Enron Mail

From:rcavanagh@nrdc.org
To:eke@aelaw.com, kmccrea@sablaw.com, jdasovic@enron.com, wbooth@booth-law.com,cohnap@sce.com, smutny@iepa.com, dhunter@smithandkempton.com, athomas@newenergy.com, cmcintyre@sempra.com, fieldejr@sce.com, braun@cmua.org, jeflory@calpx.com, brbarkovich@ear
Subject:Re:Revised Outline
Cc:scarter@nrdc.org
Bcc:scarter@nrdc.org
Date:Thu, 14 Dec 2000 21:11:00 -0800 (PST)

I remain a supporter of this joint effort but a victim of impossible schedule
conflicts, so I'm enlarging briefly on my last note in response to the latest
draft. In principle, NRDC can support rate stabilization proposals that
include
a stable commodity charge, but we (and others) will have huge problems with
proposals that are structured as a frozen bundled rate that includes
distribution costs. When you do the latter, you tie distribution revenue
recovery directly to throughput over the wires, ensuring that both energy
efficiency and on-site distributed resources will reduce distribution-revenue
recovery (and that a lack of both will have the opposite effect). While I
know
not all on this list share our objective of breaking this "throughput
addiction"
for distribution companies, there is no reason to prejudge the issue in the
proposal from this group.