-----Original Message-----
From: 	Steffes, James D.  
Sent:	Monday, August 20, 2001 8:25 PM
To:	Dasovich, Jeff; Kingerski, Harry; Mara, Susan
Subject:	Going Forward California Costs - Future Revenue Reqts

I wanted to make sure that everyone is on the same page related to utility costs in California.  These costs may be (will be?) collected  from some utility customer, potentially including direct access customers.


Bucket #1	Utility Undercollection Feb 1, 2000 Through Jan 18, 2001

About $12.0 Billion (this money includes our Negative CTC amounts).  Should be financed through corporate debt.  No securitization.

Enron's Position:	Bundled service on Jan 1, 2001 pays fixed c/kwh

Bucket #2	CDWR Cost from Jan 5, 2001 through Bond Issuance or March 31, 2002

About $12.5 Billion  (about $10 Billion for spot purchases and $2.5 Billion for long-term buys)

Enron's Position:	Dedicated Rate Component (DRC) for all residential and small customers.  Larger customers are assigned direct responsibility for the Undercollection on c/kwh.  Balancing account for holding Utility even.  

Bucket #3	Prospective Generation Costs for Bundled Service Post March 31, 2002

URG 	= $40/mwh (retained generation and bilateral contracts)
CDWR 	= $120/mwh
QF 	= $100/mwh  

TOTAL 	= URG*%sales + CDWR*%sales + QF*%sales
	= $90/mwh


Bucket #4	AB1890 Non-Generation Stranded Costs



Bucket #5	AB1890 Generation Stranded Costs