Message-ID: <12425612.1075851593411.JavaMail.evans@thyme> Date: Mon, 20 Aug 2001 18:24:42 -0700 (PDT) From: d..steffes@enron.com To: jeff.dasovich@enron.com, harry.kingerski@enron.com, susan.mara@enron.com Subject: Going Forward California Costs - Future Revenue Reqts Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: Steffes, James D. X-To: Dasovich, Jeff , Kingerski, Harry , Mara, Susan X-cc: X-bcc: X-Folder: \Dasovich, Jeff (Non-Privileged)\Dasovich, Jeff\Deleted Items X-Origin: DASOVICH-J X-FileName: Dasovich, Jeff (Non-Privileged).pst I wanted to make sure that everyone is on the same page related to utility costs in California. These costs may be (will be?) collected from some utility customer, potentially including direct access customers. Bucket #1 Utility Undercollection Feb 1, 2000 Through Jan 18, 2001 About $12.0 Billion (this money includes our Negative CTC amounts). Should be financed through corporate debt. No securitization. Enron's Position: Bundled service on Jan 1, 2001 pays fixed c/kwh Bucket #2 CDWR Cost from Jan 5, 2001 through Bond Issuance or March 31, 2002 About $12.5 Billion (about $10 Billion for spot purchases and $2.5 Billion for long-term buys) Enron's Position: Dedicated Rate Component (DRC) for all residential and small customers. Larger customers are assigned direct responsibility for the Undercollection on c/kwh. Balancing account for holding Utility even. Bucket #3 Prospective Generation Costs for Bundled Service Post March 31, 2002 URG = $40/mwh (retained generation and bilateral contracts) CDWR = $120/mwh QF = $100/mwh TOTAL = URG*%sales + CDWR*%sales + QF*%sales = $90/mwh Bucket #4 AB1890 Non-Generation Stranded Costs Bucket #5 AB1890 Generation Stranded Costs