General
Enron and CEC testimony was allowed in to the case with the understanding 
that our real time pricing proposals can't be implemented by June 1, but the 
proposals may be useful for long term direction of ratemaking in California.
Utilities will file testimony by Friday evaluating the billing constraints on 
each of the various parties' proposals.
Entire day was used for SCE witness.  Plan was for both utilities to be done 
today.
Questions represented a mix of interest in allocation of increase among 
classes and rate design within class.  Line of questioning was generally true 
to their filed position.
Subdued tone.  Not one objection all day.  
Schedule of witnesses will go pretty much day to day.  Wednesday - an 
agricultural panel, then PG&E.  Should take up most of day.

SCE Witness (Dr. Jazayeri)
Costs of purchases from DWR are not known at this time.  Can't properly 
design TOU rates without this information.  Once info is known, can reflect, 
but unlikely before next March when general rate case with rate design is 
filed for 2003.
Demand response has not been reflected in rate design.  Not possible to 
anticipate/measure elasticity at this time.
Net short occurs in all time periods, in MWs:  summer on-peak, 5,400; summer 
mid-peak, 4,800; summer off-peak, 3,000; nonsummer mid-peak, 3,500, nonsummer 
off-peak, 2,100.
Top 100 hours is good for allocating capacity but not energy.  Doesn't 
support that method.
Supports no application of surcharge to DA if details are worked out in 
legislation, i.e., rules for arbitraging standard offer.
Summer/winter ratio of rates (about 2:1) based on judgement.  Actual costs 
(DWR) not known.  Open to adjustment once info is available.
Regarding tiers for non-TOU, recognizes may be penalty to large, efficient 
users just because they are large.  This is unfortunate.  Can't design rates 
customer by customer.
Prefers 2 month vs 12 month allocation of shortfall (Mar 27 - Jun 1 rate 
increase) because fo financial burden to SCE of carrying cost.
Agrees fixed TOU rates do not adjust to market conditions but that's the way 
rates are.  Behavior of prices in market is uncertain anyway.
If DWR revenue requirement goes up, that will be presented to PUC and we'll 
adjust then.

Judge's questions:
Per ACR, interested in rates segmented by SIC codes and prior year's usage.  
Response was administrative problems make difficult if not impossible.
How will you implement Governor's 20/20 plan?  Will compare daily average use 
this year to last year.  If down 20%, get 20% credit.  Will be a simple 
yes/no criteria and will not involve as many disputes as customer by customer 
rates.