---------------------- Forwarded by Susan J Mara/SFO/EES on 09/07/2000 04:28 
PM ---------------------------


bchen@newenergy.com (Bill Chen) on 09/07/2000 05:50:41 PM
To: arm@phaser.com, douglass@arterhadden.com, jbennett@gmssr.com, 
gac@mrwassoc.com, rbw@mrwassoc.com, has@mrwassoc.com, jnnc@chevron.com, 
daoa@chevron.com, ADeveau@sel.com
cc:  
Subject: 9/7/00 CPUC Mtg. - Recap


All,

Here's a summary of the actions taken at this morning's CPUC meeting.

SDG&E Rate Stabilization Plan

CPUC voted 5-0 to approve the Rate Ceiling Plan that implements AB 265
signed yesterday by Governor Davis.  The Plan basically tracks the
language of AB 265 by establishing a ceiling of 6.5 cents per kWh per
month on the electricity rate component of bills for residential, small
commercial and lighting customers.  The class of small commercial
customers, as defined in AB 265, also include all SDG&E customers on Rate
Schedule A, general acute care hospitals, K-12 public and private schools,
and all SDG&E customers on Schedule AL-TOU under 100 kW.  The Plan is
retroactive to June 1, 2000, extends through December 31, 2002 and is
effective immediately though it can be extended for another year if the
public interest calls for an extension.  SDG&E is required to record any
revenue shortfalls to a balancing account within the TCBA with any net
revenues generated from SDG&E-owned or managed generation assets to be
used to offset any undercollections that result.

In addition, AB 265 charged the CPUC with setting up a voluntary program
for large commercial, agricultural and industrial customers who procure
energy from SDG&E so that these customers may elect to cap the electricity
rate component at the 6.5 cents ceiling, with a true-up after a year.  The
CPUC is giving parties 15 days from today's decision to file comments on
this provision with reply comments due 15 days after the comments are due.

Moreover, the CPUC also ordered that the investigation into the electric
market opened by the August 3 OII be broadened specifically to address the
issues raised in Assembly Joint Resolution (AJR) 77.  AJR 77 emphasized
the need to review "the options for correcting the electricity market,
methods to eliminate price volatility for consumers and methods of cost
recovery and cost allocation."

Lastly, AB 265 also orders an investigation into the prudence and
reasonableness of SDG&E's procurement of wholesale electric energy
beginning on June 1, 2000.  Based on its findings, the CPUC is authorized
to take action on behalf of SDG&E customers, including, but not limited
to, refunds.

No public comments were made on this matter.  The Commissioners' comments
were basically limited to statements such as the Legislature and the
Governor have spoken, and we are bound to implement AB 265 immediately.

RAP '99

No big surprise here, this was held to the next meeting.

SDG&E Bilateral Contracts Authority

Held to next meeting.

Other Energy Matters

Most of the energy Resolutions were held over to the next meeting such as
SCE's master-metering request, PG&E's request to modify its Price
Responsiveness Load Program (E-BID) and PG&E's request to file a new
tariff, OBMC-Optional Binding Mandatory Curtailment Plan.