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Enron Mail |
As you are probably aware, the CPUC voted 5-0 to reject instituting retail
rate caps in San Diego and instead adopted SDG&E's proposal to refund over $100 million. The Commission also approved SCE and PG&E's motion to enter into bilateral agreements and schedule those transactions through the PX using the bilateral-option market. These transactions will be confidential and will be disclosed only to the Commission's energy division, for purposes of reasonableness. The Commission did not act upon San Diego's advice letter (#1242) to facilitate customer awareness of competitive alternatives. That advice letter will not be acted upon until the next Commission meeting in September. The Commission has also opened an investigation into the role of the utility as a default provider and will explore how the utility should pass along its costs to the customers. It will also address whether SDG&E should be authorized to participate in bilateral contracts in addition to PX purchases. It also opens the door to consider alternative exchange. This is a fast track investigation, so I will set up a call to discuss early next week. Sandi McCubbin and I were in Sacramento yesterday meeting with several of the key legislative offices. There was also an interested party meeting (AB 1890 Implementation Group). From those meetings, it was apparent that Steve Peace is interested in legislation to institute rate caps in San Diego, re-vamp the governance structure of the ISO and PX boards, having market participants (generators, marketers, utilities) share in some of the pain that San Diego's consumers feel, extend the rate freeze, etc. Although, most of the other legislative offices saw this proposal as a total morass. The legislative offices that we met with, while interested in providing some political cover to DeDe Alpert (Senator from San Diego in a close political race), were not interested in pursuing sweeping changes to the current structure, although this could change. However, it should be noted that DeDe Alpert said herself that she would introduce rate cap legislation in San Diego when the legislature reconvenes on August 7. Most of the discussion with the other offices was on what can be done by next summer and focused on bringing on peaking plants and expanding demand responsive programs. Sandi and Dave Parquet also met with John Stevens, of the Governor's Office. He stated that the Governor did not want any major changes to the current structure to come across his desk, but that the Governor needed our help in preventing such changes from getting there, otherwise he may be politically compelled to sign the legislation. Sandi will send out more information later, she's having computer problems. There will be a hearing next week of the Senate and Assembly Energy Committees on San Diego issues on August 10. We, in GA, will keep you updated on developments.
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