DO YOU FEEL SORRY FOR PG&E ,
 The following is a summary of PG&E's CTC recovery:





So do you still feel sorry for PG&E.  Through July 2000, PG&E ratepayes have 
paid for $3.9 billion in CTCs and PG&E shareholders face the risk of $1.1 
billion.  Even if the ratepayers number gets reduce to $2.5 billion and the 
shareholders number increases to $2.5 billion, should Californians feel bad 
that they paid off half of PG&E's CTCs in exchange for frozen rates through 
2001?  Although procurement costs are increasing, so are generation revenues 
for hydro, nuclear, and QF contracts.  Additionally, what is the correct 
value of hydro and nuclear assets.  If nuclear and hydro are valued correctly 
and PG&E locks in next years prices, perhaps PG&E's shareholder may only be 
at risk for $0 to 1 billion?  Would an 80/20 split between ratepayers and 
shareholders for CTC liability be unreasonable?  Afterall, (1) PG&E has 
delayed hydro valuation with its antics when they expected to overcollect 
CTCs, (2) PG&E has been requesting astonishing increases to its T&D rates 
which has resulted in squeezing headroom, and (3) PG&E chose the timing and 
its assets to divest without hedging the risks; not to mention things like 
irresponsibly telling customers to expect rate decreases despite their GRC 
request.

Roger
susan.mara@enron.com, mona.petrochko@enron.com, jeff.dasovich@enron.com, 