Jennifer;

Just a little more info with regard to the San Diego rate freeze 
legislation.  SB 43 (the Alpert bill) was signed by the Governor April 6 and 
filed with the Secretary of State April 9.  The language in the bill provides 
that the frozen rate would apply to the energy component of electric bills 
for electricity supplied to all customers by SDG&E not subject to the ceiling 
imposed by existing law (ie residential, small commercial and street 
lighting).  Review of that language would imply the rate freeze would not 
apply to direct access customers.  One caveat however.  The CPUC must now 
implement the passed legislation through its regulations.  While the intent 
of the legislation seems clear, the past record of the CPUC in implementing 
such legislative acts does not provide 100% assurance that logic will prevail.

As a footnote to the above, AB 43 (Correa - passing the Assembly and Senate 
April 5) is a "companion clean-up" bill to SB 43.  This bill is almost 
identical to SB 43 but reflects some limited technical corrections to SB 43.  
To our knowledge, as of yesterday, AB 43 had not been signed by the Governor.

In addition, there have been repeated questions with regard to the 
applicability of the 3 cent surcharge to direct access customers.  
Unfortunately, the status of its applicability is still up in the air.  
Various parties have raised this issue directly with the CPUC and in their 
comments with respect to the rate design phase of its implementation and will 
be one of the issues to be addressed (though perhaps not answered) next week 
in the Commission's rate design hearing.

If you could forward this to the rest of the CA team it would be appreciated.