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From:tamara.johnson@enron.com
To:scott.stoness@enron.com
Subject:prelim numbers on expected generation cost increases for CA bundled
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Date:Tue, 13 Feb 2001 02:18:00 -0800 (PST)

Cc: harry.kingerski@enron.com, jeff.dasovich@enron.com, susan.mara@enron.com
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The impact on the book for the PG&E and SCE increases described below would be

April to December 2001: $86.9 million ($38.8 mm PG&E; $48.1 mm SCE)
For whole book, $195 million (PV).

/Tamara.

---------------------- Forwarded by Tamara Johnson/HOU/EES on 02/13/2001
10:15 AM ---------------------------


Tamara Johnson
02/13/2001 10:16 AM
To: Scott Stoness/HOU/EES@EES
cc: Marcus Dotson/HOU/EES@EES, Jodi Thrasher/HOU/EES@EES, Yasir
Khan/HOU/EES@EES, Greg Cordell/HOU/EES@EES
Subject: prelim numbers on expected generation cost increases for CA bundled
rates

I have reviewed the preliminary drafts by the 3 CA IOU's with respect to
required generation purchases.

My analysis shows that bundled customers would need to see the following
increase in the generation portion of their bundled rate to pay for the
shortfall (increase above the $10/MWh). I used $90/MWh as an average rate
for the DWR purchases.

PG&E $12/MWh
SCE $23/MWh

Note that this does not recover any past undercollections for previously
purchased energy. PG&E is proposing an adder of $7/MWh for undercollections.

For SDG&E, the currently rate-capped customers (at $65/MWh) would need to see
a $43/MWh increase.