I will not do as thorough a summary as Leslie has been providing, but below
are a few interesting items from Today's hearings:

1.  Update on testimony on Governor's proposal.  The governor's office
submitted their testimony. Basically it consisted of a letter from the
Governor urging its consideration, the same handouts passed out at the
workshop a week and a half ago (with a cover page slapped on it stating it
was testimony) and answers written out to the questions asked at the
workshop.  The governor's office is not at this time offering a sponsoring
witness.  The ALJ took statements as to whether the "testimony" should be
allowed into evidence.  PG&E was vehemently opposed; SCE was okay with it.

2.  The Commission's expert witnesses will take the stand tomorrow and
Wednesday morning.  The idea is that each of them will give an approximate
30 minute presentation, and then parties will have an opportunity to cross
on those statement.

2.  ORA witnesses took the stand.  A couple of interesting items came out of
Sean Casey's cross examination.  First, ORA has changed its position as to
the amortization of the March-June undercollection. They are now saying it
should be amortized over 12 months (rather than three).  Second, Sean Casey
would not testify that "as a general rule peak prices this summer would be
higher than off peak."  He stated that given the anomalies in the market
this past year, he could not testify to such a statement. Finally, with
respect to the direct access credit, he testified that irrespective of
whether DA customers pay the three cent surcharge, they should get it back
in the credit.


Jeanne Bennett