Transmission Data/PG&E and SCE

Facts for talking points:

Transmission net plant (as of 1999):
PG&E, $1.43 B
SCE, $1.90 B

Distribution net plant (as of 1999):
PG&E, $6.58 B
SCE, $4.88 B

Total costs (revenue requirement) for Transmission (1999):
PG&E, $0.40 B includes return on capital (0.12B), taxes, depreciation, o&m
(0.10B)
SCE, $0.57 B includes return on capital (0.15B), taxes, depreciation,
o&m (0.21B)

Transmission costs as % of total utility costs (1999):
PG&E, 5%
SCE, 7%

Securitization of entire transmission revenue stream creates maybe $20
million annually of additional head room for the 2 utilities (2% of $1B),
plus whatever tax effects may accrue from state vs. private ownership.

A 50% premium to book value purchase generates a $1.7 B combined windfall to
utilities, before tax effects, or about 15% of the under-recovered amounts of
$13 B.

Alan and I will work on refining these messages.