So Cal Ed dumps controversial power line in Arizona

LOS ANGELES, May 15 (Reuters) - Southern California Edison said on Friday it would not seek a license to build the Arizona portion of the controversial Devers-Palo Verde No. 2 high-voltage power transmission line at this time.

The electric utility subsidiary of Edison International (EIX.N) said it would still construct the California portion of the line.

The proposed 270-mile, 500-kilovolt line prompted a battle between California and Arizona utility regulators. Arizona's regulators rejected the proposed line in May 2007 after California regulators approved it in January 2007.

Arizona regulators said they didn't want to export so much power to California.

Previous cost estimates of the full 270 miles of the line in both California and Arizona was between $600 million and $700 million.

The U.S. Federal Energy Regulatory Commission had been considering whether to allow the construction of the line. SCE said it would now stop pre-filing for the project with FERC.

The Arizona portion of the line would have gone from Blythe, California, to the Palo Verde Nuclear Generating Station, the biggest nuclear power plant in the country, which is about 50 miles west of Phoenix.

The California portion of the line that SCE still plans to build runs from near Palm Springs to Blythe. SCE said it will have to file an amended plan with the California Public Utilities Commission.

SCE is a 15.8 percent owner of Palo Verde and its 4,020 megawatts of power production.