Message-ID: <33234703.1075844238723.JavaMail.evans@thyme> Date: Thu, 10 May 2001 06:16:00 -0700 (PDT) From: harry.kingerski@enron.com To: wanda.curry@enron.com, james.lewis@enron.com, mike.smith@enron.com, don.black@enron.com, scott.stoness@enron.com, diann.huddleson@enron.com, jklauber@llgm.com, vicki.sharp@enron.com, marcus.dotson@enron.com Subject: Rate design for 3 cent Rate increase for PGE/SCE Cc: james.steffes@enron.com, leslie.lawner@enron.com, susan.mara@enron.com, jeff.dasovich@enron.com, sandra.mccubbin@enron.com, paul.kaufman@enron.com, robert.neustaedter@enron.com, richard.shapiro@enron.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit Bcc: james.steffes@enron.com, leslie.lawner@enron.com, susan.mara@enron.com, jeff.dasovich@enron.com, sandra.mccubbin@enron.com, paul.kaufman@enron.com, robert.neustaedter@enron.com, richard.shapiro@enron.com X-From: Harry Kingerski X-To: Wanda Curry, James W Lewis, Mike D Smith, Don Black, Scott Stoness, Diann Huddleson, jklauber@llgm.com, Vicki Sharp, Marcus Dotson X-cc: James D Steffes, Leslie Lawner, Susan J Mara, Jeff Dasovich, Sandra McCubbin, Paul Kaufman, Robert Neustaedter, Richard Shapiro X-bcc: X-Folder: \Richard_Shapiro_June2001\Notes Folders\Discussion threads X-Origin: SHAPIRO-R X-FileName: rshapiro.nsf 2 proposed decisions were released last night by the California PUC - one by the Judge and one by Chairman Lynch. Direct access customers are exempt from the surcharge. Each customer class is allocated an equal 3 cents, plus an amount to cover the shortfall from having residential usage up to 130% of baseline exempt from the surcharge (as required by law). Each decision allocates a substantial portion of the subsidy to non-residential classes, although Lynch does this to a lesser extent The new rates become effective June 1, and the shortfall from the actual effective date of the increase, March 27, through June 1 will be amortized over 12 months. Residential rate design - 5 tiers will be put in place; the 5th tier (300+% of baseline) gets a 35 cent per kwh rate Non-residential rate design - recommendations to put all of the increase into summer on-peak were rejected. About 60% of increase put into summer. Real Time Pricing was endorsed - will further explore in workshops starting later in May. Voluntary program will be started. In a vindictive outlash, Lynch decision requires federal facilities to pay market prices under new schedules to be developed by the utilities Judge's decision seems to require surcharge to show up as a separate line item; Lynch's decision requires that it not be shown separately Oral argument occurs Friday and final decision is expected to be voted out Monday, June 14.