It looks like SCE's request is similar to PG&E's request.  If recovery of 
undercollected procurement costs through a post-freeze surcharge means that 
the rate freeze is guaranteed to December 31, 2001 or March 31, 2002, SCE's 
proposal is not necessarily bad.  If we can get the CPUC to throw SCE and 
PG&E a bone, while keeping the percentage of ultimate recovery uncertain, 
this may solve a lot of concerns.  We would also like to see any recovery 
managed over multiple years in order to keep the surcharge to a minimum.  The 
surcharge will have a negative impact on our current book; however, this 
impact may net out against any positive impacts for such a plan for both PG&E 
and SCE.  Additionally, deferring and/or extending the recovery period for 
the surcharge will mitigate negative impacts to our book.  Even though a 
surcharge will cause higher delivery curves which may result in less 
attractive bundled energy deals (depending on the customer's benchmark), we 
will still be able to sell unbundled commodity only deals which will largely 
depend on the post-freeze deregulated market structure.  We have implemented 
the strategy to sell unbundled commodity only, when the regulatory risks 
become too volatile and when the market structure supports demand for such a 
product (e.g. SDG&E's service territory).

I don't necessarily think it is prudent to publicly oppose the utilities on 
this issue.  I am not even sure we should tip our hand by saying anything 
publicly on this issue.  We might want to maintain a poker face in public.  
If we come out to strongly, then we might foreclose an opportunity to work 
with the utilities.  If we come out in support, people might figure us out.  
Whatever the outcome, it is important to preserve the rate freeze as it 
exists today, which means a PX credit for DA customers.

Roger


---------------------- Forwarded by Roger Yang/SFO/EES on 10/09/2000 10:32 AM 
---------------------------


Mona L Petrochko
10/06/2000 09:28 AM
To: West GA, Harry Kingerski@EES, James D Steffes/NA/Enron@Enron, Laird 
Dyer/SF/ECT@ECT, Michael McDonald@ECT, David Parquet@ECT, Roger Yang, Dennis 
Benevides/HOU/EES@EES, Mary Hain@Enron
cc:  
Subject: Fwd: A. 99-01-034 SCE's Ex Parte Request for the 
ImmediateSuspension, etc, 10-5-00

FYI.
---------------------- Forwarded by Mona L Petrochko/SFO/EES on 10/06/2000 
07:26 AM ---------------------------


"Daniel Douglass" <douglass@ArterHadden.com> on 10/05/2000 06:39:04 PM
To: <JBarthrop@electric.com>, <mnelson@electric.com>, 
<RSchlanert@electric.com>, <mpetroch@enron.com>, <susan_j_mara@enron.com>, 
<counihan@greenmountain.com>, <athomas@newenergy.com>, <bchen@newenergy.com>, 
<kmagruder@newpower.com>, <Jeff.Hanson@phaser.com>, <anchau@shellus.com>, 
<andrew.madden@utility.com>, <ben.reyes@utility.com>, 
<chris.king@utility.com>, <david.bayless@utility.com>
cc:  
Subject: Fwd: A. 99-01-034 SCE's Ex Parte Request for the 
ImmediateSuspension, etc, 10-5-00



Today, Edison filed?an ex parte request that the Commission declare  that an 
unforeseen emergency
situation has arisen which merits the immediate  suspension as to SCE of the 
ffective date of those portions of Decisions  99-10-057 and 00-03-058 (the 
End of Rate Freeze Decisions) which do not permit  the recovery of a TRA 
balance after the end of SCE,s rate freeze.? The  following is a direct quote 
from the filing:
?
"Specifically, SCE asks for suspension of the effective date of application  
to
SCE of Conclusions of Law 3 and 4 in D. 99-10-057, which read:
3. Carrying over balances related to the &PX lag8 or
other unrecovered  costs in the TRA or the TCBA violates
the rate freeze provisions of AB 1890.  Delaying the end of
the rate freeze in order to resolve pending  Commission
proceedings addressing costs incurred during the rate
freeze  contravenes AB 1890.
4. Sections 368(a) and 367(a) do not permit the
utilities to carry over  after the rate freeze those costs
incurred during the rate greeze. Exceptions  to the rate
freeze that are not specifically ennumerated in AB 1890
are  not lawful.
SCE also asks for suspension, as to SCE, of effective date of the second  
bullet-pointed
subparagraph of Ordering Paragraph 2 in D. 99-10-057, which  reads:
2. The tariffs proposed by the advice letters shall not
be modified  except as required by this order, as follows:
* * * *
No utility may carry  over costs incurred during the rate
freeze period to the post )rate freeze  period,
notwithstanding the status of the Transition Revenue
Account  (TRA), relevant Commission proceedings, or
Power Exchange (PX) billings, as  set forth herein.
SCE also asks for suspension, as to SCE, of the effective date of  any
provisions of D. 00-03-058 which are consistent with the above  Conclusions 
of Law
and Ordering Subpararagraph.
This request is based upon and hereby incorporates the Emergency  Petition
Of Southern California Edison Company (U 338-E) For Expedited  Modification Of
Decisions 99-10-057 And 00-03-058 and the supporting  declarations of Chris
Dominski and W. James Scilacci (collectively, the  &Emergency Petition8) 
filed on
October 4, 2000."
?
Attached is a copy of the filing.
?
Dan
Date: Thu, 05 Oct 2000 19:15:13 -0400
From: "Archer, Anthony V" <ARCHERAV@sce.com>
To: "'kpoole@adamsbroadwell.com'" <kpoole@adamsbroadwell.com>, 
"'mdjoseph@adamsbroadwell.com'" <mdjoseph@adamsbroadwell.com>, 
"'epoole@adplaw.com'" <epoole@adplaw.com>, "'mpa@aelaw.com'" <mpa@aelaw.com>, 
"'jweil@aglet.org'" <jweil@aglet.org>, "'ronknecht@aol.com'" 
<ronknecht@aol.com>, "'berry@apx.com'" <berry@apx.com>,"'ed@apx.com'" 
<ed@apx.com>, "Daniel Douglass" <Douglass@ArterHadden.com>, "Freya Christian" 
<FChristi@ArterHadden.com>, "'mgomez1@bart.gov'" <mgomez1@bart.gov>, 
"'rschmidt@bartlewells.com'" <rschmidt@bartlewells.com>, 
"'wbooth@booth-law.com'" <wbooth@booth-law.com>, "'blaising@braunlegal.com'" 
<blaising@braunlegal.com>, "'rmccann@cal.net'" <rmccann@cal.net>, 
"'glwaas@calpx.com'" <glwaas@calpx.com>, "'lgurick@calpx.com'" 
<lgurick@calpx.com>, "'kmills@cfbf.com'" <kmills@cfbf.com>, 
"'rliebert@cfbf.com'" <rliebert@cfbf.com>, "'theresa_mueller@ci.sf.ca.us'" 
<theresa_mueller@ci.sf.ca.us>, "'honest@compuserve.com'" 
<honest@compuserve.com>, "'mbrubaker@consultbai.com'" 
<mbrubaker@consultbai.com>, "'ang@cpuc.ca.gov'" <ang@cpuc.ca.gov>, 
"'fua@cpuc.ca.gov'" <fua@cpuc.ca.gov>, "'jjz@cpuc.ca.gov'" <jjz@cpuc.ca.gov>, 
"'kim@cpuc.ca.gov'" <kim@cpuc.ca.gov>, "'kth@cpuc.ca.gov'" <kth@cpuc.ca.gov>, 
"'mer@cpuc.ca.gov'" <mer@cpuc.ca.gov>, "'raw@cpuc.ca.gov'" <raw@cpuc.ca.gov>, 
"'rtf@cpuc.ca.gov'" <rtf@cpuc.ca.gov>, "'ztc@cpuc.ca.gov'" <ztc@cpuc.ca.gov>, 
"'patrickm@crossborderenergy.com'" <patrickm@crossborderenergy.com>, 
"'pstohr@dbsr.com'" <pstohr@dbsr.com>, "'ad046@detroit.freenet.org'" 
<ad046@detroit.freenet.org>, "'pat.williams@dhcmail.com'" 
<pat.williams@dhcmail.com>, "'natutt@duanemorris.com'" 
<natutt@duanemorris.com>, "'gtbl@dynegy.com'" <gtbl@dynegy.com>, 
"'brbarkovich@earthlink.net'" <brbarkovich@earthlink.net>, 
"'jsilva@edisonenterprises.com'" <jsilva@edisonenterprises.com>, 
"'huse@eesconsulting.com'" <huse@eesconsulting.com>, 
"'sdefrawi@efaches.navfac.navy.mil'" <sdefrawi@efaches.navfac.navy.mil>, 
"'furutanj@efawest.navfac.navy.mil'" <furutanj@efawest.navfac.navy.mil>, 
"'cmkehrein@ems-ca.com'" <cmkehrein@ems-ca.com>, 
"'askaff@energy-law-group.com'" <askaff@energy-law-group.com>, 
"'difellman@energy-law-group.com'" <difellman@energy-law-group.com>, 
"'jtachera@energy.state.ca.us'" <jtachera@energy.state.ca.us>, 
"'LKristov@energy.state.ca.us'" <LKristov@energy.state.ca.us>, 
"'rtavares@energy.state.ca.us'" <rtavares@energy.state.ca.us>, 
"'Slayman@energy.state.ca.us'" <Slayman@energy.state.ca.us>, 
"'abb@eslawfirm.com'" <abb@eslawfirm.com>, "'jdh@eslawfirm.com'" 
<jdh@eslawfirm.com>, "'jbennett@gmssr.com'" <jbennett@gmssr.com>, 
"'jlondon@gralegal.com'" <jlondon@gralegal.com>, 
"'rick.counihan@greenmountain.com'" <rick.counihan@greenmountain.com>, 
"'ddavie@hesinet.com'" <ddavie@hesinet.com>, "'mhg@hetrading.com'" 
<mhg@hetrading.com>, "'smoss@hooked.net'" <smoss@hooked.net>, 
"'jeff@jbsenergy.com'" <jeff@jbsenergy.com>, "'jogg@jhenergy.com'" 
<jogg@jhenergy.com>, "'ewo@jmbm.com'" <ewo@jmbm.com>, 
"'napedersen@jonesday.com'" <napedersen@jonesday.com>, "'dws@keywaycorp.com'" 
<dws@keywaycorp.com>, "'karen@klindh.com'" <karen@klindh.com>, 
"'bloomje@la.whitecase.com'" <bloomje@la.whitecase.com>, 
"'btenney@landuselaw.com'" <btenney@landuselaw.com>, "'chilen@llgm.com'" 
<chilen@llgm.com>, "'jleslie@luce.com'" <jleslie@luce.com>, 
"'randy_britt@mayco.com'" <randy_britt@mayco.com>, "'chrism@mid.org'" 
<chrism@mid.org>, "'phanschen@mofo.com'" <phanschen@mofo.com>, 
"'rbw@mrwassoc.com'" <rbw@mrwassoc.com>, "'athomas@newenergy.com'" 
<athomas@newenergy.com>, "'derkp@newsdata.com'" <derkp@newsdata.com>, 
"'ell5@pge.com'" <ell5@pge.com>, "'j3m9@pge.com'" <j3m9@pge.com>, 
"'jyf1@pge.com'" <jyf1@pge.com>, "'whe1@pge.com'" <whe1@pge.com>, 
"'jbarthrop@powersavers.com'" <jbarthrop@powersavers.com>, 
"'keith-sappenfield@reliantenergy.com'" 
<keith-sappenfield@reliantenergy.com>, "'pjmuller@ricochet.net'" 
<pjmuller@ricochet.net>, "'melanie_gillette@rmiinc.com'" 
<melanie_gillette@rmiinc.com>, "'jbushee@sablaw.com'" <jbushee@sablaw.com>, 
"'kmccrea@sablaw.com'" <kmccrea@sablaw.com>, "'cohnap@sce.com'" 
<cohnap@sce.com>, "'costac@sce.com'" <costac@sce.com>, "'fosterbc@sce.com'" 
<fosterbc@sce.com>, "'lehrerjm@sce.com'" <lehrerjm@sce.com>, 
"'dbb@sdcity.sannet.gov'" <dbb@sdcity.sannet.gov>, "'kmelville@sempra.com'" 
<kmelville@sempra.com>, "'LVanWagenen@sempra.com'" <LVanWagenen@sempra.com>, 
"'anchau@shellus.com'" <anchau@shellus.com>, "'dmarcus@slip.net'" 
<dmarcus@slip.net>, "'aorchard@smud.org'" <aorchard@smud.org>, 
"'thaines@smud.org'" <thaines@smud.org>, "'bfinkelstein@turn.org'" 
<bfinkelstein@turn.org>
Cc: "Cohn, Ann" <Ann.Cohn@sce.com>,"Fox, Beth" <Beth.Fox@sce.com>, "Lehrer, 
James" <James.Lehrer@sce.com>, "Chadsey, Linda" <Linda.Chadsey@sce.com>, 
"Monalisa, Dina" <MONALID@sce.com>, "Simpson, Mary C" <SIMPSOMC@sce.com>
Subject: A. 99-01-034 SCE's Ex Parte Request for the ImmediateSuspension, 
etc, 10-5-00
Mime-Version: 1.0
Content-Type: multipart/mixed; boundary="=_1941F0B8.89E8C083"

 <<SCE's Ex Parte Request For Suspension, Etc.>>

 Attached is SCE's Ex Parte Request For The Immediate Suspension Of
The Effective Date of Portions of D.99-10-057 and D.00-03-058 Relating To
The Post Rate Freeze Recovery Of The TRA Balance.

 This document was filed and served today on all parties of record in
A. 99-01-034, et. al., (PTR)

 Thank you,
Anthony V. Archer
So. Cal. Edison's Legal  Dept.
Tele: 626 302-3104
Pax:: 2-3104
Fax:: 2-2304
Suite 315

 - 10-5-0.PDF