PROPOSED COALITION LANGUAGE TO FIX ABX 1

A Coalition of Energy Service Providers (including Enron's retail coalition
-- Alliance for Retail Energy Markets) and customer groups (including some of
Enron's large customers) have prepared this language and submitted it to
Senator Debra Bowen.

Strike the last two sentences of Section 80110 that currently reads:

Insert the following language at the end of Section 80110:

The commission shall implement subscription protocols for the power supplied
by the department in accordance with the following:
a) The right of residential and small commercial customers to elect an
alternate provider for retail service shall not be restricted by this section.
b) The right of large commercial and industrial customers to elect service
from an alternate provider for retail service shall not be limited until such
time as the department has fully satisfied the net short position of the
respective electrical corporation with long-term contracts. The department
shall provide public notice when the department has fully satisfied the net
short position of an electrical corporation. This event shall be deemed to
be the close of the initial subscription period for the applicable electrical
corporation.
c) If, after the initial subscription period has closed, a large commercial
or industrial customer elects to leave the department service, the department
may impose a fee equal to the incremental costs imposed on the portfolio that
are directly related to the load of the departing customer.
d) Upon conclusion of the initial subscription period, the department shall
notify all large commercial and industrial customers no less than six months
in advance of the lapse of any long-term contract. Upon such notice large
commercial and industrial customers shall have the right to elect an
alternate provider without being subject to the surcharge set forth in
sub-section ©. This event shall be deemed to be an open subscription
period and shall remain in effect until such time as the aggregated demand of
all customers electing an alternative provider exceeds the capacity of the
lapsing contract. This event shall be deemed to be an open subscription
period.
e) If a large commercial or industrial customer requests service from the
department after the initial subscription period or outside of an open
subscription period, the department may impose a fee equal to the incremental
costs imposed on the portfolio that are directly related to the load of the
returning customer, taking into account prospects for load growth in its
customer base, compared to the total value of the portfolio of energy used to
serve the customer.
f) Customers that have elected to take service from the department after the
initial subscription period or outside of an open subscription period shall
be required to take service from the department for a minimum of one year.
g) Any new customer to the service territory of an electrical corporation
shall have the opportunity to elect service from the department without being
subject to sub-section (e).
h) Any new customer shall have the opportunity to elect service from an
alternative provider during the first 120 days from the date of service
initiation without being subject to sub-section ©.
i) For purposes of this section, residential and small commercial customers
shall be defined as customers with demands less than 100 kW.
j) For purposes of this section, commercial and industrial customers shall be
defined as customers with demands equal to or greater than 100 kW.
k) For purposes of this section, a long-term contract shall be defined as a
contract for energy greater than or equal to one-year in length.
l) For purposes of this section, incremental costs shall be defined as the
costs that the department cannot reasonably avoid until such time as one or
more long-term contracts expire