Summary - SCE's Rate Stabilization Plan ,
 Below is a summary of SCE's Rate Stabilization Plan.  In addition, PG&E filed 
a plan on 11/22.  The major components of the plan are:

1.  Rate freeze ended 8/21/00.  New rates go into place 1/1/01.
2.  Rates for wholesale costs would be capped 6.5 cents/kWh for 5 years.  
This would allow PG&E to amortize its undercollection under the 6.5 cent 
cap.  
3.  PG&E proposes that the undercollection is recovered from all customers, 
including DA.  
4.  Rate stabilization would apply to all except E-19, E-20 and E-25, who 
will have an opt-in ability.  

I also wanted to let everyone know that I will be moving from doing energy 
issues to broadband issues.  Jeff Dasovich and Marcie Milner will be the GA 
contacts prospectively on energy issues in Ca.  

It has been my pleasure to have worked with all of you over the past several 
months.  All the best.

Mona
---------------------- Forwarded by Mona L Petrochko/NA/Enron on 11/29/2000 
08:53 PM ---------------------------


bchen@newenergy.com (Bill Chen) on 11/20/2000 07:41:59 PM
To: arm@phaser.com
cc:  

Subject: Summary - SCE's Rate Stabilization Plan


All,

Here's a brief summary of SCE's Rate Stabilization Plan (RSP) Application
filed on Nov. 16, 2000.

SCE makes the following requests:

1.  CPUC determination that SCE's statutory rate freeze ended no later
than August 31, 2000 based on the CPUC's interpretation, in Decision No.
99-10-057, of AB 1890 that the "end of the rate freeze will be determined
to have occurred on the date a zero balance in the TCBA first occurred."
SCE claims its TCBA balance reached zero no later than August 31, 2000;

2.  Effective January 1, 2001 through June 30, 2001, an interim 9.9% rate
increase on top of the current frozen rate.  The rate increase would be
subject to refund to allow any generator refunds ordered by FERC to be
passed on to customers, if SCE is recovering its TRA undercollection after
the end of the transition period.  The new generation charge would be
called the "Procurement Recovery Charge" (PRC) and SCE's procurement costs
would be recorded in a new balancing account, the "Energy Cost Balancing
Account" (ECBA);

3.  CPUC to bifurcate SCE's RSP app into two phases:  In Phase I, CPUC to
issue a decision on December 21, 2000 relative to the interim rate
increase; and in Phase II, CPUC to hold evidentiary hearings to determine
a final adopted rate increase effective July 1, 2001 through December 31,
2002, and issues related to SCE's ongoing role in the post-transition
period such as 1) its role as default provider of energy, 2) its role in
providing energy if it isn't the default provider, 3) any limitation on
its procurement practices if it retains responsibility for procuring
energy for bundled customers, 4) the manner in which its procurement costs
would be passed through to customers, 5) reasonableness reviews of its
procurement practices, 6) establishment of reasonable customer obligations
consistent with its obligation to procure long-term power on customers'
behalf, 7) its role in providing revenue cycle services and the matter in
which such costs would be recovered, 8) resolution of its divestiture
applications and 9) its ownership of future generation, peaking or
baseload.  At the conclusion of the evidentiary hearings, if the CPUC
adopts a lower rate increase, SCE would refund, with interest, the
difference between the interim rate increase and the final, adopted rate
increase;

4.  RSP to include a trigger mechanism allowing for rate increases and/or
decreases beginning January 1, 2003 which SCE claims is necessary to
address its uncertainty relative to future procurement costs.  Beginning
January 1, 2003, if the undercollected balance in the ECBA exceeds $1
billion, SCE will file an advice letter increasing total rate levels by
2.5 percent and adjusting the PRC accordingly.  This process will be
repeated every six months until the undercollected balance drops below $1
billion.  However, in the event that the undercollection ever becomes
greater than $2 billion, SCE reserves the right to modify the percentage
increase to achieve a three-year amortization of the balance.  Conversely,
if the ECBA balance becomes overcollected by $200 million or more, SCE
will file an advice letter reducing total rate levels by 2.5 percent and
adjusting the PRC accordingly.  This process will also be repeated every
six months until the overcollection is less than $200 million;

5.  Since SCE claims that the rate freeze has ended, it also requests that
the TRA be eliminated, effective January 1, 2001, and that the "Deferred
Energy Cost Balancing Account" (DECBA) be established in its place.  SCE
requests that the TRA balance (as of Sept. 30, 2000, SCE maintains that
the undercollection balance is $2.4 billion) be transferred to the DECBA
and that the balance be amortized over a five-year period; and

6.  That the PRC will be applied to all customers, including Direct Access
customers, since "Direct Access customers have received larger PX Credits
that resulted from the high energy costs that created the undercollection
in the TRA."

Bill Chen
925.287.4703



 - RSP App, 11-6-00.pdf
 - RSP TEST.pdf
 - SERVICE.PDF
gary.mirich@enron.com, george.waidelich@enron.com, john.woodman@enron.com, 