Proposed Decisions - Rate design for 3 cent Rate increase for

Cc: harry.kingerski@enron.com, richard.shapiro@enron.com, steven.kean@enron.com
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
Bcc: harry.kingerski@enron.com, richard.shapiro@enron.com, steven.kean@enron.com
X-From: James D Steffes
X-To: Janet R Dietrich, David W Delainey, Marty Sunde, Dan Leff
X-cc: Harry Kingerski, Richard Shapiro, Steven J Kean
X-bcc:
X-Folder: \Steven_Kean_June2001_4\Notes Folders\Discussion threads
X-Origin: KEAN-S
X-FileName: skean.nsf

Attached is a short note from Harry K. on the proposed decisions. Final
decision next week. Good news in that not all surcharge was put on Summer
On-peak.

Will keep you informed of final decision.

Jim

---------------------- Forwarded by James D Steffes/NA/Enron on 05/11/2001
07:59 AM ---------------------------
From: Harry Kingerski on 05/10/2001 02:31 PM
To: Harry Kingerski/NA/Enron@Enron
cc: Diann Huddleson/HOU/EES@EES, Don Black/HOU/EES@EES, James D
Steffes/NA/Enron@ENRON, James W Lewis/HOU/EES@EES, Jeff
Dasovich/NA/Enron@ENRON, jklauber@llgm.com, Leslie Lawner/NA/Enron@ENRON,
Marcus Dotson/HOU/EES@EES, Mike D Smith/HOU/EES@EES, Paul
Kaufman/Enron@EnronXGate, Richard Shapiro/NA/Enron@ENRON, Robert
Neustaedter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sandra
McCubbin/NA/Enron@ENRON, Scott Stoness/HOU/EES@EES, Susan J
Mara/NA/Enron@ENRON, Vicki Sharp/HOU/EES@EES, Wanda Curry/HOU/EES@EES

Subject: Re: Rate design for 3 cent Rate increase for PGE/SCE

CORRECTION - last line, Monday, May 14

Harry Kingerski
05/10/2001 01:16 PM

To: Wanda Curry/HOU/EES, James W Lewis/HOU/EES, Mike D Smith/HOU/EES, Don
Black/HOU/EES, Scott Stoness/HOU/EES, Diann Huddleson/HOU/EES,
jklauber@llgm.com, Vicki Sharp/HOU/EES, Marcus Dotson/HOU/EES
cc: James D Steffes/NA/Enron@Enron, Leslie Lawner/NA/Enron@Enron, Susan J
Mara/NA/Enron@ENRON, Jeff Dasovich/NA/Enron@Enron, Sandra
McCubbin/NA/Enron@Enron, Paul Kaufman/Enron@EnronXGate, Robert
Neustaedter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Richard
Shapiro/NA/Enron@Enron
Subject: Rate design for 3 cent Rate increase for PGE/SCE

2 proposed decisions were released last night by the California PUC - one by
the Judge and one by Chairman Lynch.

Direct access customers are exempt from the surcharge.
Each customer class is allocated an equal 3 cents, plus an amount to cover
the shortfall from having residential usage up to 130% of baseline exempt
from the surcharge (as required by law). Each decision allocates a
substantial portion of the subsidy to non-residential classes, although Lynch
does this to a lesser extent
The new rates become effective June 1, and the shortfall from the actual
effective date of the increase, March 27, through June 1 will be amortized
over 12 months.
Residential rate design - 5 tiers will be put in place; the 5th tier (300+%
of baseline) gets a 35 cent per kwh rate
Non-residential rate design - recommendations to put all of the increase into
summer on-peak were rejected. About 60% of increase put into summer.
Real Time Pricing was endorsed - will further explore in workshops starting
later in May. Voluntary program will be started.
In a vindictive outlash, Lynch decision requires federal facilities to pay
market prices under new schedules to be developed by the utilities
Judge's decision seems to require surcharge to show up as a separate line
item; Lynch's decision requires that it not be shown separately

Oral argument occurs Friday and final decision is expected to be voted out
Monday, June 14.