The line, which is designed to connect projects such as the upcoming 3GW Alta Wind Energy Center, has been stopped by the California Public Utilities Commission (CPUC).
SCE will need to look at alternative routes for the line, which will be able to carry 4.5GW on completion. It is set to become fully operational in 2013.
The CPUC issued the order following an application from the City of Chino Hills, which wants the line rerouted.
Speaking about the decision, CPUC president Michael Peevey said: "The CPUC has heard from many Chino Hills residents who are unhappy with the transmission towers and lines running through their city and in extremely close proximity to homes
"I have visited Chino Hills and seen the construction firsthand. I want to make sure we do all we can to address the concerns of the residents while balancing environmental impacts and cost needs of the state and SCE's ratepayers, and achieving the state's statutory requirement of 33% renewables by 2020."
Work initially started on the Tehachapi transmission line back in 2008. It aims is to enable the development of as much as 4.5GW of wind capacity in the Tehachapi Pass wind resource area and connect it with the major load centres of southern California.