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Enron Mail |
SDGE's Advice Letter filing confirms that the ABX143 rate freeze of 6.5 cents
does not apply to direct access. In hearings on SDGE's potential rate increase for large customers: SDGE has proposed to allocate all retained generation to small customers (below 100 kw). Large customers would be served by DWR (or be direct access). It's apparent several parties have major problems with this. It is interesting that SDGE has calculated the expected rate increase under their plan as 2.86 cents. If large customers are allocated a piece of retained generation, the increase goes up to 2.99 cents. In the latter case, large customers retain a CTC (related to QF contracts and other long term stranded costs) that they would lose in the former case. Our involvement is to get an order 1) excluding DA from any rate increase (the proposed 2.86 cents) 2) excluding DA from any surcharge related to undercollection from the rate freeze (an amount that is not known at this point) 3) prorating the surcharge related to undercollection if the customer switches from DA to bundled service during the rate freeze period 4) ensuring there is a return to market pricing once the rate freeze is over. PUC decisions on these issues are expected June 28. There is no discussion of restricting movement between bundled service and DA. On our issues noted above, #1, 2, 4 have high probability of success; # 3 is 50/50.
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