Message-ID: <14801118.1075843836892.JavaMail.evans@thyme>
Date: Thu, 28 Dec 2000 11:12:00 -0800 (PST)
From: jeff.dasovich@enron.com
To: mday@gmssr.com
Subject: Cross-Examination
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----- Forwarded by Jeff Dasovich/NA/Enron on 12/28/2000 07:12 PM -----

	Roger Yang@EES
	12/28/2000 05:32 PM
		 
		 To: Jeff Dasovich/NA/Enron@Enron, Scott Stoness/HOU/EES@EES
		 cc: 
		 Subject: Cross-Examination

PG&E

On page 5-3 in Chapter 5 Supplemental Testimony, PG&E states, "Decision 
97-05-088 also provides that, following the end of the ICIP rate, Diablo 
Canyon shifts to a sharing mechanism under which benefits from generation 
would be shared with ratepayers through divestiture, appraisal or profit 
sharing."  Is this interpretation predicated on an end to the rate freeze?  
PG&E also states, "PG&E's proposal in the RSP for Diablo Canyon is to defer 
its 50 percent share of market revenues for two years and to apply all market 
revenues in excess of ICIP to the UCSA.  PG&E proposed to track in the 
'Diablo Canyon Deferred Debit Account ('GDDA') the shareholder revenues 
(including interest) provided to ratepayers during this two-year period so 
that they may be recovered from market revenues in years three through 
five."  What "reasonably-based market price benchmark" does PG&E propose to 
rely upon?  Based on PG&E's forward view of this benchmark for the next two 
years, what is PG&E's estimate of the 50 percent shareholder share of 
foregone market revenues that will be tracked?  On page 2-2 in Chapter 2 
Supplemental Testimony, PG&E refers to an estimated average spot power market 
price of over $180 per MWH for 2001, using this price what would PG&E's 
shareholders 50% share be for 2001?  What if it is assumed a 17 million mWh 
output, the sunk costs are recovered, and a going forward operating cost of 
$20 per mWH?  (The answer would be in excess of $1.3 billion)  Is this share 
calculated on a before- or  after-tax basis?  Does the amount that would 
receive deferred recovery be income for PG&E?

In Chapter 2 Errata and Update Testimony, PG&E proposes a "rate 
stabilization" policy.  PG&E is currently proposing to raise rates in January 
2001.  Within the next two years, are there any other factors that will cause 
rates to increase?  Can rates increase for transmission rates currently filed 
at FERC?  Can rates increase for increases to distribution rates?  How 
frequently could rates change under PG&E's proposed "trigger mechanism".

In Chapter 2 Testimony, PG&E also proposes to establish a "Unrecovered Cost 
of Service Account Rate" and in Chapter 6 Testimony proposes to recover 
ongoing CTC from all customers.  How will Direct Access customers receive the 
stranded benefits from retained generation (hydro, nuclear, and fossil) as 
well as potential stranded benefits from QF energy?

SCE

Footnote 2 In Chapter 4 Amended Testimony, " SCE states, "Reflects ending 
August 31, 2000 balance plus interest calculated through December 31, 2000.  
This footnote references going-gorsward account transfers of $666 million 
used to calculate the estimated TCBA balance on December 31, 2000.  Is this 
balance used to calculate SCE's "Deferred Energy Cost Adjustment Rate"?  Why 
does SCE exclude amounts from beginning September 1, 2000?  What is the value 
of the excluded amounts?  Is it SCE's position that going forward revenues 
from retained generation assets