Message-ID: <2964527.1075861467715.JavaMail.evans@thyme> Date: Thu, 27 Sep 2001 18:06:02 -0700 (PDT) From: jeff.dasovich@enron.com To: jeff.dasovich@enron.com Subject: Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Dasovich, Jeff X-To: Dasovich, Jeff X-cc: X-bcc: X-Folder: \JDASOVIC (Non-Privileged)\Dasovich, Jeff\Deleted Items X-Origin: Dasovich-J X-FileName: JDASOVIC (Non-Privileged).pst Here's a cut at the taxonomy of regulatory risks associated with Direct Access. Please let me know if there are others I missed, or if there are changes needed to the ones listed. 1. Retroactive Suspension of DA Contracts: The PUC rules in a subsequent decision that DA is suspended on some date between July 1 and September 20th. 2. Contract renewal forbidden: The PUC includes contract renewal under the suspension of DA. 3. No incremental "DASR'ing": The PUC includes incremental additions and subtractions of DA customer's load under the suspension of DA (e.g., fast food chains, University campus) 4. Cost allocation: the PUC adds new costs to DA accounts and/or disproportionately shifts existing costs to DA accounts. Costs with greatest risk of being shifted to DA customers include: IOU undercollection, bonds to repay the state general fund, and DWR contracts. The costs associated with these categories are substantial. Key risks associated with each category: Adverse to P/L Adverse to hedge (demand risk)