Quantity Limits- For SCE and PG&E, previously approved BFM limitations are 
the following:
SCE 
Limits for BFM products including retail energy transactions, and daily and 
balance of the month BFM products:
Retail Energy markets are limited at SCE's net short position which is a 
maximum of  
 Q1: 2,200 MW, Q2 2,200 MW, Q3: 5,200 MW, Q4: 3,000 MW
Participation ion daily and balance of the month BFM products are limited to 
amounts above 1,000 MW SCE's net short position.

PG&E 
Limits for BFM products including retail energy transactions, and daily and 
balance of the month BFM products:
Retail Energy markets are limited at PG&E's net short position which is not 
disclosed. However it is reasonable to assume that it is at least 3,000 MW 
for the summer quarters given that PG&E had previously filed asking for a 
limit of 3,000 MW.
 Participation in daily and balance of the month BFM products are limited to 
amounts above 1,000 MW PG&E's net short position.

SDG&E BFM limits approved in Advice Letter 1234-E
Monthly and Quarterly Forward Market:  1900 MW July-September, 1700 MW all 
other months
Daily and Balance of Month quantities will not exceed 1000 MW more than the 
limits in the forward markets
Ancillary Services  will not exceed 90% of SDG&E's forecast ancillary 
services for the month or the quarter.
SDG&E's limits are ultimately limited to the load to customers under 20 kW. 

---------------------- Forwarded by Bruno Gaillard/SFO/EES on 08/04/2000 
04:13 PM ---------------------------


Bruno Gaillard
08/03/2000 06:39 PM
To: David Parquet/SF/ECT@ECT, Tim Belden/HOU/ECT@ECT, Robert 
Badeer/HOU/ECT@ECT, Jake Thomas/HOU/ECT@ECT, Michael McDonald/SF/ECT@ECT, 
Greg Wolfe/HOU/ECT@ECT, Mona L Petrochko/SFO/EES@EES, Jeff 
Dasovich/SFO/EES@EES, Paul Kaufman/PDX/ECT@ECT, Susan J Mara/SFO/EES@EES, 
Sandra McCubbin/SFO/EES@EES, Roger Yang/SFO/EES@EES, Dennis 
Benevides/HOU/EES@EES
cc:  
Subject: Bilateral Contracts for SCE, PG&E and SDG&E

Both SCE and PG&E have been authorized to purchase energy, capacity, and 
ancillary services through bilateral contracts.
Quantities are limited to previously authorized limits in the forward market 
(the PX Block Forward Markets)
The contracts must expire on or before 12/31/05.
For both PG&E and SCE, these contracts will be subject to limited 
reasonableness review.
PG&E will not be allowed to enter into such contracts after the transition 
period ends (3/31/02). The Commission will continue e to oversee the 
procurement practices on a quarterly basis. 
This was an emergency motion, so it is reasonable to assume that both PG&E 
and SCE can enter into such transactions immediately.

SDG&E is authorized to enter into bids for 6*16 delivery period or a 7*24 
delivery period for terms of 8/00 through 12/00 or 8/00 through 3/01. 
SDG&E will submit bids to buy energy a levelized price for both terms.
SDG&E will bid only for small commercial and residential customers under 20kW
The quantities are limited to the quantities that they had approved in the 
BFM participation spelled out in advice letter 1234-E. I do not have a copy 
of that advice letter off hand but will provide you with the information 
tomorrow.

We will provide you with more details soon.

If you have any questions please do not hesitate to contact me.

Attached are the decision related to the above issues.