Below is the analysis of CDWR savings.  Please contact Robert Neustaedter 
with any questions.  Jennifer

----- Forwarded by Jennifer Thome/NA/Enron on 04/20/2001 02:20 PM -----

	Robert Neustaedter@ENRON_DEVELOPMENT
	04/13/2001 09:42 AM
		 
		 To: James D Steffes/NA/Enron@Enron, Harry Kingerski/NA/Enron@Enron, Jeff 
Dasovich/NA/Enron@ENRON, Jennifer Thome/NA/Enron@ENRON, Susan J 
Mara/NA/Enron@ENRON, Paul Kaufman/PDX/ECT@ECT, Alan Comnes/PDX/ECT@ECT
		 cc: 
		 Subject: Direct Access - Potential Cost Savings

This memo lays out some numbers with regard to the question raised earlier 
this week concerning the savings to CDWR if direct access were to be 
reinstated.

Using available annual mWh sales figures for PG&E and SCE (1999), commercial 
and industrial sales as a percentage of total sales is 63% for PGE and 68% 
for SCE, or, in terms of annual mWh purchases, approximately 63,900,000 kWh 
for PGE and 61,200,000 kWh for SCE for a total C&I purchase requirement of 
125,100,000 kWh.

Assuming that every kWh of C&I load that switches to direct access is an 
equivalent reduction in CDWR purchase requirements (which assumes that CDWR 
fills 100% of the net short) and bracketing CDWR per unit purchase costs 
between its published portfolio cost and an assumed market price of $250 per 
kWh, the following cost reductions (stated on a monthly basis) are shown 
below:


		Per Month Purchase Cost Reduction
Switch to Direct Access	CDWR Portfolio Cost - $79/mWh	Market Price - $250/mWh
5%	$41mm	$130 mm
10%	$ 82 mm	$260 mm
15%	$123 mm	$390 mm
20%	$164 mm	$420 mm

If you have any questions with regard to the above or require further 
analysis please advise.