                                       UNITED STATES
                             SECURITIES AND EXCHANGE COMMISSION
                                   Washington, D.C. 20549
                                     _________________


                                         FORM 10-Q

                  THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN GENERAL
INSTRUCTION H(1)(a) AND (b) OF FORM 10-Q AND IS THEREFORE FILING THIS FORM WITH THE REDUCED
                                     DISCLOSURE FORMAT.

(Mark One)
|X|   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2007

                                             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


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 whether the registrant is a large  accelerated  filer, an accelerated
filer, or non-accelerated  filer. See definition of "accelerated filer and large accelerated
filer" in Rule 12b-2 of the Exchange Act.
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|


Page i


                                PART I-FINANCIAL INFORMATION

Item 1.  Financial Statements

                                      SCE FUNDING LLC
                                       BALANCE SHEETS
                                       (in thousands)

                                             March 31,    December 31,
                                               2007           2006
                                           (Unaudited)

                      ASSETS

Current Assets:

      Cash and equivalents                $    955          $   1,868

      Restricted funds                      53,362             55,595
      Current portion of note
      receivable - net                     182,791            244,428

      Unamortized bond issuance costs        1,368              1,824

      Prepayments and other current
      assets                                    19                  -
                                          ---------------------------
         Total Current Assets             $238,495            303,715
                                          ---------------------------


      Total Assets                        $238,495           $303,715
                                          ===========================


     LIABILITIES AND MEMBER'S EQUITY

Current Liabilities:

      Interest payable                    $    164           $    219
      Current portion of long-term
      debt -- net                          184,145            246,234

      Deferred revenue                      13,453             16,395
                                          ---------------------------

         Total Current Liabilities         197,762            262,848
                                          ---------------------------


Member's equity                             40,733             40,867
                                          ---------------------------

      Total Liabilities and Member's
      Equity                              $238,495           $303,715
                                          ===========================



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


Page 1



                                      SCE FUNDING LLC
                  STATEMENTS OF OPERATIONS AND CHANGES IN MEMBER'S EQUITY
                                        (Unaudited)
                                       (in thousands)


                                           3 Months Ended
                                              March 31,
                                       -----------------------
                                          2007        2006


OPERATING REVENUE:

       Interest income                 $  5,438       $  9,188
                                       -----------------------

          Total Operating Revenue      $  5,438       $  9,188
                                       -----------------------


OPERATING EXPENSES:

       Interest expense                   4,370          7,833

       Other expenses                       187            829
                                       -----------------------

          Total Operating Expenses        4,557          8,662
                                       -----------------------


          Net Income                        881            526

       Member's Equity, beginning
       of period                         40,867         35,723
       Capital Transfer (to) / from
       SCE                               (1,015)           638
                                       -----------------------
          Member's Equity, end of
          period                       $ 40,733      $  36,887
                                       =======================



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


Page 2


                               SCE FUNDING LLC
                            STATEMENTS OF CASH FLOWS
                                  (Unaudited)
                                 (in thousands)

                                                   3 Months Ended
                                                      March 31,
                                              ------------------------
                                                 2007          2006
                                              ------------  ----------

Cash Flows from Operating Activities:

Net Income                                    $      881   $      526
Adjustments to reconcile net income to
net cash provided (used) by operating
activities:

Amortizations                                          5            1
Changes in working capital:
    Restricted funds                               2,233        6,533
    Prepayments and other current assets             (19)         (18)
    Interest payable                                 (55)         (55)
    Deferred revenue                              (2,943)      (7,639)
                                              -----------  ----------
Net Cash Provided (Used) by Operating
Activities                                           102         (652)
                                              -----------  ----------

Cash Flows from Financing Activities:
     Payment of principal on rate
reduction notes                                  (62,105)     (62,138)
     Capital Transfer (to) / from SCE             (1,015)         638
                                              -----------  ------------
Net Cash Used by Financing Activities            (63,120)     (61,500)
                                              -----------  ------------

Cash Flows from Investing Activities:
     Note receivable collections from SCE         62,105       62,138
                                              -----------  ------------
Net Cash Provided by Investing Activities         62,105       62,138
                                              -----------  ------------

Net decrease in cash and equivalents                (913)         (14)
Cash and equivalents, beginning of period          1,868          879
                                              -----------  ------------
Cash and equivalents, end of period           $      955  $       865
                                              ===========  ============

Cash payments for interest                    $    3,953  $     7,888
                                              -----------  ------------



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


Page 3


SCE FUNDING LLC

NOTES TO FINANCIAL STATEMENTS


      In the opinion of management, all adjustments have been made that are necessary to
present a fair statement of the financial position and results of operations for the
periods covered by this report.

      SCE Funding LLC's significant accounting policies were described in Note 2 of "Notes
to Financial Statements" included in its Annual Report on Form 10-K for the fiscal year
ended December 31, 2006, filed with the Securities and Exchange Commission. SCE Funding LLC
follows the same accounting policies for interim reporting purposes. Results of operations
for the interim periods are not necessarily indicative of results to be expected for a full
year. This quarterly report should be read in conjunction with SCE Funding LLC's 2006
Annual Report on Form 10-K.

Note 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. All of the
issued and outstanding common stock of SCE is owned by its parent holding company, Edison
International. SCE Funding LLC was organized in June 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


Page 4


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.

Item 2.  Management's Discussion and Analysis of Financial Condition and Results of
Operations.

      The following analysis of the Note Issuer's financial condition and results of
operations is in an abbreviated format pursuant to Instruction H of Form 10-Q. Such
analysis should be read in conjunction with the Financial Statements included herein, and
the Financial Statements and Notes to the Financial Statements included in SCE Funding
LLC's 2006 Annual Report on Form 10-K.

      The Note Issuer is a special purpose, single member limited liability company
organized in June 1997 for the limited purposes of owning the Transition Property (as
described below) and issuing notes secured primarily by the Transition Property. SCE is the
sole member of the Note Issuer. 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 Note Issuer issued $2,463,000,000 in principal amount of the Notes in December
1997 with scheduled maturities ranging from 1 to 10 years and final maturities ranging from
3 to 12 years, pursuant to an indenture with Deutsche Bank National Trust Company (formerly
Bankers Trust Company of California, N.A.), as trustee (Note Indenture). The Note Issuer
also entered into a servicing agreement (Servicing Agreement) with SCE that requires SCE to
service the Transition Property on behalf of the Note Issuer.

      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 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 Note 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


Page 5


fund certain accounts established pursuant to the Note Indenture as required,
the Servicing Agreement requires SCE, as the Servicer of the Transition Property 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 projected 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
March 31, 2007, 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 & Poor's or P-1 or better by
Moody's Investors Service, 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 short-term ratings of A-2 from
Standard and Poor's and P-2 from Moody's.

      The Note Issuer is limited by its organizational documents from engaging in any
activities other than owning the Transition Property, issuing notes secured by the
Transition Property and other limited collateral, and activities related thereto.
Accordingly, income statement effects are limited primarily to income generated from the
Transition Property, interest expense on the Notes, servicing fees to SCE, and incidental
investment interest income. During the three month period ended March 31, 2007, income
generated from the Transition Property was $5 million compared to $9 million for the same
period in 2006. The decrease is due to a lower outstanding note receivable from SCE.
Interest expense for the three months ended March 31, 2007 was $4 million compared to $8
million for the same period in 2006. The decrease is due to a lower outstanding balance of
the Notes. Interest expense includes interest on the Notes, amortization of debt issuance
costs and the discount on the notes.

      The Note Issuer uses collections with respect to the Transition Property to make
scheduled principal and interest payments on the Notes. Interest income earned on the
Transition Property is expected to offset (1) interest expense on the Notes, (2)
amortization of debt issuance


Page 6


costs and the discount on the Notes, and (3) the fees charged by SCE for servicing the
Transition Property and providing administrative services to the Note Issuer.

      Attached as Exhibit 99 is the Quarterly Servicer's Certificate for the collection
period December 2006 through February 2007 (dated March 14, 2007), delivered pursuant to
the Note Indenture, which includes information relating to the collections and
distributions of the FTA Charges, and the balances in the reserve subaccounts under the
Note Indenture. As noted therein on page 2 line 4e, collections of FTA Charges and interest
earnings thereon (the General Subaccount Balance) totaled $63 million and were sufficient
to pay 95% of all scheduled distributions and related expenses on the Notes.

Forward-looking Information

      In the preceding Management's Discussion and Analysis of Financial Condition and
Results of Operations, and elsewhere in this quarterly report, there are "forward-looking
statements" within the meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements reflect the Note Issuer's current expectations and projections
about future events based on its knowledge of present facts and assumptions about future
events and include any statement that does not directly relate to a historical or current
fact. In this report, the words "could," "estimates," "expects," "projects," "will,"
"should," and variations of such words and similar expressions, or discussions of strategy
or of plans, are intended to identify forward-looking statements. Such statements
necessarily involve risks and uncertainties that could cause actual results to differ
materially from those anticipated. Some of the risks and uncertainties that could cause
actual results to differ materially or otherwise affect the Note Issuer are the
commencement and outcome of voter initiatives and legal or regulatory proceedings
challenging the collection of FTA Charges or payment of the Notes or Certificates. The
information contained in this report is subject to change without notice. Forward-looking
statements speak only as of the date they are made and the Note Issuer is not obligated to
publicly update or revise forward-looking statements. Readers should review future reports
filed by the Note Issuer with the Securities and Exchange Commission.

Item 3.  Quantitative and Qualitative Disclosures About Market Risk.

      Omitted with respect to the Note Issuer pursuant to Instruction H of Form 10-Q.

Item 4.  Controls and Procedures

      SCE Funding LLC's management, under the supervision and with the participation of the
company's Chief Executive Officer and Director, Vice President and Treasurer, has evaluated
the effectiveness of SCE Funding LLC's disclosure controls and procedures (as that term is
defined in Rules 13a-15(e) or 15d-15(e) under the Securities Exchange Act of 1934, as
amended (the Exchange Act)) as of the end of the period covered by this report. Based on
that evaluation, the Chief Executive Officer and Director, Vice President and Treasurer
have concluded that, as of the end of the period, SCE Funding LLC's disclosure controls and
procedures are effective.


Page 7


                                          PART II

Item 1.  Legal Proceedings.


      Omitted because there are no reportable proceedings.


Item 2.  Changes in Securities and Use of Proceeds.

      Omitted with respect to the Note Issuer pursuant to Instruction H of Form 10-Q.


Item 3.  Defaults Upon Senior Securities.

      Omitted with respect to the Note Issuer pursuant to Instruction H of Form 10-Q.


Item 4.  Submission of Matters to a Vote of Security Holders.

      Omitted with respect to the Note Issuer pursuant to Instruction H of Form 10-Q.


Item 5.  Other Information.

      Attached, with respect to the Note Issuer and the Trust, as Exhibit 99 is the
Quarterly Servicer's Certificate for the collection period December 2006 through February
2007 (dated March 14, 2007), delivered pursuant to the Note Indenture, which includes
information relating to the collections and distributions of the FTA Charges and the
balances in the reserve subaccounts under the Note Indenture.

Item 6.  Exhibits.

      (a)   See the Exhibit Index of this report below.


Page 9


                                         SIGNATURES

            Pursuant to the requirements 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.

Dated:  May 9, 2007                    SCE FUNDING LLC
                                       as Registrant


                                       By       /s/ Thomas M. Noonan
                                       -----------------------------------------
                                       Name:    Thomas M. Noonan
                                       Title:   Chief Executive Officer


Page 10


Item 6.  Exhibit Index

           SCE Funding LLC

     32            Statement Pursuant to 18 U.S.C. 1350

     99            Quarterly Servicer's Certificate (Unaudited)


Page 11
SCE FUNDING LLC 10-Q
