
Date: Thu, 10 May 2001 06:16:00 -0700 (PDT)
From: harry.kingerski@enron.com
To: wanda.curry@enron.com, james.lewis@enron.com, mike.smith@enron.com,
don.black@enron.com, scott.stoness@enron.com,
diann.huddleson@enron.com, jklauber@llgm.com, vicki.sharp@enron.com,
marcus.dotson@enron.com
Subject: Rate design for 3 cent Rate increase for PGE/SCE
Cc: james.steffes@enron.com, leslie.lawner@enron.com, susan.mara@enron.com,
jeff.dasovich@enron.com, sandra.mccubbin@enron.com,
paul.kaufman@enron.com, robert.neustaedter@enron.com,
richard.shapiro@enron.com
Bcc: james.steffes@enron.com, leslie.lawner@enron.com, susan.mara@enron.com,
jeff.dasovich@enron.com, sandra.mccubbin@enron.com,
paul.kaufman@enron.com, robert.neustaedter@enron.com,
richard.shapiro@enron.com

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.
