---------------------- Forwarded by Jennifer Rudolph/HOU/EES on 05/16/2001 
10:09 AM ---------------------------
From: Harry Kingerski@ENRON on 05/16/2001 10:06 AM
To: Marty Sunde/HOU/EES@EES, David W Delainey/HOU/EES@EES, Janet R 
Dietrich/HOU/EES@EES, Dan Leff/HOU/EES@EES, Don Black/HOU/EES@EES, Wanda 
Curry/HOU/EES@EES, James W Lewis/HOU/EES@EES, Scott Stoness/HOU/EES@EES, 
Tamara Johnson/HOU/EES@EES, Scott Gahn/HOU/EES@EES, James M Wood/HOU/EES@EES, 
Jennifer Rudolph/HOU/EES@EES, Dennis Benevides/HOU/EES@EES, Marcus 
Dotson/HOU/EES@EES, Lamar Frazier/HOU/EES@EES, Robert C 
Williams/Enron@EnronXGate, Mike D Smith/HOU/EES@EES, Vicki Sharp/HOU/EES@EES, 
Diann Huddleson/HOU/EES@EES, jbennett@gmssr.com, jklauber@llgm.com
cc: James D Steffes/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON, Jeff 
Dasovich/NA/Enron@Enron, Paul Kaufman/PDX/ECT@ECT, Robert 
Neustaedter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Sandra 
McCubbin/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron 
Subject: CPUC decision on 3 cent rate increase for PG&E/SCE

Highlights:

Direct access customers are exempt from the surcharge. 
In giving its first hint on what it will do with the PX credit process, it 
said "we will proceed to reexamine and redesign the direct access credit 
system to reflect current structural reality."  (Translation - no 
market-based PX credits)
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). Responsibility for residential 
subsidy is split one third each to residential, commercial, and industrial
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 put in place.  No increase up to 130% of 
baseline (first 2 tiers), rate for fifth tier (above 300% of baseline) is 
about doubled.
Non-residential rate design - recommendations to put all of the increase into 
summer on-peak were rejected.  About 60% of increase put into summer.  
Industrial customers get a bill limiter which caps the average increase for a 
given customer to 12.3 cents/kwh for PG&E and 12.9 cents/kwh for SCE.
Real Time Pricing was endorsed - will further explore in workshops starting 
later in May.  Voluntary program will be started.
Federal facilities will be subject to a market rate pilot program.
Utilities are directed to specifically state on each bill the energy charges, 
including the 3 cent surcharge


Below is a more complete summary of the CPUC decision on the PG&E/SCE rate 
increase (prepared by Jeanne Bennett).