Energy  Committee, Blackout Busters and Business Continuity Members - though 
you would  be interested in this.

?-----Original Message----- 
From:  ? William Booth [mailto:wbooth@booth-law.COM]  
Sent:?? Wednesday, May 23, 2001 11:30 AM  
To:???? CLECA MEMBERS??  
Subject:??????? Rate Comparison  Table-Updated 

<<Comparison Table  5.10.01.xls>>??  ?Folks-Just for fun I have updated the 
rate proposal  comparison table showing the impact of the adopted decision 
rates.? I am in  the process of preparing an Application for Rehearing of the 
decision.? The  reason for doing this is to give Comm Brown another chance to 
do the right  thing.? We have been told that he was literally tricked by 
Loretta Lynch on  the day of the decision as to what was included in the 
decision before  them.? You can imagine how difficult it will be for the CPUC 
to reverse  their revenue allocation and take more heat from residential  
customers.

We understand that the CPUC is prepared to consider  several actions that 
will make things even worse for us.? First, there is a  proposal to 
investigate the level of baseline allowances with the clear intent  of 
expanding them.? News articles this weekend suggested outrage about the  low 
level of the baseline allowances.? This will increase the baseline  revenue 
shortfall and raise pressure for more rate increases on us.?  Second, in the 
legislature there is renewed talk of a Core/Non-Core Plan, an  item that was 
put off in January when the 130% of baseline plan was  adopted.? Apparently, 
some in the leadership think it would be a good idea  to assign the cost of 
Net Short purchases directly to industrial customers, with  the utility 
retained generation and QF contracts assigned to residential and  small 
commercial customers.? They apparently have reviewed certain polling  results 
that the public would support such an allocation of costs.? One  wonders how 
many times they think they can kill us.

The only good news I have is that the talk of a  "Buyers' Cartel" is 
increasing.? That is, the State would agree with the  states of Oregon and 
Washington to set and limit the prices that they will pay  for power at 
wholesale.? This would be done with the knowledge that each  state may come 
short of the power necessary to serve load and thus to additional  rotating 
outages.? But, in the absence of federal price caps, it is the  only 
realistic way to curb outlays for power that, at present levels, will  wreck?
the economy of the State.? Bill

 - Comparison Table 5.10.01.xls