I understand that SDG&E has a filing that is setting the new rates for 2001.  
My hunch is that they are establishing a CTC rate to overcollect.  That 
overcollection will then be used to offset the costs of the cap.  SDG&E has 
the incentive to overcollect such that they can apply the amounts against the 
undercollections for the cap in order to mitigat their shareholder risks.  
The concern is that SDG&E is using ratemaking accounting to subsidize a 
service that does not benefit all customers, in particula large customers 
which we are serving.

Roger

---------------------- Forwarded by Roger Yang/SFO/EES on 10/25/2000 10:01 AM 
---------------------------


Roger Yang
10/23/2000 02:26 PM
To: Susan J Mara/SFO/EES@EES, Jeff Dasovich/NA/Enron@Enron, Mona L 
Petrochko/NA/Enron@Enron
cc:  
Subject: SDG&E

Just writing to inquire about what we are doing with respect to SDG&E's 
proposals to use overcollections recovered from all customers to pay off 
undercollections to customers subject to the rate cap in SDG&E's service 
territory.

Roger