166
                                                  ---------------------------------------------

Member's equity                                             40,867                  35,723
                                                  ---------------------------------------------

      Total Liabilities and Member's Equity         $      303,715          $      550,263
                                                  =============================================



                  The accompanying notes are an integral part of these financial statements.


Page 10



                                       SCE FUNDING LLC
                   STATEMENTS OF OPERATIONS AND CHANGES IN MEMBER'S EQUITY
                                   Year Ended December 31,
                                        (in thousands)

                                                   2006              2005             2004

OPERATING REVENUE:
   Interest income                                 $31,517             $46,087              $60,129
                                          ------------------- ------------------- -----------------
      Total Operating Revenue                       31,517              46,087               60,129
                                          ------------------- ------------------- -----------------

OPERATING EXPENSES:
   Interest expense                                 27,548              43,275               59,000
   Other expenses                                    1,157               1,899                2,376
                                          ------------------- ------------------- -----------------
      Total Operating Expenses                      28,705              45,174               61,376
                                          ------------------- ------------------- -----------------

      Net Income (Loss)                              2,812                 913               (1,247)

   Member's Equity, - beginning of year             35,723              33,612               31,293
   Capital Transfer from SCE                         2,332               1,198                3,566
                                          ------------------- ------------------- -----------------
      Member's Equity, - end of year               $40,867             $35,723              $33,612
                                          =================== =================== =================



                  The accompanying notes are an integral part of these financial statements.


Page 11



                                        SCE FUNDING LLC
                                   STATEMENTS OF CASH FLOWS
                                    Year Ended December 31,
                                        (in thousands)

                                                      2006              2005             2004

Cash flows from Operating Activities:
Net Income (Loss)                                $   2,812       $     913       $    (1,247)
Adjustments to reconcile net income (loss) to net cash
used by operating activities:
Amortizations                                            8               2                 3
Changes in working capital:
    Restricted funds                                 1,295           4,485             5,095
    Prepayments and other current assets                 2               6                (3)
    Interest payable                                  (219)           (218)             (219)
    Deferred revenue                                (5,241)         (7,422)           (6,723)
                                                ---------------------------------------------
Net Cash Used by Operating Activities               (1,343)         (2,234)           (3,094)
                                                ---------------------------------------------

Cash Flows from Financing Activities:
Payment of principal on rate reduction notes      (246,300)       (246,300)         (246,300)
Capital Transfer from SCE                            2,332           1,198             3,566
                                                --------------------------------------------
Net Cash Used by Financing Activities             (243,968)       (245,102)         (242,734)
                                                --------------------------------------------

Cash Flows from Investing Activities:
Note receivable collections from SCE               246,300         246,300           246,300
                                                --------------------------------------------
Net Cash Provided by Investing Activities          246,300         246,300           246,300
                                                --------------------------------------------

Net Increase (decrease) in cash and equivalents        989          (1,036)              472
Cash and equivalents, beginning of year                879           1,915             1,443
Cash and equivalents, end of year                $   1,868       $     879       $     1,915
                                                 -------------------------------------------

Cash payments for interest                       $  25,875       $  41,600       $    57,325
                                                 ===========================================



                  The accompanying notes are an integral part of these financial statements.


Page 12


                                                SCE FUNDING LLC
                                         NOTES TO FINANCIAL STATEMENTS
                                               DECEMBER 31, 2006

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 to retail customers in central, coastal and southern California. All
of the issued and outstanding common stock of SCE is owned by its parent holding company, Edison
International. SCE Funding LLC was formed on June 27, 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.

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.

2.  Summary of Accounting Policies

Cash Equivalents

Cash equivalents include working funds and short-term investments with initial maturities of 90 days or less.

Restricted Funds

Page 13


SCE Funding LLC is required to maintain funds of approximately 0.5% of the outstanding principal balance of
the Notes. These funds are invested in short-term securities with maturities of 90 days or less. They are to
be used to make scheduled payments on the Notes to the Trust and to pay other expenses of SCE Funding LLC in
the event that collections of the non-bypassable tariffs prove insufficient to make such payments.

Deferred Revenue

Effective January 1, 2001, because of lower credit ratings, SCE was required to begin making daily rather
than monthly remittances to the collection account maintained with the trustee for the Notes. The result is
an acceleration of cash collections. These accelerated amounts collected from SCE in excess of current
commitments are classified as deferred revenue on the financial statements. These pre-collection amounts will
be applied against SCE's future remittance obligations.

Unamortized Debt Issuance Expenses

The costs associated with the issuance of the Notes to the Trust have been capitalized and are being
amortized over the life of the Notes.

Member's Equity

Pursuant to the indenture for the Notes, SCE Funding LLC is restricted from making distributions to SCE to
the extent that such distributions would cause the book value of the remaining equity in SCE Funding LLC to
decline below 0.5 percent of the original principal amount of all series of Notes which remain outstanding.
As of December 31, 2006, the original principal amount of all series of Notes outstanding was $246.3 million.
On February 13, 2007, the Note Issuer made a cash distribution of $1.5 million. There were no distributions
in 2006 or 2004. In 2005, the Note Issuer made cash distributions of $1.75 million.

Income Taxes

SCE Funding LLC is a single-member limited liability company. Accordingly, for federal and state income tax
purposes, any income tax effect of SCE Funding LLC's activities will be reflected in SCE's financial
statements.

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the
United States of America requires management to make estimates and assumptions. These estimates and
assumptions may affect the reported amount of revenue, expenses, assets, and liabilities and disclosure of
contingencies. Actual results could differ from these estimates.


Page 14


3.  Fair Value of Financial Instruments

Due to their short maturities, amounts reported for cash equivalents and restricted funds approximate fair
value. In addition to these amounts, at December 31, 2006 and 2005, SCE Funding LLC had a financial asset
(representing its note receivable from SCE), and financial liabilities (representing its Notes due to the
Trust) each with a cost basis of approximately $244 million and $489 million, respectively. The note
receivable is carried at cost which approximates fair value. Fair value is estimated based on brokers' quotes
of notes with similar characteristics. Financial liabilities are recorded at cost, with an approximate fair
value of $246 million and $493 million at December 31, 2006 and 2005, respectively, and their fair value is
also based on brokers' quotes.

4.  Long-Term Debt

In December 1997, SCE Funding LLC issued approximately $2.5 billion of Notes to the Trust. There were
originally seven classes of Notes. The first six classes of Notes (Classes A-1 through A-6) matured in
December 1998, March 2000, 2001, and 2002, September 2003, and December 2006, respectively. The remaining
class of Notes matures in 2007, with an interest rate of 6.42%. The Notes are collateralized solely by the
Transition Property (see Note 1) and certain other assets of SCE Funding LLC, and the holders of the Notes do
not have any recourse to any assets or revenue of SCE or Edison International. For financial reporting
purposes the Transition Property is shown as a note receivable, with the same scheduled maturities and
interest rates as the Notes due to the Trust (see table below). Notwithstanding such classification of the
Transition Property, the Transition Property has been sold by SCE to SCE Funding LLC.

Principal and interest payments on the Notes are due quarterly and are paid from funds deposited with the
Trustee by SCE as servicer of the Transition Property. Because of the negative impact the California energy
crisis has had on SCE's credit ratings, effective January 2001, SCE began making daily rather than monthly
remittances to the trustee. The debt service requirements include an overcollateralization amount of
approximately $1.2 million per year, which will be retained for the benefit of the holders of the Notes. Any
amounts not required for debt service will be returned to SCE Funding LLC and ultimately to SCE. The required
annual liquidation amount of the Notes for the year 2007 is $246.3 million. Scheduled maturity and interest
rate for the Notes payable due to the Trust at December 31, 2006, are as follows:

                                    Scheduled           Interest          Amount
           Class                  Maturity Date           Rate        (in thousands)

            A-7              December 26, 2007           6.42%             246,300
                                                                    $
                          Less:  Unamortized Discount                          (66)
                                                                    ---------------
                          Current Portion of Long-Term Debt Net
                          of Discount                               $      246,234
                                                                    ===============


5.  Significant Agreements and Related Party Transactions

Under the Transition Property Servicing Agreement, SCE, the servicer, is required to manage and administer
the Transition Property of SCE Funding LLC and to collect the non-bypassable tariffs from the electricity
ratepayers on behalf of SCE Funding LLC. SCE Funding LLC shall pay an annual

Page 15


servicing fee equal to 0.25% of the outstanding principal balance of the Notes for so long as the
non-bypassable tariff is included as a line item on the bills otherwise sent to electricity ratepayers or
1.5% of the outstanding principal balance of the Notes if the non-bypassable tariff is not included as a line
item on bills otherwise sent to electricity ratepayers but, instead, is billed separately to electricity
ratepayers. SCE Funding LLC incurred a total of $1.1 million in servicing, administration and trustee fees in
2006. SCE is also entitled to receive as compensation any interest earnings on the non-bypassable tariff
collections, and any late payment charges collected from SCE's customers prior to remittance to the Trust.

The Trust was created solely for the purpose of purchasing the Notes from SCE Funding LLC, issuing the
Certificates, and applying the payments received in respect of the Notes to the payment of interest and
principal in respect of the Certificates. Under the Trust Agreement, Deutsche Bank National Trust Company,
the Certificate Trustee, is responsible for purchasing the Notes and authenticating and delivering the
Certificates to the investors. Deutsche Bank National Trust Company, the Delaware Trustee, is responsible for
the maintenance of all records that are necessary to form and maintain the existence of the Trust. All fees
and expenses of the Certificate Trustee and the Delaware Trustee are paid by SCE Funding LLC.


Page 16



F-2

                                                  EXHIBIT 23


Page 17


                           Consent of independent Registered Public Accounting Firm

We hereby consent to the incorporation by reference in the Registration Statement on Forms S-3 (No.
333-30785) of SCE Funding LLC of our report dated February 28, 2007 relating to the financial statements,
which appear in this Form 10-K.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP
Los Angeles, California
February 28, 2007



Page 18





                                                  EXHIBIT 31


Page 19


                                                 CERTIFICATION


I, THOMAS M. NOONAN, certify that:

1.  I have reviewed this annual report on Form 10-K, and all reports on Form 10-Q containing distribution or
servicing reports filed in respect of periods included in the year covered by this annual report, of SCE
Funding LLC;

2.  Based on my knowledge, the information in these reports, taken as a whole, does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make the statements made, in light
of the circumstances under which such statements were made, not misleading with respect to the period covered
by this report;

3.  Based on my knowledge, the distribution or servicing information required to be provided to the trustee by
the servicer under the pooling and servicing, or similar, agreement, for inclusion in these reports is
included in these reports; and

4.  Based on my knowledge and upon the annual compliance statement included in the report and required to be
delivered to the trustee in accordance with the terms of the pooling and servicing, or similar, agreement, and
except as disclosed in the reports, the servicer has complied with its servicing obligations and minimum
servicing standards under the servicing agreement.

In giving the certifications above, I have reasonably relied on information provided to me by Southern
California Edison Company, as servicer and depositor.

Date:  February 28, 2007
                                              /s/ THOMAS M. NOONAN
                                        ________________________________
                                                THOMAS M. NOONAN
                                            Chief Executive Officer
                                                SCE Funding LLC




Page 20


                                                 CERTIFICATION


I, GEORGE T. TABATA, certify that:

1.  I have reviewed this annual report on Form 10-K, and all reports on Form 10-Q containing distribution or
servicing reports filed in respect of periods included in the year covered by this annual report, of SCE
Funding LLC;

2.  Based on my knowledge, the information in these reports, taken as a whole, does not contain any untrue
statement of a material fact or omit to state a material fact necessary to make the statements made, in light
of the circumstances under which such statements were made, not misleading with respect to the period covered
by this report;

3.  Based on my knowledge, the distribution or servicing information required to be provided to the trustee by
the servicer under the pooling and servicing, or similar, agreement, for inclusion in these reports is
included in these reports; and

4.  Based on my knowledge and upon the annual compliance statement included in the report and required to be
delivered to the trustee in accordance with the terms of the pooling and servicing, or similar, agreement, and
except as disclosed in the reports, the servicer has complied with its servicing obligations and minimum
servicing standards under the servicing agreement.

In giving the certifications above, I have reasonably relied on information provided to me by Southern
California Edison Company, as servicer and depositor.

Date:  February 28, 2007
                                              /s/ GEORGE T. TABATA
                                        ________________________________
                                                GEORGE T. TABATA
                                     Director, Vice President and Treasurer
                                                SCE Funding LLC


Page 21


                                                  EXHIBIT 32


Page 22


                                 STATEMENT PURSUANT TO 18 U.S.C. SECTION 1350,
                          AS ENACTED BY SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002


In connection with the accompanying Annual Report on Form 10-K for the year ended December 31, 2006 (the
Annual Report) of SCE Funding LLC (the "Company"), and pursuant to 18 U.S.C. Section 1350, as enacted by
Section 906 of the Sarbanes-Oxley Act of 2002, each of the undersigned certifies, to the best of his
knowledge, that:

1.      The Annual Report fully complies with the requirements of section 13(a) or 15(d) of the Securities
           Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

2.      The information contained in the Annual Report fairly presents, in all material respects, the
           financial condition and results of operations of the Company.


                                                   /s/ Thomas M. Noonan
                                                   ---------------------------------------------------------
                                                   Thomas M. Noonan
                                                   Chief Executive Officer
                                                   SCE Funding LLC


                                                   /s/ George T. Tabata
                                                   ---------------------------------------------------------
                                                   George T. Tabata
                                                   Director, Vice President and Treasurer
                                                   SCE Funding LLC


    Date:  February 28, 2007


    This statement accompanies the Annual Report pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
    and shall not, except to the extent required by the Sarbanes-Oxley Act of 2002, be deemed filed by the
    Company for purposes of Section 18 of the Securities Exchange Act of 1934, as amended.

    A signed original of this written statement required by Section 906 has been provided to SCE Funding LLC
    and will be retained by SCE Funding LLC and furnished to the Securities and Exchange Commission or its
    staff upon request.



Page 23


                                                 EXHIBIT 99.1



Page 24



                                          SCE Funding LLC
                              Annual Summary of Monthly Certificates
                                     Year Ended December 2006
                                             Unaudited


                                                                        Small
                                                     Residential     Commercial
                                                      Customers       Customers         Total

Kilowatt hours of electricity billed                 28,983,526,767  4,932,258,752   33,915,785,519

FTA Charged per kilowatt hour (Jan.-Dec. 2006)(cents)         0.784          0.829              N/A

Billed FTA Charges                                     $227,230,850    $40,888,425     $268,119,275

Estimated FTA Payments                                 $226,094,696    $40,724,871     $266,819,567


Estimated Write-off                                      $1,136,154       $163,554       $1,299,708

Remittance Shortfall - increased payment                   $403,922        $80,841         $484,763
                                 to the Collection
Account
Excess Remittance - reduced payment                              $0             $0               $0
                                 to the Collection
Account
Net Write-off                                            $1,540,076       $244,395       $1,784,471


FTA Payments estimated to have been                    $227,147,220    $40,927,818     $268,075,038
                                received by the
Servicer
Remittance Shortfall - increased payment                   $403,922        $80,841         $484,763
                                 to the Collection
Account
Excess Remittance - reduced payment                              $0             $0               $0
                                 to the Collection
Account
Aggregate Remittance to the Collection Account         $227,551,142    $41,008,659     $268,559,801




Page 26


                                                 EXHIBIT 99.2


Page 27


                                           CERTIFICATE OF COMPLIANCE


The undersigned hereby certifies that he is the duly elected and acting Assistant Treasurer of Southern
California Edison Company, as servicer (the "Servicer") under the Transition Property Servicing Agreement
dated as of December 11, 1997 (the "Servicing Agreement") between the Servicer and SCE Funding LLC (the "Note
Issuer") and further that:

        1. A review of the activities of the Servicer and of its performance under the Servicing Agreement
           during the twelve months ended June 30, 2006 has been made under the supervision of the
           undersigned pursuant to Section 3.03 of the Servicing Agreement; and

        2. To the best of the undersigned's knowledge, based on such review, the Servicer has fulfilled all
           of its material obligations in all material respects under the Servicing Agreement throughout the
           twelve months ended June 30, 2006, except for those material defaults in the fulfillment of
           material obligations listed on Annex A hereto.

        Executed this 28th day of February, 2007.


                                    SOUTHERN CALIFORNIA EDISON COMPANY



                                    By:   /s/ George T. Tabata
                                    -------------------------------------------------------------
                                    George T. Tabata
                                    Director, Vice President and Treasurer
                                    SCE Funding LLC



Page 28



                                                    ANNEX A
                                                      TO
                                           CERTIFICATE OF COMPLIANCE

                                           LIST OF SERVICER DEFAULTS


The following material defaults known to the undersigned occurred during the twelve months ended June 30,
2006.

Nature of Default                                                Status

None



Page 29


                                                 EXHIBIT 99.3


Page 30


Page 1 of 3                                                            December 20, 2006

                                       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: September 2006 through November 2006
                                     Distribution Date: December 25, 2006

        Capitalized terms used in this Quarterly Servicer's Certificate have their respective meanings set forth in
the Transition Property Servicing Agreement.

        In WITNESS HEREOF, the undersigned has duly executed and delivered this Quarterly Servicer's Certificate this
20th day of December, 2006.

                             SOUTHERN CALIFORNIA EDISON COMPANY, as Servicer

                                    By:     /s/ Robert C. Boada
                                            ---------------------------------------------

                                    Title:  VP and Treasurer
                                            ---------------------------------------------


1.  Distribution of Principal per $1,000 of Original Principal Amount
                                                                        Principal Payment
                                                                          per $1,000 of
                                                                       Original Principal
                        Original Principal        Principal Payment          Amount
                                (A)                      (B)             (B / A x 1,000)
---------------------------------------------------------------------------------------------------------------

    a.  Class A-1       $  246,300,000.00          $         -            $         -
    b.  Class A-2          307,251,868.00                    -                      -
    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          68,644,403.00           217.95720878

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                    -                      -
    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            5,054,857.67           16.05000001


Page 31


Page 2 of 3                                                            December 20, 2006

                                       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: September 2006 through November 2006
                                     Distribution Date: December 25, 2006

3.  As of this Payment Date
    a.  Required Overcollateralization Level                                 $  11,083,500.00
    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    314,944,403.00
        ii.per Expected Amortization Schedule                                  246,300,000.00

4.  Amounts available for distribution this Payment Date:
    a.  Remittances for September 2006 Collection Period                     $  27,896,348.72
    b.  Remittances for October 2006 Collection Period                          24,464,484.72
    c.  Remittances for November 2006 Collection Period                         21,584,886.71
    d.  Net Earnings on Collection Account                                         894,030.46
    e.  General Subaccount Balance (sum of a through d above)                   74,839,750.61
    f.  Reserve Subaccount Balance                                              11,006,477.14
    g.  Overcollateralization Subaccount Balance                                10,775,625.00
    h.  Capital Subaccount Balance                                              12,215,000.00
    i.  Collection Account Balance (sum of e through h above)                  108,836,852.75

5.  Distribution of amounts remitted:
    a.  Note, Delaware, Certificate Trustee Fees                             $       1,083.33
    b.  Servicing Fees                                                             196,840.25
    c.  Quarterly Administration Fees                                               25,003.00
    d.  Operating Expenses (up to a maximum of $100,000.00)                         10,672.95
    e.  Quarterly Interest                                                       5,054,857.67
    f.  Principal Due and Payable                                                           -
    g.  Quarterly Principal                                                     68,644,403.00
    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            599,015.41
    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                                                                $   74,839,750.61
                                                                             -----------------

6.  For this Payment Date
    a.  Withdrawal, if any, from Reserve Subaccount
        (including $128,990.36 in net earnings)                                 $128,990.36
    b.  Withdrawal, if any, from Overcollateralization Subaccount
        (including $139,966.04 in net earnings)                                  139,966.04
    c.  Withdrawal, if any, from Capital Subaccount
        (including $159,989.90 in net earnings)                                  159,989.90



Page 32


Page 3 of 3                                                            December 20, 2006

                                       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: September 2006 through November 2006
                                     Distribution Date: December 25, 2006

7.  For this Payment Date
    a.  Current Payment Date                December 25, 2006
    b.  Prior Payment Date*                 September 25, 2006
    c.  30/360 Days in Interest Accrual Period (a-b)       90

8.  Interest due and payable as of this Payment Date

                     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
---------------------------------------------------------------------------------------------------------------------

    a.  Class A-1     $           -          5.98%          $         -          $       -
    b.  Class A-2                 -          6.14%                    -                  -
    c.  Class A-3                 -          6.17%                    -                  -
    d.  Class A-4                 -          6.22%                    -                  -
    e.  Class A-5                 -          6.28%                    -                  -
    f.  Class A-6                 -          6.38%                    -                             -
    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                 -                -                  -                  -
    c.  Class A-3                 -                -                  -                  -
    d.  Class A-4                 -                -                  -                  -
    e.  Class A-5                 -                -                  -                  -
    f.  Class A-6                 -                -                  -                  -
    g.  Class A-7       314,944,403.00         68,644,403.00    246,300,000.00           -
                                                                --------------
                                                   Total       $246,300,000.00
                                                                --------------
        Projected outstanding balance of Series 1997-1         $246,300,000.00
                                                                --------------

10. Ending balance this Payment Date:
    a.  Reserve Subaccount                $11,006,477.14
    b.  Overcollateralization Subaccount   11,083,500.00
    c.  Capital Subaccount                 12,215,000.00

* or Series Issuance Date in the case of the first payment date.`