Clarifications:

SDG&E's Bill cap is as follows

Residential: $68 per mouth through 1/1/01 and $75 per mouth through 12/31/01 
for those who consume 500kWh per month or less - market prices for the others 
residential.
Commercial: $220 per mouth through 1/1/01 and $240 per mouth through 12/31/01 
for those who consume 1500 kWh per month or less - market place for other 
commercial
The decision intends to allow for future adjustment of the kWh monthly 
consumption for bill caps retroactive to June 1, 200 to ensure that customers 
in hotter inland regions have an appropriate level of usage cap and medium 
size commercial customers are provided relief.
---------------------- Forwarded by Bruno Gaillard/SFO/EES on 08/22/2000 
02:56 PM ---------------------------


Bruno Gaillard
08/21/2000 03:45 PM
To: Edward Hamb/HOU/EES@EES, Jennifer Rudolph/HOU/EES@EES, Chris 
Hendrix/HOU/EES@EES, Greg Cordell/HOU/EES@EES, Harold G Buchanan/HOU/EES@EES, 
Martin Wenzel/SFO/HOU/EES@EES, Douglas Condon/SFO/EES@EES, James M 
Wood/HOU/EES@EES, Gary Mirich/HOU/EES@EES, Dennis Benevides/HOU/EES@EES, 
Roger Yang/SFO/EES@EES, David Parquet@ECT, mday@gmssr.com, SF Directors, 
Marcie Milner/Corp/Enron@ENRON, Paul Kaufman/PDX/ECT@ECT, Mary Hain@Enron, 
James D Steffes/HOU/EES@EES, Richard Shapiro/HOU/EES@EES, Harry 
Kingerski/HOU/EES@EES, Thane Twiggs/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, 
Steven J Kean/NA/Enron@Enron
cc: Maureen McVicker/NA/Enron@Enron, Ginger Dernehl/NA/Enron@Enron 
Subject: SDG&E Rate Cap

Duque's Decision passed 3-2 (Duque, Neeper, Bilas - Lynch, Wood) - Both 
Neeper and Bilas said that they were only voting for this decision because of 
pressure. They both felt that last meeting's decision provided sufficient 
relief and provided for a investigation to address longer term problems.

Summary: 

The Decision institutes a rate stabilization for residential and commercial 
customers
 Residential: $68 through 1/1/01 and $75 through 12/31/01 for those who 
consume 500kW or less - market prices for the others residential 
 Commercial: $220 through 1/1/01 and $240 through 12/31/01 for those who 
consume 1500 kW or less - market place for other commercial

Other rate schedules: Subject to market prices

Implementation date: Retroactive to 6/1/00 - SDG&E will provide a credit for 
those customers that are eligible no latter than September 30th

The decision intends to allow for future adjustment of the kWh rate caps 
retroactive to June 1, 200 to ensure that customers in hotter inland regions 
have an appropriate level of usage cap and medium size commercial customers 
are provided relief.

The bill stabilization plan requires SDG&E to file comments, by September 30, 
addressing the implementation and transition of a Levelized Payment Plan 
(LPP) for all customers on an "opt out" basis. However, the procedure for the 
implementation of the LLP will allow customers to readily exercise choice, 
while those that do not exercise choice will default into the LPP.

The Commission will also further study the bill stabilization plan as to 
direct access customers. 

Revenue shortfalls are to be booked into the TCBA for future recovery of the 
net shortfall. 

Discussion: 
Senator Alpert, Assembly Women Davis, Mayor Golding , the former mayor, 
several members of the City and County of San Diego Board of Supervisors made 
a public appearance. All thanked the Commission for  having this special 
session. All supported the Wood decision. All stated that it did not  go far 
enough and insisted that all customers should be subject to the cap. Assembly 
Women Davis stated that she would be going back to the legislation  to pass 
the Davis/Alpert Bill establishing a cap for all customers. However, 
Asseblymember Wright, chairman of the Utilities and Commerce Committee, has 
been open and has shown opposition to the Alpert/Davis bill. 

If you have any questions, please call me at 415-782-7810

Bruno Gaillard - Government Affairs