fyi, on a different note, given legislative approval of frozen tariff 
application in SDG&E, we are determining best course of action.  Will follow 
up with you shortly.
Regards
Delainey
---------------------- Forwarded by David W Delainey/HOU/EES on 05/16/2001 
08:44 AM ---------------------------


James D Steffes@ENRON
05/15/2001 06:42 PM
To: David W Delainey/HOU/EES@EES, Janet R Dietrich/HOU/EES@EES, Dan 
Leff/HOU/EES@EES, Marty Sunde/HOU/EES@EES
cc: Harry Kingerski/NA/Enron@Enron, Richard Shapiro/NA/Enron@Enron 
Subject: Final Commission Decision on 3c/kwh Rate Design

The CPUC voted out the decision today on the 3c/kwh Surcharge late today.  We 
are reviewing and will have a final analysis early tomorrow.

Jim

---------------------- Forwarded by James D Steffes/NA/Enron on 05/15/2001 
06:40 PM ---------------------------


JBennett <JBennett@GMSSR.com> on 05/15/2001 06:15:49 PM
To: "Harry Kingerski (E-mail)" <Harry.Kingerski@enron.com>, "Jeff Dasovich 
(E-mail)" <jdasovic@enron.com>, "Jim Steffes (E-mail)" 
<James_D_Steffes@enron.com>, "Lelie Lawner (E-mail)" 
<Leslie.Lawner@enron.com>, "Scott Stoness (E-mail)" <sstoness@enron.com>, 
"Sue Mara (E-mail)" <smara@enron.com>, "Sue Mara (Business Fax)" 
<IMCEAFAX-Sue+20Mara+40+2B1+20+28415+29+20782-7854@GMSSR.com>, "Tamara 
Johnson (E-mail)" <tjohnso8@enron.com>
cc:  

Subject: Final Commission Decision on Rate Design

At the continuation meeting held this afternoon, the Commission voted out
the Alternate Proposed Decision on SCE/PG&E rate design.  The vote was 3 to
2, with Bilas and Duque voting "no".

Absent a close reading (which I have not had the opportunity to do yet), it
is difficult to discern all the changes made to the alternate as it was not
put out in a red-lined form.  While the version voted out today contains a
lot more verbiage supporting the previously made resolutions of the issues,
the only real substantive changes made appear to be (1) it lowers the cap on
agricultural customers rate increases from 30% to 20% for agricultural TOU
customers, and to 15% for agricultural non-TOU customers; and (2) it places
an average rate increase cap on industrial customers.  For PG&E, this
average rate increase cap is 12.3 cents/kWh; for SCE its $12.9 cents/kWh.
The decision does not contain alot of explanation on the industrial cap.  I
am assuming that the "average rate increase" refers to the average across
TOU periods.

I will review the Decision more closely, providing a complete summary
tomorrow.  In the mean time, if you have any questions, please call.

Jeanne Bennett