Is it too late to fix this.  I agree with Tamara that we don't need to be so 
weak.
---------------------- Forwarded by Scott Stoness/HOU/EES on 04/25/2001 01:28 
PM ---------------------------


Tamara Johnson
04/25/2001 01:10 PM
To: Scott Stoness/HOU/EES@EES
cc:  
Subject: Advice Letter Protest on SCE PX Credit

Scott,
I don't want to weigh in and bring up points that the rest of you have 
already debated.

However, I don't think that this draft improves upon Jeanne's earlier one.  
To stress that
"the credit must be more in line with costs avoided by ..." doesn't at all 
help the argument that the rate freeze hasn't ended, so the PX credit should 
still be such that DA customers receive a market-based credit.

By using the "avoided cost" argument, where avoided cost means"marginal cost 
of last unit purchased", aren't we setting ourselves up to never get access 
to the embedded low-cost generation?

I think this concern could be avoided if the first section says that status 
quo was
where:
utility sold all energy into PX and bought all energy from PX AND customers 
saw no rate increase, so PX credit was equal to PX price
therefore, since PX is no longer around
DA gets no rate increase by combination of
 (i) access to low cost embedded generation and 
 (ii) market price based credit for rest of generation  (where these two 
equal to cost to SCE for generation)

Or, DA gets no rate increase by receiving market price based credit for all 
of its generation -- which is more practical to calculate.
This is necessary until rate freeze is over.

In first case, where DA gets share of low cost embedded generation, they can 
both pay the surcharges and receive them as a credit.  In the second case, 
they neither pay nor receive a credit for the surcharges.

/Tamara

---------------------- Forwarded by Tamara Johnson/HOU/EES on 04/25/2001 
12:51 PM ---------------------------


JBennett <JBennett@GMSSR.com> on 04/25/2001 12:43:59 PM
To: Harry.Kingerski@enron.com, Jeff.Dasovich@enron.com, 
Leslie.Lawner@enron.com, tjohnso8@enron.com, James D Steffes  
<James_D_Steffes@enron.com>, "Scott Stoness (E-mail)"  <sstoness@enron.com>, 
"Sue Mara (E-mail)" <smara@enron.com>
cc: MDay <MDay@GMSSR.com> 
Subject: Advice Letter Protest on SCE PX Credit


Attached is the revised version of the protest of SCE's advice letter on the
PX credit.  Please provide all comments ASAP.  If you cannot get them to me
by 12:30 PDT, then send to Mike Day for incorporation.

 <<X23803.DOC>>

Jeanne Bennett

 - X23803.DOC