Re: Senate passes Alper/Davis Bill 30-0

This is the e-mail I was talking about.
---------------------- Forwarded by Steven J Kean/NA/Enron on 08/31/2000
05:41 PM ---------------------------

James M Wood@EES
08/30/2000 09:11 AM
To: Mona L Petrochko/SFO/EES@EES
cc: Douglas Condon/SFO/EES@EES, Martin Wenzel/SFO/HOU/EES@EES, Dennis
Benevides/HOU/EES@EES, Greg Cordell/HOU/EES@EES, Roger Yang/SFO/EES@EES,
Edward Hamb/HOU/EES@EES, Peggy Mahoney/HOU/EES@EES, Karen Denne@Enron, Mark
Palmer/Corp/Enron@ENRON, James D Steffes/HOU/EES@EES, Richard
Shapiro/HOU/EES@EES, Steven J Kean/NA/Enron@Enron, Mary Hain@Enron

Subject: Re: Senate passes Alper/Davis Bill 30-0

Mona, If you can get the opt-in removed it would be a great benefit to our
effort. 6.5 cents is well below market at this point and we can not compete
against it. I understand there is a true-up but do we know how this will
work? Given the lack market intelligence I would suspect customers will
opt-in just because the price cap is lower than offers in the market.
Please, do everything possible to remove this opt-in. Thanks

Mona L Petrochko
08/29/2000 04:38 PM
To: Douglas Condon/SFO/EES@EES, Martin Wenzel/SFO/HOU/EES@EES, James M
Wood/HOU/EES@EES, Dennis Benevides/HOU/EES@EES, Greg Cordell, Roger Yang,
Edward Hamb/HOU/EES@EES, Peggy Mahoney/HOU/EES@EES, Karen Denne@Enron, Mark
Palmer/Corp/Enron@ENRON
cc: James D Steffes/HOU/EES@EES, West GA, Richard Shapiro/HOU/EES@EES, Steven
J Kean/NA/Enron@Enron, Mary Hain@Enron
Subject: Senate passes Alper/Davis Bill 30-0

AB 265 passed through the Senate a few minutes ago. It now must go to the
Assembly, where there is still a lot of uncertainty about what changes the
Assembly will want to the bill. We still haven't seen the latest
"republican" language.

Also, AB 265 is double joined to AB 970, controversial siting bill. To the
extent one or the other fails, they both fail.

AB 265 (Davis/Alpert) has:

1. a 6.5 cent/kWh energy rate cap through 2002, with potential extension
through 2003.
2. Applicable to residential, small commercial (up to 100 kW)
3. Opt-in provision for large industrial/agricultural customers at 6.5 cents
with an annual true-up
4. Use of revenues from utility generation assets (including PPA) to offset
undercollections.
5. Reasonableness review for San Diego G&E

Will update with more information as available.

No news about SCE.