CORRECTION - last line, Monday, May 14



	Harry Kingerski
	05/10/2001 01:16 PM
		 
		 To: Wanda Curry/HOU/EES, James W Lewis/HOU/EES, Mike D Smith/HOU/EES, Don 
Black/HOU/EES, Scott Stoness/HOU/EES, Diann Huddleson/HOU/EES, 
jklauber@llgm.com, Vicki Sharp/HOU/EES, Marcus Dotson/HOU/EES
		 cc: James D Steffes/NA/Enron@Enron, Leslie Lawner/NA/Enron@Enron, Susan J 
Mara/NA/Enron@ENRON, Jeff Dasovich/NA/Enron@Enron, Sandra 
McCubbin/NA/Enron@Enron, Paul Kaufman/Enron@EnronXGate, Robert 
Neustaedter/ENRON_DEVELOPMENT@ENRON_DEVELOPMENT, Richard 
Shapiro/NA/Enron@Enron
		 Subject: Rate design for 3 cent Rate increase for PGE/SCE

2 proposed decisions were released last night by the California PUC - one by 
the Judge and one by Chairman Lynch.  

Direct access customers are exempt from the surcharge. 
Each customer class is allocated an equal 3 cents, plus an amount to cover 
the shortfall from having residential usage up to 130% of baseline exempt 
from the surcharge (as required by law).  Each decision allocates a 
substantial portion of the subsidy to non-residential classes, although Lynch 
does this to a lesser extent
The new rates become effective June 1, and the shortfall from the actual 
effective date of the increase, March 27, through June 1 will be amortized 
over 12 months.
Residential rate design - 5 tiers will be put in place; the 5th tier (300+% 
of baseline) gets a 35 cent per kwh rate
Non-residential rate design - recommendations to put all of the increase into 
summer on-peak were rejected.  About 60% of increase put into summer.  
Real Time Pricing was endorsed - will further explore in workshops starting 
later in May.  Voluntary program will be started.
In a vindictive outlash, Lynch decision requires federal facilities to pay 
market prices under new schedules to be developed by the utilities
Judge's decision seems to require surcharge to show up as a separate line 
item; Lynch's decision requires that it not be shown separately

Oral argument occurs Friday and final decision is expected to be voted out 
Monday, June 14.