*  from Govt Affairs
*  DA customers are exempt from both plans

---------------------- Forwarded by Jennifer Rudolph/HOU/EES on 05/10/2001 
05:59 PM ---------------------------


Susan J Mara@ENRON
05/10/2001 04:23 PM

Apologies to those who already got this from Harry.

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 05/10/2001 02:20 PM -----

	Harry Kingerski
	05/10/2001 12:31 PM
		
		 

CORRECTION - last line, Monday, May 14



	Harry Kingerski
	05/10/2001 01:16 PM
		 
		 

2 proposed decisions were released last night by the California PUC - one by 
the Judge and one by Chairman Lynch.  

Direct access customers are exempt from the surcharge. 
Each customer class is allocated an equal 3 cents, plus an amount to cover 
the shortfall from having residential usage up to 130% of baseline exempt 
from the surcharge (as required by law).  Each decision allocates a 
substantial portion of the subsidy to non-residential classes, although Lynch 
does this to a lesser extent
The new rates become effective June 1, and the shortfall from the actual 
effective date of the increase, March 27, through June 1 will be amortized 
over 12 months.
Residential rate design - 5 tiers will be put in place; the 5th tier (300+% 
of baseline) gets a 35 cent per kwh rate
Non-residential rate design - recommendations to put all of the increase into 
summer on-peak were rejected.  About 60% of increase put into summer.  
Real Time Pricing was endorsed - will further explore in workshops starting 
later in May.  Voluntary program will be started.
In a vindictive outlash, Lynch decision requires federal facilities to pay 
market prices under new schedules to be developed by the utilities
Judge's decision seems to require surcharge to show up as a separate line 
item; Lynch's decision requires that it not be shown separately

Oral argument occurs Friday and final decision is expected to be voted out 
Monday, June 14.