-----Original Message-----
From: 	Chad Landry  
Sent:	Tuesday, May 08, 2001 11:05 PM
To:	Patrick Keene
Cc:	Jean Ryall
Subject:	PUC Open Meeting

Pat-

In regards to the U-COS cases, Commissioner Wood and Commissioner Perlman decided to give the utilities (Reliant and TXU) a week to file their motion for reconsideration.  Basically, TXU and Reliant felt that they did not have enough time to compare the PUC staff's rate estimates to their own analysis.  Therefore, the commissioners instructed the Utilities to meet and work with the PUC staff over the next week so that both parties can reach an agreement on  the necessary rate schedules applicable to their service territories.  The deadline for their motion for reconsideration is May 17th.

In regards to the TXU fuel factor case (Dkt. 23640),  Commissioner Wood indicated that we have two viable options:  1)  We could look at each utility on a case by case basis and decide whether or not we want to include the surcharge in the Price to Beat (PTB) period starting January 1, 2002.  Or, 2) We could make this surcharge a part of the True-up process in 2004.  Wood indicated that Option 1 would undoubtedly increase head room (approximately 4/10 of cent  per kwh was his estimate).  However, Wood saw benefit in Option two because it would serve as a hedge against the possibility of a Utility having negative stranded investment.  Wood said that he could see both sides of it because on the one hand you had "a head room enhancer" and on the other hand you have a "negative stranded cost off-set."  Wood ultimately deferred to Commissioner Perlman who made the decision to include the fuel surcharge in the true-up process in 2004 (Option 2).

CKL