In lay speak, the new alternative decision looks like it could lead to a very 
quick end to the rate freeze and the associated PX Credit.  Roger's 
suggesting sometime in the 1st Quarter 2001
----- Forwarded by Susan J Mara/NA/Enron on 12/13/2000 04:38 PM -----

	Roger Yang@EES
	12/13/2000 03:35 PM
		 
		 To: Scott Stoness/HOU/EES@EES, Dennis Benevides, James W Lewis/HOU/EES@EES, 
Gordon Savage/HOU/EES@EES
		 cc: Paul Kaufman/PDX/ECT@ECT, Richard Shapiro/NA/Enron@Enron, Jeff 
Dasovich/NA/Enron@Enron, Susan J Mara/NA/Enron@ENRON, Harry 
Kingerski/NA/Enron@Enron
		 Subject: 

The CPUC Meeting agenda changed the following item to read as follow:



A99-01-016 - Pacific Gas and Electric Company (PG&E).
                                                For authority to establish 
post-transition period electric ratemaking mechanisms.
                                                A.99-01-019, A.99-01-034, 
A.99-02-029, A.00-10-028 - Related matters. This
                                                decision addresses the 
extraordinary financial situation facing PG&E and Edison
                                                as a result of current 
problems in the wholesale electric market and includes an
                                                assessment of accounting 
changes and adjustments previously proposed in this
                                                proceeding. Simultaneously, 
the Commission will expedite its review of market
                                                valuation proceedings to 
determine the feasibility of lifting the rate freeze as
                                                expeditiously as possible, 
and to evaluate the need for reasonable rate increases.

Previously, this item read as follows:

"The decision denies the emergency petitions to modify D99-10-057 and D..... 
filed by PG&E and SCE on October 4, 2000.
The decision adopts the accounting changes proposed by TURN as a first step 
in assessing the impacts of electric restructuing
on cost recovery.The Commission will continue to monitor the impact on the 
utilities in future phases of this proceeding or successor
proceedings."

There is an all party meeting at the CPUC on the proposed decision for next 
Tuesday.  I have to think that the rate freeze will end no later than the end 
of Q1 2001.
This is when the utilities' cash is expected to run out, as well as the 
latest there would be a final valuation decision.

We need to discuss.

Roger