Note item 2, per our conversation today.
---------------------- Forwarded by Mona L Petrochko/SFO/EES on 09/20/2000 
03:12 PM ---------------------------


JMB <JBennett@GMSSR.com> on 09/20/2000 02:32:17 PM
To: "'MPetroch@enron.com'" <MPetroch@enron.com>
cc:  
Subject: UDC Filings


FYI:

(1) SDG&E filed a petition to modify Decision 00-06-034 (Phase II PTR) with
respect to the decision's implementation schedule for hourly PX pricing for
customers with hourly interval meters.  Ordering Paragraph 19 of that
decision requires that all bundled customers with hourly interval meters be
billed using hourly data once the rate freeze ends.  As SDG&E's freeze had
already ended, the Commission directed SDG&E to file an advice letter to
implement the hourly pricing.  It did so on July 7th, proposing to implement
hourly billing on August 1 for customers above 4500 kW and on October 1 for
customer between 500 and 4500 Kw.  The advice letter has not yet been acted
on.  SDG&E is now petitioning for authority to implement hourly PX pricing
for customer on a voluntary basis for customers at or above 500 kW starting
December 1, 2000.  SDG&E's reasoning is that converting to hourly billing
will increase average bills by 7-8% over current bills.  Something which
customers cannot handle given the current price spikes in SDG&E's service
territory.  SDG&E also notes that it is now required to implement a
voluntary program that would electric rates at 6.5 cents kWh for large
commercial and industrial customers.  It states that it wants to "develop an
hourly pricing program that is complimentary to and consistent with" that
requirement.

I was unsure whether the hourly PX pricing was a big issue for Enron (or
ARM).  Please let me know if you want a copy of the petition or would like
to respond to it.


(2)  As you know, PG&E filed a petition for writ of review of Commission
Decision 99-10-057 (Phase I PTR) with the Court of Appeals on the issue of
post rate freeze collection of non transition costs.  That writ was
summarily denied on September 6, 2000 (i.e., the court declined to hear the
case).  PG&E has now filed a Petition with California Supreme Court for
review of the Court  of Appeals denial. Of note in the filing, is that PG&E
states  that its "uncollected out of pocket purchase costs currently total
approximately $2.2 billion."

Thats all for now.

Jeanne