The spreadsheet below gives the implicit commodity based on the effective 
date of four different rates for the same rate schedule (Schedule DR). The 
rate schedule effective August 2000 through September 2000 yields a much 
larger commodity charge because SDG&E customers will receive a lump sum 
reimbursement from SDG&E over those two months. SDG&E customers will expect 
lower electric bills.

Assuming that the lump sum reimbursement is not included in the implicit 
energy component, the average for June 2000 through January 2001 is 6.2 cts 
and the  implicit commodity average from February 2001 through December 2001 
is 7.3 cts.

The average implicit commodity from June 2000 through December 2001 is 6.9 
cts   
For deliveries starting September 1, 2000, the average would still be 6.9 cts.

Assuming that the lump sum reimbursement is included in the implicit energy 
component, the average for June 2000 through January 2001 is 7.4 cts and the  
implicit commodity average from February 2001 through December 2001 is 7.3 
cts.

The average implicit commodity from June 2000 through December 2001 is 7.3 
cts   
For deliveries starting September 1, 2000, the average would be 7.2 cts.

Clarification:  The caps apply the first 500 kWh consumed by all residential 
customers. For those who consume more than 500 kWh per month, the market 
rates will only apply for all consumption above 500 kWh.
 
---------------------- Forwarded by Bruno Gaillard/SFO/EES on 08/23/2000 
02:55 PM ---------------------------


Bruno Gaillard
08/23/2000 02:33 PM
To: Christopher F Calger/PDX/ECT@ECT
cc: Roger Yang/SFO/EES@EES, James D Steffes/HOU/EES@EES, Thane 
Twiggs/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, SF Directors, Paul 
Kaufman/PDX/ECT@ECT 
Subject: Re: Energy prices embedded in the Duque Interim Bill Cap  

Attached is an internal analyses put together by Roger Yang and myself 
reflecting the implicit energy charge as a result of Duque's bill cap. The 
energy charge varies as new delivery rates are implemented throughout 2000 
and 2001. 

The total number of residential customers in the SDG&E territory is 
approximately 1.1 Million. According to Duque's Decision only 70% will be 
protected by the cap.