Facts for talking points:

Transmission net plant (as of 1999):
PG&E,  $1.43 B
SCE,     $1.90 B

Distribution net plant (as of 1999):
PG&E,  $6.58 B
SCE,     $4.88 B

Total costs (revenue requirement) for Transmission (1999):
PG&E, $0.40 B    includes return on capital (0.12B), taxes, depreciation, o&m 
(0.10B)
SCE,     $0.57 B   includes return on capital (0.15B), taxes, depreciation, 
o&m (0.21B)

Transmission costs as % of total utility costs (1999):
PG&E,  5% 
SCE,     7%

Securitization of entire transmission revenue stream creates maybe $20 
million annually of additional head room for the 2 utilities (2% of $1B), 
plus whatever tax effects may accrue from state vs. private ownership.

A 50% premium to book value purchase generates a $1.7 B combined windfall to 
utilities, before tax effects, or about 15% of the under-recovered amounts of 
$13 B. 

Alan and I will work on refining these messages.