Here in one answer on why an ESP agreed to support termination of the audit

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 07/11/2001 12:52 PM -----

	"Anderson, Robert E(Z01841)" <Bob_Anderson@apses.com>
	07/11/2001 12:48 PM
		 
		 To: "'Susan.J.Mara@enron.com'" <Susan.J.Mara@enron.com>
		 cc: 
		 Subject: RE: A.98-07-026 et al. - Joint Petition of SCE, PG&E, and SDG&E


We agreed to this petition to terminate the audit once the year 2000 was
complete so that we could use that for our negative PX Credit claim proof.
Following Jan 19th of 2001 this schedule is dead anyway. Needing the audit
results of 1999 and 1998 was useless. We will be lucky to gain our money
from 2000 there is absolutely no hope of getting anything from those years
if there was an error. In addition our own analysis didn't show any areas we
were worried about in those years after our 2 run in and subsequent UDC
corrections in 98 and 99. The initial UDC position was to simply stop paying
for the audits just as they did with the PX Credits with virtually no
discussion with the CPUC.

-----Original Message-----
From: Susan.J.Mara@enron.com [mailto:Susan.J.Mara@enron.com]
Sent: Wednesday, July 11, 2001 12:23 PM
To: Anderson, Robert E(Z01841); athomas@newenergy.com
Subject: Fw: A.98-07-026 et al. - Joint Petition of SCE, PG&E, and SDG&E


Why did you two support eliminating the audit of the PX Credit?

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 07/11/2001 11:20 AM -----
 

                    "Dan Douglass"

                    <douglass@energyatt        To:     "Vicki Sandler"

                    orney.com>                 <vicki_sandler@apses.com>,
"Sue Mara"        
                                               <susan_j_mara@enron.com>,
"Steve Huhman"     
                    07/10/2001 06:47 PM        <steve.huhman@mirant.com>,
"Roger Pelote"    
                                               <roger.pelote@williams.com>,
"Rob Nichol"    
                                               <rsnichol@newwestenergy.com>,
"Randy Hickok" 
                                               <rjhickok@duke-energy.com>,
"Nam Nguyen"     
                                               <nam.nguyen@powersrc.com>,
"Joe Paul"        
                                               <jmpa@dynegy.com>, "Jeff
Dasovich"           
                                               <jeff.dasovich@enron.com>,
"Janie Mollon"    
                                               <jsmollon@newwestenergy.com>,
"Jack Pigott"  
                                               <jackp@calpine.com>, "Greg
Blue"             
                                               <gtbl@dynegy.com>, "George
Vaughn"           
                                               <gavaughn@duke-energy.com>,
"Gary Ackerman"  
 
<foothillservices@mindspring.com>, "Curtis   
                                               Kebler"
<curtis_l_kebler@reliantenergy.com>, 
                                               "Curt Hatton"
<curt.hatton@neg.pge.com>,     
                                               "Corby Gardiner"

                                               <jcgardin@newwestenergy.com>,
"Charles       
                                               Miessner"
<camiessn@newwestenergy.com>,      
                                               "Carolyn Baker"
<cabaker@duke-energy.com>,   
                                               "Bob Anderson"
<Bob_Anderson@apses.com>,     
                                               "Bill Ross"
<billr@calpine.com>, "Ed         
                                               Cazalet" <ed@cazalet.com>,
"Denice Cazalet   
                                               Purdum" <dpurdum@apx.com>,
"Robert Berry"    
                                               <berry@apx.com>, "Tamara
Johnson"            
                                               <tjohnso8@enron.com>, "Max
Bulk"             
                                               <mbulk@apx.com>

                                               cc:     "ARM"
<arem@electric.com>, "Kenneth  
                                               Moy" <Kennethm@abag.ca.gov>,
"Jerry Lahr"    
                                               <jerryl@abag.ca.gov>, "Dave
Finigan"         
                                               <davef@abag.ca.gov>, "Merilyn
Ferrara"       
                                               <merilyn_ferrara@apses.com>

                                               Subject:     Fw: A.98-07-026
et al. - Joint  
                                               Petition of SCE, PG&E, and
SDG&E             
 





Attached for your information is a joint petition for modification of the
1998 Revenue Adjustment Proceeding ("RAP") decision filed today by SCE,
PG&E
and SDG&E.  The utilities request that, on an expedited basis, the
Commission limit the scope of the PX Credit audit which WPTF obtained in a
negotiated settlement in the 1998 RAP proceeding to remaining year 2000
calculations and thereafter order that the audit be terminated.  They state
that the audit is both irrelevant and costly and that "common sense
demands"
the Commission reconsider the decision.

They ask that comments in opposition be filed by August 3, reply comments
on
August 10 and a Commission decision at its meeting scheduled for August 23.
They also ask the Commission to waive the period provided in Rule 77.7 for
comments and reply comments on a draft decision in order that the decision
become final immediately.

The filing states that there have been dramatic changes in energy markets,
the number of DA customers has declined significantly and that ratepayers
should not have to pay for the audit.  Of course, they don't mention that
the reason for the decline in DA customers is their own failure to pay the
PX Credit.  It is instead attributed to the "dysfunctional restructuring
scheme and concommitant rise in wholesale energy prices."  They justify
their request legally by stating that their filing demonstrates that there
are "significant new facts" and a "material change in conditions."  The
third criteria for reopening or modifying a Commission decision, a basic
misconception of law or fact by the Commission, is not alleged to have
occurred.

They also state that DA penetration will continue to decline because
"Assembly Bills X1-1 and X1-6 have effectively reregulated the market."

Attached to the filing are declarations from the three ESP members of the
Audit Committee, Bob Anderson of APSES,  Aaron Thomas of AES NewEnergy and
Marilynn Semro of Seattle City Light Department, in support of the
utilities' petition.  I have not reviewed the specific wording changes to
the RAP decision to determine if there are any problems with the proposed
modifications.

Dan

Law Offices of Daniel W. Douglass
5959 Topanga Canyon Blvd.  Suite 244
Woodland Hills, CA 91367
Tel:   (818) 596-2201
Fax:  (818) 346-6502
douglass@energyattorney.com

(See attached file: 7-10-01 RAP Joint Petition.PDF)