Subject: FW: Draft Decision on Retroactive Suspension of Direct Access--Judge Proposes Retroactive Suspension Date: July 1,2002, and other onerous terms
From: [email-masked]
To: [email-masked]
Cc: [email-masked]
Date: Tue, 29 Jan 2002 08:51:14 -0800 (PST)

Dave, this proposed ruling by the CPUC drastically reduces the value of the California power commodity contracts.  There is a meeting at 11am in EB911 to discuss.  I'll let you know how it works out.  Jay

-----Original Message-----
From: Ralston, Andrew 
Sent: Tuesday, January 29, 2002 10:10 AM
To: Hachen, James
Subject: FW: Draft Decision on Retroactive Suspension of Direct
Access--Judge Proposes Retroactive Suspension Date: July 1,2002, and
other onerous terms

-----Original Message-----
From: Maynard, Michelle 
Sent: Monday, January 28, 2002 4:29 PM
To: Ralston, Andrew
Subject: FW: Draft Decision on Retroactive Suspension of Direct
Access--Judge Proposes Retroactive Suspension Date: July 1,2002, and
other onerous terms

-----Original Message-----
From: Smith, Mike D. 
Sent: Monday, January 28, 2002 3:39 PM
To: [email-masked]'; Maynard, Michelle; Keller, James E.; Darmitzel,
Paul; Higgason, Kelly; Essandoh, Edwin; Freed, Richard
Subject: FW: Draft Decision on Retroactive Suspension of Direct
Access--Judge Proposes Retroactive Suspension Date: July 1,2002, and
other onerous terms

UGH

-----Original Message-----
From: Dasovich, Jeff 
Sent: Monday, January 28, 2002 3:36 PM
To: Blachman, Jeremy; Delainey, David W.; Steffes, James D.; Tribolet,
Michael; Mellencamp, Lisa; Leff, Dan; Schwarz, Angela; Frazier, Lamar;
Hughes, Evan; Huddleson, Diann; Dietrich, Janet; Belden, Tim; Comnes,
Alan; Calger, Christopher F.; Parquet, David; Sharp, Vicki; Smith, Mike
D.
Subject: FW: Draft Decision on Retroactive Suspension of Direct
Access--Judge Proposes Retroactive Suspension Date: July 1,2002, and
other onerous terms

FYI. Please forward to others who need this info. 

As the market expected, the judge issued what arguably is a worst case scenario.  Recall that this is a judge's recommendation (working with Kommissioner Karl Wood).  The full commission will vote on it and two other commissioners will have to agree wtih Karl for the recommendation to stick (i.e., it takes 3 votes).

Somewhat surprising, the Commission is giving folks till February 1 to comment and have scheduled  the decision for a vote on February 7th.  I assume that the market will object fairly strongly to this schedule.

We'll be checking with other market participants to see how folks intend to attack the decision. If you have questions, let me know.

Best,
Jeff

-----Original Message-----
From: JBennett [mailto:[email-masked]]
Sent: Monday, January 28, 2002 3:22 PM
To: [email-masked]; [email-masked]; Steffes, James D.; Jeff Dasovich
(E-mail)
Subject: Draft Decision on Retroactive Suspension of Direct Access

On January 25, 2002, ALJ Barnett issued a draft decision establishing a
retroactive suspension date for direct access, and strictly limiting the
provisions in contracts executed prior to the suspension date.
Specifically, the draft order provides the following:

1. DA contracts executed after June 30, 2001 are suspended until DWR no
longer supplies power under AB 1X.

2.  DA contracts executed prior to July 1, 2001 "pursuant to which
electricity flowed prior to July 1, 2001", are not suspended, but are
subject to certain restrictions.

3. The following are the restrictions placed on direct access contracts
executed prior to July 1, 2001:

	a. No customer is allowed to switch from one ESP to another after
June 30, 2001.  

	b.  No customer is allowed to add a new location to its direct
access contract after June 30, 2001.

	c. No direct access contract may be extended beyond its initial
termination date as fixed prior to July 1, 2001.

	d.  Direct access contracts may not be assigned after June 30, 2001.

	e.  A  customer who had direct access prior to July 1, 2001, but who
became a bundled customer cannot return to direct 	access after June
30, 2001.  

The UDCs are given ninety days from the date of the order to terminate all
direct access contracts not in conformity with the order and return those
customers to bundled service.

Comments on the draft decision must be filed by February 1 (no reply
comments allowed). The Commission will vote on the decision at its February
7th meeting.

If you have any questions, please contact me.

Jeanne Bennett