Message-ID: <33546600.1075846350947.JavaMail.evans@thyme> Date: Sun, 27 Aug 2000 02:16:00 -0700 (PDT) From: james.wood@enron.com To: mona.petrochko@enron.com Subject: Re: Draft Legislative Language Cc: dennis.benevides@enron.com, edward.hamb@enron.com, martin.wenzel@enron.com, douglas.condon@enron.com, chris.hendrix@enron.com, gary.mirich@enron.com, jennifer.rudolph@enron.com, peggy.mahoney@enron.com, richard.shapiro@enron.com, james.steffes@enron.com, harry.kingerski@enron.com, steven.kean@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: dennis.benevides@enron.com, edward.hamb@enron.com, martin.wenzel@enron.com, douglas.condon@enron.com, chris.hendrix@enron.com, gary.mirich@enron.com, jennifer.rudolph@enron.com, peggy.mahoney@enron.com, richard.shapiro@enron.com, james.steffes@enron.com, harry.kingerski@enron.com, steven.kean@enron.com X-From: James M Wood X-To: Mona L Petrochko X-cc: Dennis Benevides, Roger Yang@ENRON, Edward Hamb, Martin Wenzel, Douglas Condon, Greg Cordell@ENRON, Chris Hendrix, Gary Mirich, Jennifer Rudolph, Karen Denne@Enron, Peggy Mahoney, West GA@ENRON, Mary Hain@Enron, Richard Shapiro, James D Steffes, Harry Kingerski, Steven J Kean X-bcc: X-Folder: \Steven_Kean_Dec2000_1\Notes Folders\Heat wave X-Origin: KEAN-S X-FileName: skean.nsf Mona, Although the option provision with true-up is better than a rate cap but I fear this will lead to more confusion in the market place, a price that may be below market today which will foster the do nothing attitude. I fear that customers given a choice will take the I will pay you later Vs paying you now approach. The administrative issues this creates are also tremendous. I would rather give on the residential option for the commission to extend another year vs agreeing to the opt in provision. Mona L Petrochko@ENRON 08/25/2000 08:41 PM To: Dennis Benevides/HOU/EES@EES, Roger Yang, Edward Hamb/HOU/EES@EES, James M Wood/HOU/EES@EES, Martin Wenzel/SFO/HOU/EES@EES, Douglas Condon/SFO/EES@EES, Greg Cordell, Chris Hendrix/HOU/EES@EES, Gary Mirich/HOU/EES@EES, Jennifer Rudolph/HOU/EES@EES, Karen Denne@Enron, Peggy Mahoney/HOU/EES@EES cc: West GA, Mary Hain@Enron, Richard Shapiro/HOU/EES@EES, James D Steffes/HOU/EES@EES, Harry Kingerski/HOU/EES@EES, Steven J Kean/NA/Enron@Enron Subject: Draft Legislative Language We have seen an early release of legislative language. It is SB 1433 Alpert/Davis. 1. It institutes a rate cap of 6.5 cents/kWh for residential and small commercial retroactive to June 2000 through December 31, 2002. It leaves the ability for the Commission to extend to 2003 if in the public interest. (We will strike the last part.) Small commercial customers are all accounts on Schedule A, all accounts who are general acute care hospitals, public and private k-12 schools and all accounts on AL-TOU (up through 6000 kWh/billing period) 2. Provides an opt-in provision for large commercial/agricultural/industrial customers with an annual true-up. The sense I got was that CMTA/CLECA may have asked for this. It gives legislative cover. Will be difficult to administer and the true-up will discourage sign up. Please let me know if you agree. 3. Provides that overcollections of PPA/QFs/SONGs will be used to offset undercollections of cap. Our comment is that the overcollections, on a pro-rata basis will be used to offset the cap. All customers pay stranded costs associated with those contracts, all customers should receive stranded benefits. 4. SDG&E is still subject to reasonableness review by the Commission. To the extent FERC orders refunds as part of its investigation, such refunds will go to SDG&E's customers. Not too bad.