Air Liquide et al v. PSE 

        Formal Complaint - Docket UE-001952 

        This week, the Commission is hearing evidence regarding the level of 
a "soft
        cap" on prices PSE charges some large customers. 

        On January 26, Public Counsel and Commission Staff filed a joint 
answer on
        the rate cap mechanism. 

        On Jan. 22, the UTC approved a temporary "soft-price" cap for power 
rates
        paid by 13 large industrial customers of Puget Sound Energy (PSE). A
        short-term soft cap would allow PSE to charge above the cap for power 
costs
        if the utility was paying more than a maximum level. 

        The order calls for a second set of proceedings to establish the 
level of the
        temporary soft cap as a term under the provisions of Schedule 48 and 
the
        PSE/Georgia-Pacific Special Contract. The cap would be in place 
pending
        further proceedings to determine a final disposition of Schedule 48. 

        Puget's 13 large industrial customers are: Boeing, Georgia-Pacific, 
Air Liquide
        America Corp. CNC Containers, Equilon Enterprises, Air Products and
        Chemicals, Inc., Tesoro Northwest, City of Anacortes, Intel Corp., 
King
        County's Metro Wastewater Treatment Division, Olympic Pipe-Bayview,
        Qwest and MCI WorldCo