From the most recent information we have, the most likely outcome appears to 
be the following:

As we've discussed this week, the administration and the utilities continue 
to have a very difficult time reaching agreement on 1) how much of the 
undercollection the IOUs should absorb and how much consumers should absorb 
and 2) how big the rate increase should be to manage the IOUs cash 
flow/credit  problems (governor wants 10%, IOUs want at least 20%). 
It remains likely that the Commission will rule today on relaxing regulations 
to make it easier for the IOUs to enter into longer-term contracts w/out 
getting 2nd and 3rd guessed by the Commission.
It is likely that the Commission will signal strongly that it will not let 
the IOUs go bankrupt but will only go so far as to outline its plan for 
considering and implementing a "rate stabilization" plan in Q1 2001.

That said, the stakes are very high and things could change dramatically 
between now and 2 PM PST.  Just talked to two SVPs with PG&E and Edison and 
they said that they don't know what the Commission will do at 2.  

Jeff



	Joseph Alamo
	12/21/2000 12:30 PM
		 
		 To: George McClellan/HOU/ECT@ECT, Kevin McGowan/Corp/Enron@ENRON, Stuart 
Staley/LON/ECT@ECT, Lisa Yoho/NA/Enron@Enron, skean@enron.com, Richard 
Shapiro/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON, Sandra 
McCubbin/NA/Enron@Enron, Paul Kaufman/PDX/ECT@ECT, James D 
Steffes/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron, Wanda 
Curry/HOU/EES@EES, Dennis Benevides/HOU/EES@EES, Roger Yang/SFO/EES@EES, 
Scott Stoness/HOU/EES@EES, Mary Hain/HOU/ECT@ECT, Alan Comnes/PDX/ECT@ECT, 
Joe Hartsoe/Corp/Enron@ENRON, Sarah Novosel/Corp/Enron@ENRON, Mona L 
Petrochko/NA/Enron@Enron, Jennifer Rudolph/HOU/EES@EES, Eric 
Letke/DUB/EES@EES, Vicki Sharp/HOU/EES@EES, Michael Smith/ENRON@enronxgate
		 cc: Jeff Dasovich/NA/Enron, Lysa Akin/PDX/ECT@ECT
		 Subject: California PUC Decision Info/Update


On behalf of Jeff Dasovich, please note:  

the California PUC decision will be available on 
the PUC website @ 1:00 PM PST. 

The Commission will continue the meeting @ 2:00 PM PST 
to address the issue.

Thanks,

Joseph Alamo
Sr. Admin. Asst.
Government Affairs - The Americas
San Francisco CA