Latest CPUC events:

1.  Annual Transition Cost Proceeding

This is the proceeding that sets the recovery rates for on-going (PPA, QF,
Nuke) CTCs for San Diego.  This proceeding will also address the
reasonableness of SDG&E's purchases over the summer.  On reasonableness,
the coalition in which we participate, ARM, Alliance for Retail Markets,
will be monitoring, as any disallowance will affect our retail deals in
SDG&E's service territory.

Secondly, SDG&E has proposed a higher-than-anticipated rate for ongoing
CTCs, that will produce an expected overcollection at the end of the year.
SDG&E has proposed to use the overcollection from ongoing CTCs, which are
collected from all customers, to offset its undercollections of the
electricity procurement rate cap that was passed by the legislature last
September.  Such an allocation will negatively affect our retail deals who
do not benefit from the rate cap.  We would oppose the cross-subsidy.

A pre-hearing conference was held on Monday, establishing a procedural
schedule for the reasonableness aspect of SDG&E's filing.  ALJ Barnett.
The assigned Commissioner is

2.  Emergency Motions on SCE/PG&E on Revenue Undercollections.

Both SCE and PG&E filed motions to revise Commission Decisions which
prevent them from carrying costs incurred during the transition period into
the post-transition era.  PG&E and SCE are concerned about their ability to
recover an increasing undercollection resulting from the rate freeze.  TURN
had filed a motion that would allow PG&E/SCE to fold the undercollection
into their stranded costs and maintain the same recovery period through
2001.  The Commission has indicated that they are only interested in
interim accounting measures to provide relief.  The TURN measure gives the
utilities an opportunity of recovery, which they can present to Wall Street
in order to continue to issue s-t debt.  It is not a long-term solution,
however, such a solution will not be dealt with in this proceeding.  There
is another docket that will be opened in December to deal more broadly with
issues around the continuation of the rate freeze.  Also this is likely to
be the basis of a settlement going into the next legislative session.

We are generally supportive of TURN's proposal and will be filing comments
on Thursday, November 9.