Business: SCE Trust VII 7.50% Trust Preference Securities Securities, liquidation amount $25 per share, guaranteed by Southern California Edison Company (NYSE: EIX) (See our definition of Guaranteed in our Glossary of Income Investing Terms for the technicalities of the guarantee), redeemable at the issuer's option on or after 11/22/2028 at $25 per share plus accrued and unpaid dividends, and with no stated maturity. <p> Cumulative distributions of 7.50% per annum ($1.875 per annum or $0.46875 per quarter) will be paid quarterly on 3/15, 6/15, 9/15 & 12/15 to holders of record on the record date which will be one business day prior to the payment date while the securities remain in book-entry form (NOTE: the ex-dividend date is one business day prior to the record date). <p> Dividends paid by this preferred security are eligible for the preferential income tax rate of 15% to a maximum of 20% depending on the holder's tax bracket (and under IRS specified holding restrictions) and are also eligible for the dividends received deduction for corporate holders (see page 41 of the prospectus for further information). <p> The Company may redeem the Depositary Shares before 11/22/2028 at $25.25 (101%) of their principal amount plus accrued and unpaid dividends, if a Tax event occurs; before 11/22/2023 at $25.50 (102%) of their principal amount plus accrued and unpaid dividends if a rating agency event occurs. (see prospectus for further information). <p> The trust's assets consist of the Southern California Edison Company Series M Preference Stock which were purchased from the company using the funds generated from the sale of the trust preferred securities.<p> This security was rated as Baa3 by Moody’s and BB+ by S&P at the date of its IPO. This security was rated as BBB- -by Fitch Ratings Co at the date of its IPO. In regard to the payment of distributions and upon liquidation, the preference shares rank junior to the shares company's senior debt and preferreds shares of the company, equally with other preference shares of the company and senior to the common shares of the company. See the IPO prospectus for further information on the preferred stock by clicking on the ‘Link to IPO Prospectus’ provided below.