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Enron Mail |
The events described below represent what has happened today. The situation=
=20 is in constant flux. However, we need to know our position in case any of t= he=20 bellow does occurred. =20 Scott Baugh, Republican Assembly Leader, had a press conference in which th= e=20 republicans declared that: They accept Duque's Decision as is.=20 They are going to, request a special legislative session starting September= 1 The legislative session is going to look into supplementing focusing on=20 granting the Governor emergency power for supply side issues and streamlini= ng=20 sitting. Furthermore, they will propose to provide relief in addition to=20 Duque's decision, by providing an extra $300 MM, retroactive to June 1,=20 2000, to schools, hospitals and local government in the form of a tax cred= it=20 or cut and from the general fund. =20 They do not support the Davis/Alpert Bill (SDG&E Rate Freeze). (However, th= e=20 San Diego Republicans will probably vote for it). This also seems to take some wind out of the Pescetti bill (Freeze Extensio= n). This seems to be a political play. We do not believe that the republicans= =20 think that the Governor will actually declare a special session. The Alpert= =20 bill will most likely be heard tomorrow. We do not know in which form and= =20 whether or not it will be amended. There also is a current rumor that a new bill may be introduce that would p= ut=20 the Wood Draft Decision into a bill. Our comments on the Wood decision focu= s=20 mostly on the recovery mechanism, limiting the application of the cap to=20 bundled customerrs, and insuring that only those that benefited from the ca= p=20 paid for the costs associated with the cap. Attached is a brief summary of Woods proposal. caps the energy component of bills for residential, small commercial and=20 street lighting customers at 6.5 cents/kwh creates a balancing account to ensure that SDG&E is "made whole" uses all revenues generated by SDG&E-owned or managed assets (e.g. qualifyi= ng=20 facilities, San Onofre Nuclear Generating Station, bilateral and interutili= ty=20 contracts) to finance the cap (large customers likely to feel cheated by th= is=20 provision) offers large customers a voluntary "bill smoothing" option (but no caps) states that purchases made by SDG&E from the PX are no longer per se=20 reasonable and indicates that the Commission will investigate SDG&E=01,s pa= st=20 procurement practices (seems to counter previous promises of keeping SDG&E= =20 =01&whole=018) goes through December 2003 Please provide comments as to our position on Wood's proposal
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