Here are notes on 43x that Harry Kingerski put together.

Jim






Regarding proposed rate freeze for large SDG&E customers at 6.5 cents:
Adds to DWR's burden of covering the net short positions without any further 
clarification of how shortfall will be funded. The incentive these customers 
now have to participate in DA and thereby remove burden from DWR is removed.
Creates incentives to increase usage and decrease conservation, exactly at 
the time that just the opposite effect is desired. Rate at frozen level 
removes all price signal effect in unregulated market.
These are customers who under existing law already have had choice, as an 
alternative to paying market price, of 1) voluntarily opting in to a one year 
6.5 cent rate freeze, with a true-up, or 2) buying commodity and risk 
management products in the competitive market, as many of them have already 
done, and 3) reducing usage to save money. This bill takes takes away the 
last two choices/incentives. 
Adopting "rates by proxy" (in a sense, indexed to PG&E and SCE rates) creates 
the potential for a regulatory nightmare.
As an alternative, the Legislature should consider extending the voluntary 
opt-in program under existing law. This would preserve existing protection, 
keep choices available to customers, and not unduly add to DWR's burden.
I don't think that we have any real facts about usage increases due to the 
bill, only the general understanding that if prices don't rise people won't 
take any real action.
Jim? 






	Jeff Dasovich
	Sent by: Jeff Dasovich
	03/13/2001 07:12 PM
		 
		 To: James D Steffes/NA/Enron@Enron, Janel Guerrero/Corp/Enron@Enron
		 cc: 
		 Subject: Re: san diego



----- Forwarded by Jeff Dasovich/NA/Enron on 03/13/2001 07:10 PM -----

	Jeff Dasovich
	Sent by: Jeff Dasovich
	03/13/2001 07:10 PM
		
		 To: Janel Guerrero/Corp/Enron@Enron
		 cc: 
		 Subject: Re: san diego


If you're referring to the conversation we had on today's call, it's actually 
a bill by Dede Alpert (sp?) that, if signed by the Governor, would cause 
demand to go up.  Were you referring to that or something more general?

Best,
Jeff



	Janel Guerrero
	03/13/2001 06:47 PM
		 
		 To: James D Steffes/NA/Enron@Enron, Jeff Dasovich/NA/Enron@Enron
		 cc: 
		 Subject: san diego


is it possible to get a one-pager talking points on the san diego situation 
and how the govenor is increasing the demand on the system as we head into 
summer?  who can do this?