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Date: Wed, 19 Apr 2000 06:39:00 -0700 (PDT)
From: bruno.gaillard@enron.com
To: jeff.dasovich@enron.com
Subject: DG Phase 2 Scoping Memo
Cc: susan.mara@enron.com, susan.landwehr@enron.com, james.steffes@enron.com, 
	robert.frank@enron.com, mona.petrochko@enron.com, 
	harry.kingerski@enron.com, joe.hartsoe@enron.com, 
	tom.delaney@enron.com
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Phase 2 testimony is due May 26, 2000 and addresses rate design issues 

Rate design and ratemaking proposals submitted in testimony should follow the 
principles: 
1. provide for fair cost allocation among customers;

2. allow the utility distribution companies (UDCs) adequate cost recovery 
while minimizing costs to consumers; 

3. facilitate customer-side distributed generation deployment; and send 
proper price signals to prospective purchasers of distributed generation. 

Testimony should identify how current rate structures and those proposed in 
other Commission proceedings may prevent or hinder deployment of distributed 
generation, and how rate structures could be modified to facilitate 
distributed generation deployment.  Parties should discuss the 
interrelationship among rate design issues:  stranded costs, bypass, demand, 
customer and grid charges, standby rates, and PBR and flexible pricing 
mechanisms.
Additionally, rate design issues related to interconnection costs should be 
addressed.  Issues include cost recovery and allocation, such as who should 
pay for costs to interconnect to the distribution system and for 
interconnection studies, or if costs incurred by the first distributed 
generation customers on a specific circuit or feeder should be shared by 
subsequent distributed generation customers connecting to the same facilities.

The attachment (Attachment A) provides 36 questions and a framework for the 
issues the Commission will consider in Phase 2 of this proceeding.  

See attached ruling for details.