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From:jennifer.rudolph@enron.com
To:ca.team@enron.com
Subject:CPUC DRAFT DECISIONS RELEASED --Rate design for 3 cent Rate
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Date:Thu, 10 May 2001 11:00:00 -0700 (PDT)

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* from Govt Affairs
* DA customers are exempt from both plans

---------------------- Forwarded by Jennifer Rudolph/HOU/EES on 05/10/2001
05:59 PM ---------------------------


Susan J Mara@ENRON
05/10/2001 04:23 PM

Apologies to those who already got this from Harry.

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 05/10/2001 02:20 PM -----

Harry Kingerski
05/10/2001 12:31 PM



CORRECTION - last line, Monday, May 14



Harry Kingerski
05/10/2001 01:16 PM



2 proposed decisions were released last night by the California PUC - one by
the Judge and one by Chairman Lynch.

Direct access customers are exempt from the surcharge.
Each customer class is allocated an equal 3 cents, plus an amount to cover
the shortfall from having residential usage up to 130% of baseline exempt
from the surcharge (as required by law). Each decision allocates a
substantial portion of the subsidy to non-residential classes, although Lynch
does this to a lesser extent
The new rates become effective June 1, and the shortfall from the actual
effective date of the increase, March 27, through June 1 will be amortized
over 12 months.
Residential rate design - 5 tiers will be put in place; the 5th tier (300+%
of baseline) gets a 35 cent per kwh rate
Non-residential rate design - recommendations to put all of the increase into
summer on-peak were rejected. About 60% of increase put into summer.
Real Time Pricing was endorsed - will further explore in workshops starting
later in May. Voluntary program will be started.
In a vindictive outlash, Lynch decision requires federal facilities to pay
market prices under new schedules to be developed by the utilities
Judge's decision seems to require surcharge to show up as a separate line
item; Lynch's decision requires that it not be shown separately

Oral argument occurs Friday and final decision is expected to be voted out
Monday, June 14.