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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
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