Summary of Davis/Alpert bill:

1.  Retro-active to June 1, 2000 through December 31, 2002, 6.5 cent/kWh cap 
on the energy component for residential and small commercial customers (under 
100 kW).  The Commission has the ability to extend through 2003.  The 
Commission also has the ability to adjust the cap.
2.  Commission can use revenues from utility-owned assets, refunds from FERC 
to offset the undercollections.  (In addition, a companion bill was passed 
that provides $150 million of general fund money to offset undercollections.)
3.  Large commercial/industrial/agricultural customers have an opportunity to 
"opt-in" to the 6.5 cent/kWh cap with an annual true-up.
4.  SDG&E will under a prudence review by the CPUC, which may be another 
source of funds to offset the undercollection.

Specific classes subject to cap:

Schedule A, all acute care hospitals, all public and private k-12 schools, 
all accounts on AL-TOU under 100 kW.







Mona L Petrochko
08/31/2000 09:46 AM
To: James D Steffes/HOU/EES@EES, Harry Kingerski/HOU/EES@EES, Richard 
Shapiro/HOU/EES@EES, West GA, Tim Belden@ECT, Dennis Benevides/HOU/EES@EES, 
Roger Yang, James M Wood/HOU/EES@EES, Martin Wenzel/SFO/HOU/EES@EES, Douglas 
Condon/SFO/EES@EES, Greg Cordell, Edward Hamb/HOU/EES@EES, Jennifer 
Rudolph/HOU/EES@EES, Mary Hain@Enron, Joe Hartsoe@Enron, Cynthia 
Sandherr/Corp/Enron@ENRON, Karen Denne@Enron, Peggy Mahoney/HOU/EES@EES, Mark 
Palmer/Corp/Enron@ENRON, Chris Hendrix/HOU/EES@EES, Brian 
Dafferner/HOU/EES@EES, Gary Mirich/HOU/EES@EES, George Waidelich/SFO/EES@EES, 
Ronald G Mentan/SFO/EES@EES, Chris Hendrix/HOU/EES@EES, Ken Detina/HOU/EES@EES
cc:  
Subject: CA Leg Update

The Alpert/Davis Bill (AB 265) and AB 1154 were voted out of the assembly 
last night.  Three bills are now joined together.  The Alpert/Davis Bill (AB 
265), Ducheny Siting Bill (AB 970) and AB 1154, which provides $150 million 
of money from the general fund to offset undercollections resulting from the 
Alpert/Davis bill imposition of a rate cap.  

AB 970 is being heard in the assembly as we speak.  It is expected to be 
voted out.  Then all three bills will be sent to the Governor to be signed. 

There were no revisions to the Alpert/Davis bill.

Green Mountain is working on a letter, that Alpert would sign, saying that 
underrecoveries resulting from the rate cap will be recovered from customers 
that benefitted from the rate cap and that DA customers will not be 
disadvantaged.