Tom,

The testimony looks good.  I agree with your position on the rates.  It will
be raised so it is best to hit it head-on.  I am assuming you have IEP
approval on the use of your earlier study.  If not Calpine, Enron and Dynegy
can help get IEP to react.

Thanks

Craig

> -----Original Message-----
> From: Tom Beach [SMTP:tomb@crossborderenergy.com]
> Sent: Thursday, May 04, 2000 12:21 PM
> To: Michael Rochman; 'Cherry, Brian - TPBKC'; AlexanMS@sce.com;
> paulamirault@aec.ca; david.bayless@utility.com; Burkee@cts.com;
> Craigc@calpine.com; Rick.Counihan@greenmountain.com; Jdasovic@enron.com;
> Mday@gmssr.com; bdingwall@unitedgas.com; Douglass@arterhadden.com;
> eke@aelaw.com; Jfawcet@enron.com; rfoss@coral-energy.com; plg@cpuc.ca.gov;
> johnj@bcjlaw.com; Johnson_Pamela@lacoe.edu; karpjos@sf.whitecase.com;
> jleslie@luce.com; kmccrea@sablaw.com; jmpa@dynegy.com; rmp@cpuc.ca.gov;
> porterdk@sce.com; susan.scott@enron.com; 'Beamish, Richard - TPRMB';
> 'Betonte, Robert - TP2RSB'; 'Brill, Thomas R.'; 'Cotton, Gary'; 'Davis,
> Robert E.'; 'Davis, Steven D.'; 'Fair, Pam'; 'Follett, B. David - TPDBF';
> 'Fong, Ed'; 'Freeman, Kimberly'; 'Gaines, Mark - TPMFG'; 'Harrigan, James
> P. - TP1JPH'; 'Hay, James E.'; 'Hubbard, Lisa J.'; 'Lorenz, Lad - TPLPL';
> 'McVay, Nancy W - TPNWM'; 'Morrow, Rick - TP3RMM'; 'Purves, Ralph A.';
> 'Reed, William'; 'Sakarias, Wayne P.'; 'Schavrien, Lee'; 'Smith, Anne S. -
> TPASS'; 'Sullivan, Glen J.'; 'Surak, Thomas M. - TP1TMS'; 'Suwara, J.-
> TPJUS'; 'Takemura, Earl - TPEKT'; 'Teeter, James S.'; 'Van Lierop, Jan -
> TP2JXV'; 'Watson, Steven - TP2SAW'; 'Wright, Gillian - TP1GXW'; 'Barker,
> David - TPDTB'; 'How-Downing, Lindsey'; 'Jun, Christine'; 'Khoury,
> Dexter'; ack@aelaw.com
> Cc: David Dyck; Tom Lu
> Subject: Next Draft of EG Testimony in Support of the Comprehensive
> Settlement Agreement
>
> Attached is (hopefully) the final draft of my testimony on behalf of
> electric generators in support of the Comprehensive Settlement Agreement
> for SoCalGas.  I have incorporated comments from Edison, Dynegy, CCC, IP,
> and SoCalGas.  Please let me know if you have any further concerns, by
> e-mail or at 510-649-9790.
>
> With respect to Glen Sullivan's concerns about discussing the rate impacts
> on EGs, I have the following comments.  Certainly, it is difficult at this
> point to project how much backbone capacity will be subscribed, and at
> what cost.  However, it is a fact that every end user on the SoCalGas
> system will need to acquire and pay for backbone capacity in order to move
> gas to their facility.  Lad and Gillian made, in my view, a reasonable
> estimate that, on average, end users would pay $0.07 per Dth for backbone
> service, based on total backbone costs divided by BCAP throughput.  Some
> may use interruptible service and pay 120% of this rate; others may obtain
> backbone service at a discount.  On average, Lad and Gillian's numbers are
> a reasonable projection and very defensible.  Moreover, in my view, we
> need to try to seize the high ground on the issue of rate impacts on EGs;
> otherwise SCGC will do so, and our settlement could face a real problem.
>
> Tom Beach << File: EG Testimony.doc >>