Diann --

I was under the impression that we had taken all necessary steps to protect our customers?  Is this problem just related to residential customers?

Jim

 -----Original Message-----
From: 	Huddleson, Diann  
Sent:	Friday, September 14, 2001 2:59 PM
To:	Williams, Robert C.
Cc:	Curry, Wanda; Mellencamp, Lisa; Hughes, Evan; Steffes, James D.
Subject:	ATTORNEY-CLIENT COMMUNICATION

All, I finally got an answer from PG&E concerning the residential customer who had an amount transferred to his utility bill after he was switched from direct access.  PG&E admits that they transferred accumulated credit balances off of the residential accounts BEFORE they calculated the final direct access bill.  The final bills were all debit amounts due to the rate increases and the new procured energy credit calculations.  

PG&E then transferred these debit balances on to the customers' first utility bill.  We found out this had happened when we received calls from angry customers who had received disconnect notices.  They had been told by PG&E that Enron had refused to pay the final bills.  My guess is that most customers paid the balances rather than risk disconnection.

I requested a list of all credit balances transferred from PG&E so we can do an analysis of how much money is involved.  However, I have not sent a written request.  I thought I should confer with you before I send any formal request.

We also have an issue with SCE.  They are transferring debit balances  to residential customers for service PRIOR to direct access.   If you recall, their argument for not reinstating prior balances was that they consider these new accounts.  If that is indeed their process, this is inconsistent.