summary socal edison mou announced today 4 9 01 agreement principle still need negotiate definitive contracts many parties still agree proposed solution final including legislature looks good sce jim forwarded james steffes na enron 04 09 2001 07 03 pm jeff dasovich 04 09 2001 07 00 pm sent jeff dasovich alan comnes pdx ect ect angela schwarz hou ees ees beverly aden hou ees ees bill votaw hou ees ees brenda barreda hou ees ees carol moffett hou ees ees cathy corbin hou ees ees chris h foster hou ect ect christina liscano hou ees ees craig h sutter hou ees ees dan leff hou ees ees debora whitehead hou ees ees dennis benevides hou ees ees black hou ees ees dorothy youngblood hou ect ect douglas huth hou ees ees edward sacks corp enron enron eric melvin hou ees ees erika dupre hou ees ees evan hughes hou ees ees fran deltoro hou ees ees gayle w muench hou ees ees ginger dernehl na enron enron gordon savage hou ees ees harold g buchanan hou ees ees harry kingerski na enron enron iris waser hou ees ees james steffes na enron enron james w lewis hou ees ees james wright western region bentley company exchange jeff messina hou ees ees jeremy blachman hou ees ees jess hewitt hou ees ees joe hartsoe corp enron enron karen denne corp enron enron kathy bass hou ees ees kathy dodgen hou ees ees ken gustafson hou ees ees kevin hughes hou ees ees leasa lopez hou ees ees leticia botello hou ees ees mark muller hou ees ees marsha suggs hou ees ees marty sunde hou ees ees meredith eggleston hou ees ees michael etringer hou ect ect michael mann hou ees ees michelle cisneros hou ect ect mpalmer enron com neil bresnan hou ees ees neil hong hou ees ees paul kaufman pdx ect ect paula warren hou ees ees richard l zdunkewicz hou ees ees richard leibert hou ees ees richard shapiro na enron enron rita hennessy na enron enron roger yang sfo ees ees rosalinda tijerina hou ees ees sandra mccubbin na enron enron sarah novosel corp enron enron scott gahn hou ees ees scott stoness hou ees ees sharon dick hou ees ees skean enron com tanya leslie hou ees ees tasha lair hou ees ees ted murphy hou ect ect terri greenlee na enron enron tim belden hou ect ect tony spruiell hou ees ees vicki sharp hou ees ees vladimir gorny hou ect ect wanda curry hou ees ees william bradford hou ect ect kathryn corbally corp enron enron jubran whalan hou ees ees triley enron com richard b sanders hou ect ect robert c williams enron _ development enron _ development greg wolfe hou ect ect james wright western region bentley company exchange dirk vanulden western region bentley company exchange steve walker sfo ees ees jennifer rudolph hou ees ees martin wenzel sfo hou ees ees douglas condon sfo ees ees wgang enron com scott govenar hedy govenar enron jklauber llgm com mike smith hou ees ees john neslage enron _ development enron _ development janel guerrero corp enron enron eric letke dub ees ees richard b sanders hou ect ect gfergus brobeck com michael tribolet enron enronxgate robert frank na enron enron richard b sanders hou ect ect gfergus brobeck com susan j mara na enron enron mercy gil enron enronxgate jennifer thome na enron enron david leboe hou ect ect cc subject summary mou following outline basic terms southern california edison memorandum understanding commitment provide power sce keep current generation plants generation assets commit provide power regulated cost service basis 10 years dedication power edison international commit entire output sunrise one edison international non regulated generating facilities state fixed price basis 10 years phase sunrise brought online august 15 2001 brought online august 15 2001 edison international shall assessed 2 million penalty transmission sale sce sell state transmission assets approximately 2 76 billion 2 3 times net book value assets subject certain adjustments 2 76 billion 1 5 billion gain sale used reduce sce net undercollected amount january 31 2001 connection purchase state also assume certain liabilities associated transmission assets backup transaction transmission sale occur within two years reasons beyond parties control state elects sce shall sell state sce hydro generation assets hydro assets worth 1 5 billion sce also sell state december 31 2010 enough market price power make shortfall conservation property sce shall grant perpetual conservation easements state covering approximately 260 000 acres big creek hydroelectric related lands 825 acres eastern sierra hydroelectric related lands land may deeded fee contribution edison international edison international refund sce less 400 million money consist refund approximately 293 million estimated 2000 quarterly tax payments plus approximately 197 million federal loss carryback tax savings investment edison international sce invest less 3 billion next 5 years capital improvements sce litigation sce shall dismiss certain claims including takings filed rate doctrine cases cpuc regulation cpuc shall continue regulate sce using historical principles ratemaking payment portion qf drop sce shall pay amount represents portion net short january 18 2001 april 1 2001 attributable qf selling sce due sce failure pay qf sce securitize amount securitization sce shall securitize full net undercollected amount approx 3 5 billion securitization shall occur two tranches e two different nonbypassable dedicated rate components first tranche occur passage legislation signing definitive agreements cover net undercollected amount less gain sale plus interest certain obligations net undercollected amount second tranche would triggered transmission sale occur within two years accordingly second tranche would show rates two years buying net short state required buy net short december 31 2002 2002 sce responsible covering net short investment recovery sce shall authorized rate return drop current rte 11 6 10 year cost service ratemaking period next steps definitive agreements cpuc action definitive agreements mou signed next stage negotiate definitive agreements contain specific terms transmission sale well specific terms various related agreements e g agreement transmission services agreement facilities services agreement cpuc action prior entering definitive agreements cpuc must undertake certain actions include establishing mechanisms preapproval procurement costs urg costs deferring sce general rate case 2003 granting sce relief direct access credits clarifying first priority condition holding company act