Enron Mail

From:bruno.gaillard@enron.com
To:edward.hamb@enron.com, jennifer.rudolph@enron.com, chris.hendrix@enron.com,greg.cordell@enron.com, harold.buchanan@enron.com, martin.wenzel@enron.com, douglas.condon@enron.com, james.wood@enron.com, gary.mirich@enron.com, dennis.benevides@enron.com,
Subject:SDG&E Rate Cap
Cc:maureen.mcvicker@enron.com, ginger.dernehl@enron.com
Bcc:maureen.mcvicker@enron.com, ginger.dernehl@enron.com
Date:Mon, 21 Aug 2000 10:45:00 -0700 (PDT)

Duque's Decision passed 3-2 (Duque, Neeper, Bilas - Lynch, Wood) - Both
Neeper and Bilas said that they were only voting for this decision because of
pressure. They both felt that last meeting's decision provided sufficient
relief and provided for a investigation to address longer term problems.

Summary:

The Decision institutes a rate stabilization for residential and commercial
customers
Residential: $68 through 1/1/01 and $75 through 12/31/01 for those who
consume 500kW or less - market prices for the others residential
Commercial: $220 through 1/1/01 and $240 through 12/31/01 for those who
consume 1500 kW or less - market place for other commercial

Other rate schedules: Subject to market prices

Implementation date: Retroactive to 6/1/00 - SDG&E will provide a credit for
those customers that are eligible no latter than September 30th

The decision intends to allow for future adjustment of the kWh rate caps
retroactive to June 1, 200 to ensure that customers in hotter inland regions
have an appropriate level of usage cap and medium size commercial customers
are provided relief.

The bill stabilization plan requires SDG&E to file comments, by September 30,
addressing the implementation and transition of a Levelized Payment Plan
(LPP) for all customers on an "opt out" basis. However, the procedure for the
implementation of the LLP will allow customers to readily exercise choice,
while those that do not exercise choice will default into the LPP.

The Commission will also further study the bill stabilization plan as to
direct access customers.

Revenue shortfalls are to be booked into the TCBA for future recovery of the
net shortfall.

Discussion:
Senator Alpert, Assembly Women Davis, Mayor Golding , the former mayor,
several members of the City and County of San Diego Board of Supervisors made
a public appearance. All thanked the Commission for having this special
session. All supported the Wood decision. All stated that it did not go far
enough and insisted that all customers should be subject to the cap. Assembly
Women Davis stated that she would be going back to the legislation to pass
the Davis/Alpert Bill establishing a cap for all customers. However,
Asseblymember Wright, chairman of the Utilities and Commerce Committee, has
been open and has shown opposition to the Alpert/Davis bill.

If you have any questions, please call me at 415-782-7810

Bruno Gaillard - Government Affairs