Thanks to all of you who responded.  I will briefly describe what we think 
the play is based on the input provided.

 Bob Hanson, Jennifer Rudolph and Roger Yang "scored" with providing the 
information below.

Most likely the consultant will suggest converting accounts on AL-TOU, 
AY-TOU, and AO-TOU to one of the following rate schedules: AV-1 AV-2, and 
AV-3.  These are general service variable TOU rate schedules.  The purpose of 
these rate schedules was to send the customer price signals to curtail during 
times when the transmission system was constrained.  Like many of UDC 
experimental programs, customers often did better on this rate schedule, 
compared to their otherwise applicable rate schedule, even if they did not 
follow the price signals.

That loop hole is being closed by SDG&E.  They have a draft decision from the 
CPUC changing the distribution rate components associated with these rate 
schedules, thus closing the loop hole.  Based on these changes, customers 
should pay significantly more than their otherwise applicable rate schedule, 
unless they follow the price signals.  If the customery follows the price 
signals this program is like a curtailable program or RTP program.  The 
customer would have to shut down load or use DG during high priced hours.

I expect we have not heard the last from these individuals.

Just for the record this is what we think the play is.  The consultant will 
not share their strategy with the customer until after a contract is signed.  
Normally the up-front consultant fee is between $8K - $15K and then a 50/50 
sharing of the savings over 3 years.  

SDG&E also charges a setup fee, which includes special equipment, of $4500 to 
be on these AV rate schedules per account.

George Waidelich
NES- WEST
925-543-3801
---------------------- Forwarded by George Waidelich/SFO/EES on 10/10/2000 
10:13 AM ---------------------------


George Waidelich
10/06/2000 05:10 PM
To: Douglas Condon/SFO/EES@EES, Greg Cordell/HOU/EES@EES, Dennis 
Benevides/HOU/EES@EES, Ress Young/HOU/EES@EES, Brian Dafferner/HOU/EES@EES, 
Ken Detina/HOU/EES@EES, Edward Hamb/HOU/EES@EES, Chris Hendrix/HOU/EES@EES, 
Ronald G Mentan/SFO/EES@EES, Gary Mirich/HOU/EES@EES, Jennifer 
Rudolph/HOU/EES@EES, John Woodman/SFO/EES@EES, Frank Wanderski/HOU/EES@EES, 
Jubran Whalan/HOU/EES@EES, Jeff Dasovich/NA/Enron@Enron, Jeff 
Dasovich/NA/Enron@Enron, Mona L Petrochko/SFO/EES@EES
cc: Martin Wenzel/SFO/HOU/EES@EES, Walton Agnew/HOU/EES@EES, Dirk 
vanUlden/Western Region/The Bentley Company@Exchange 
Subject: Market Intelligence - USI Corporation - Help

I am trying to find out if anybody knows anything about USI Corporation.  
They are a rate hawk out of San Juan Capistrano, CA. (So Cal).

They have approached Albertsons, who we are currently working with, about 
entering into an agreement with them.  They are promising a 15 - 20% savings 
($4-5MM) for their stores in SDG&E territory, just by putting them on another 
applicable utility rate that nobody is aware of  "loop hole".  Of course, 
they will not share this information until Albertsons has signed a contract.

The contacts we have been negotiating with have told them to get lost but USI 
went over their heads to senior management who is now asking for an 
explanation.

From a commodity origination and account management perspective a rate hawk, 
if hired, is just going to cause problems.

Any information that anybody can provide on:

1.  The Company
2.  There pitch in CA
3.  More specifically, their possible "loop hole or play" in SDG&E territory, 
would me much appreciated.

Please forward this message to anybody that might be able to help.

Is there an SDG&E interuptible tariff or a new ISO interuptible tariff that 
can generate this kind of savings?

Thanks,

George Waidelich
NES - West
925-543-3801