MOU UPDATE

For those of you who don't already know, the Senate passed its version of
the SCE MOU, SBX2 78 (Polanco/Sher) which requires users over 500 kw to foot
the bill for SCE's entire undercollection and it eliminates DA completely.
This largely represents TURN's proposal. The Senate also passed a budget
and has since adjourned until August 20.

The Assembly had been considering two MOUs, ABX 82 (Keeley) and ABX 50
(Wright). Both bills had difficulty attracting a majority of votes given
their different approaches to dealing with SCE. ABX 82 for example, had
large users picking up most of the tab for SCE's undercollection whereas ABX
50 split those charges among all users. Both bills provided for some type
of direct access and ABX 82 also provided for a purchase of the transmission
system. In light of the difficulty in passing either bill, it appears as if
the Assembly will shelve both proposals today in order to amend SBX 78 over
the summer break. An internal legislative working group may be formed to
draft amendments but this has not been confirmed. Large users have begun
drafting extensive amendments recognizing that in its current form SBX 78
has very little to offer.

The Assembly will try to pass the final portion of the budget today and
recess until August 20.