Attached are some edits on your summary and some comments from Roger about 
future rate affects.  Please call me if you have questions.
---------------------- Forwarded by Mona L Petrochko/SFO/EES on 04/20/2000 
09:47 AM ---------------------------


Roger Yang
04/20/2000 08:52 AM
To: Mona L Petrochko/SFO/EES@EES
cc:  
Subject: Re: ResCo S-1, CA Summary  

Edits look great.  Another item that may be worth mentioning is that expected 
declining CTC rates and the eventual drop off of the charge to payback Rate 
Reduction Bonds will offset potential increases in future transmission and 
distribution rates.  Transmission rates are expected to increase from cost 
shifting under the ISO TAC proposal.  Also transmission investments to 
alleviate transmission constraints will be partially offset by the avoidance 
of RMR costs.  PG&E will file another distribution rate change for 2002 that 
may result in a significant adjustment, but distribution rates are expected 
to level off after that once a PBR has been implemented.  ND and PPP are 
expected to be relatively flat.  All this is important to know to understand 
the risks for products with commitments exceeding 1 year.

Roger





Mona L Petrochko
04/19/2000 05:04 PM
To: SF GA, Roger Yang
cc:  
Subject: ResCo S-1, CA Summary

I made some edits, ignoring the "rosy" picture except as it relates to 
meter/bill.  Any additional comments before we send a response to Thom?


---------------------- Forwarded by Mona L Petrochko/SFO/EES on 04/19/2000 
05:01 PM ---------------------------

Thomas S Reichelderfer
04/19/2000 04:05 PM


To: Susan J Mara/SFO/EES@EES, Mona L Petrochko/SFO/EES@EES
cc:  
Subject: ResCo S-1, CA Summary

Sue & Mona - Please take a look at this "optimistic" summary of the CA 
situation and make sure that it is factually correct.  Thanks.  Thom