The impact on the book for the PG&E and SCE increases described below would be

April to December 2001:  $86.9 million  ($38.8 mm PG&E; $48.1 mm SCE)
For whole book, $195 million (PV).

/Tamara.

---------------------- Forwarded by Tamara Johnson/HOU/EES on 02/13/2001 
10:15 AM ---------------------------


Tamara Johnson
02/13/2001 10:16 AM
To: Scott Stoness/HOU/EES@EES
cc: Marcus Dotson/HOU/EES@EES, Jodi Thrasher/HOU/EES@EES, Yasir 
Khan/HOU/EES@EES, Greg Cordell/HOU/EES@EES 
Subject: prelim numbers on expected generation cost increases for CA bundled 
rates

I have reviewed the preliminary drafts by the 3 CA IOU's with respect to 
required generation purchases.

My analysis shows that bundled customers would need to see the following 
increase in the generation portion of their bundled rate to pay for the 
shortfall (increase above the $10/MWh).  I used $90/MWh as an average rate 
for the DWR purchases.

PG&E $12/MWh
SCE $23/MWh

Note that this does not recover any past undercollections for previously 
purchased energy.  PG&E is proposing an adder of $7/MWh for undercollections.

For SDG&E, the currently rate-capped customers (at $65/MWh) would need to see 
a $43/MWh increase.