A PHC was held in San Diego yesterday on the investigation into markets.

Wood is the Assigned Commissioner in the Investigation.  He's held one 
quasi-legislative hearing with hand-picked panelist in San Diego.  He intends 
to hold 3 others.  Panelist will be invited to participate.  I understand 
that the generators, who are not parties to the proceeding, have been 
subpoened by the CPUC to provide their generating information, which was 
supplied on Monday of this week.

This is shaping up in a very bad direction.  In addition to the "hand-picked" 
panels, only Wood, the ALJ and other Commissioners can ask questions.  The 
record could be developed to support the view point of roll-back to 
regulation.  This also could be used by the legislature next session.

I will be getting the ALJ's ruling on the questions the Commission would like 
to have answered.  We have not been contacted to participate in any panel, as 
of yet.

We may need to turn up the heat (PR?) on the process issues in this 
proceeding.  It is shaping up to be a sham investigation.

I will forward pertinent portions of the transcript when available.

---------------------- Forwarded by Mona L Petrochko/SFO/EES on 08/30/2000 
01:51 PM ---------------------------


JMB <JBennett@GMSSR.com> on 08/30/2000 12:36:17 PM
To: "'ARM@Phaser.com'" <ARM@Phaser.com>
cc: "'jleslie@luce.com'" <jleslie@luce.com>, MBD <MDay@GMSSR.com> 
Subject: PREHEARING CONFERENCE -- FOLLOW UP


For those of you who were not at the Prehearing conference yesterday in San
Diego, here are the highlights:

1.  An assigned commissioner's ruling is to be issued in the near future (I
speculate today or tomorrow) setting forth a number of questions to which
parties will be asked to respond.  We have no information as to what those
questions will consist of.

2.  Additional quasi-legislative hearings (like the ones held last week)
have been scheduled for September 8, 14, 15 in San Diego.  An agenda is
promised to be forthcoming.  We made a pitch yesterday to have some
representatives from the "sell" side of the equation represented at these
hearings.

3.  ALJ Wetzell stated his intent to have a scoping memo issued by next
week.  There was talk about the issuance of a draft scoping memo, with
opportunity for parties to comment.

4.  The ALJ and Commissioner Wood gave each party an opportunity to talk and
state what they believe should be within the Scope of the Proceeding.  In
addition to my speaking on behalf of ARM, John spoke for Shell, Kathleen for
the New Power Group and Dan Douglass for Enron. In addition, the retail side
of the proceeding got some play from representatives of the Department of
General Services, New West Energy and UCAN.

Follow Up Action Items

After the prehearing conference, the ARM members which were present caucused
(over lunch of course) to talk about next steps.

1.   We decided that it would be a good idea to be proactive in determining
a schedule for the proceeding and helping to ensure that our issues did not
get back burnered (as the UDCs would like).  Therefore, we are going to
submit a proposed schedule to the ALJ.  This schedule will propose a
dual-track proceeding, with the tracks running simultaneously.  The issues
will be split somewhat along the wholesale/retail lines.  I have attached a
draft of that schedule I am not sure how we want to formulate it.  If we
"file" it, then it would have to be done in the form of a motion (giving
other parties a chance to respond).  So we might want to take what I have
done and turn it into a letter to Wetzell and Wood.  Please give me your
thoughts.  Also, I have filled in dates which would have a final decision on
February 1, 2001.  Seems like a far time out, but I am not sure where to cut
it (again your thoughts are welcomed).  I would like to get this to Judge
Wetzell in what ever form we decide no later than Friday a.m.

2.  Also, it was decided that it would be extremely helpful for ARMers to
have a face to face pow wow to plot our course for the OII.  We are thinking
next Thursday afternoon (Sept. 7th) in San Diego before the
quasi-legislative hearing on Friday.


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Jeanne


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