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Enron Mail |
On Friday, June 15th, a Draft Decision (by ALJ Barnett) and an Alternate
Decision (by Commissioner Bilas) were released addressing the suspension of the PX credit and the suspension of direct access. In short, both the Draft and the Alternate granted SCE's Petition to suspend payment of the PX credit as of January 5, 2001. The Draft Decision continues by invoking Section 80110 of the Water Code (enacted under ABX1 1) and suspending new Direct Access transactions as of July 1, 2001. The Alternate does not suspend direct access but requests comments on how the Commission can accommodate the concerns of DWR with respect to continuation of direct access (besides suspension) without violating Section 80110. Barnett Draft Decision The Barnett draft goes through an illustration of the PX credit with the intent of showing that during the rate freeze period "should a direct access customer pay less than the PX energy price to its ESP, the direct access customer is being subsidized by the public utility and, perhaps the utility's ratepayers." The decision goes on to say, that "we note in the stipulation between SCE, Enron and WPTF, there is no mention of a cash refund to direct access customers -- the reference is to a credit." There is no provision in the stipulation which would require SCE to make a cash payment in lieu of a credit. "Utility cash which is in short supply, should be conserved to provide reliable service, not subsidize direct access." The draft decision continues by suspending DA as of July 1, 2001 and applying the order to PG&E as well. Bilas Alternate The Bilas Alternate goes through a similar analysis with respect to the PX credit payments (without as much verbiage as to the subsidization of DA customers). Bilas also makes it clear that while payment of cash is suspended, "SCE must continue to track and accrue credits for DA customers." With respect to the suspension of direct access, the Bilas Alternate holds off. It appends a letter from DWR to the Commission as to its concerns about the impact of the continuation of Direct Access on the issuance of the bonds and asks parties to comment thereon. It is letter, DWR has set forth what it believes will be required in the way of exit fees by DA customers to allow the issuance of long term bonds with investment grade. In addition, Bilas is looking for comments on getting away from the PX credit and going to a bottoms up calculation of DA customer bills. Comments Comments on Both the Draft and Alternate are due on Monday the 25th. Comments on moving to a bottoms up approach are due on July 6th. Copies of the decisions have been faxed to Sue Mara in SF and Jim Steffes in Houston. They are also available on the commission's web site under the "currently open for comment" section. If anyone would like me to fax them a copy directly, let me know. Jeanne Bennett
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