[Sorry guys, I didn't click "reply all" on this reply to Jim.]

Given recent press releases, it seems as if the governor is suggesting that 
the use of "real-time meters" be increased so as to give correct price 
signals to customers.

Do you--or any sources in California--know if they foresee increasing the 
on-peak charge?  This would effectively result in only commercial and 
industrial customers paying for the shortfall.

/Tamara.
---------------------- Forwarded by Tamara Johnson/HOU/EES on 03/06/2001 
11:19 AM ---------------------------


Tamara Johnson
03/05/2001 09:16 AM
To: James D Steffes/NA/Enron@ENRON
cc:  
Subject: Re: MRW Consultant - Status  

Regarding rate-specific forecasts:

I suggest using the current frozen tariffs as a starting point, with the 
forecasted generation cost increases to be applied as a straight $/MWh 
adder.  This would allow MRW efforts to be concentrated on generation cost 
forecasts -- which is obviously the biggest uncertainty.

As a side issue, I would ask that they provide their perspective on how 
bundled generation might be priced on a go-forward basis.  For example, if 
they see the IOU's going back to old-school demand and energy charges.  Or, 
if they see that the on or off-peak percentages might change.  Given their 
knowledge of rate-making practices in California, this should take minimal 
time and provide all that is needed.  They would then be set up to do some 
what-ifs on existing rate structures.

/Tamara.




From: James D Steffes@ENRON on 03/02/2001 06:50 PM
To: Robert Neustaedter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT
cc: Harry Kingerski/NA/Enron@Enron, Jeff Dasovich/NA/Enron@Enron, Tamara 
Johnson/HOU/EES@EES 
Subject: Re: MRW Consultant - Status  

On your last point, I think that we need to as rate class specific as 
possible without delaying their work.  Disagreements?

Jim





	Robert Neustaedter@ENRON_DEVELOPMENT
	03/01/2001 06:20 PM
		 
		 To: James D Steffes/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron, Jeff 
Dasovich/NA/Enron@ENRON
		 cc: Tamara Johnson/HOU/EES@EES
		 Subject: MRW Consultant - Status

Spoke with Bill Munson and Roger Yang of MRW

Scope of project would be rate forecast for PGE and SCE industrial/commercial 
class customers for 24-36 month period providing alternate scenarios for 
certain issues - MRW will provide assumptions Friday morning.

Cost - Close of Monday deliverable - $10k
          - Thursday - $7k

FYI - Submitted RCR for $25K

With respect to determination of "Net Short" generation cost - MRW suggested 
generation cost be allocated on a cost incurrence basis (no subsidies) and 
that we agree as to mix of DRW portfolio and utilize Enron forward curves to 
price out

Provided to MRW utility tariff schedules that majority of positions are 
under.  Need to determine if we want an individual rate projection, average 
rate class projection or benchmark projection (%increase).