california puc proposed decision attached are notes from a press conference that cpuc president lynch held earlier today . sue mara works in our sf office . as a note , all of these concepts must still be approved tomorrow at a cpuc public meeting with 3 votes . we expect passage . call with any questions . jim - - - - - forwarded by james d steffes / na / enron on 03 / 26 / 2001 02 : 06 pm - - - - - susan j mara 03 / 26 / 2001 01 : 14 pm to : 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 , christopher f calger / pdx / ect @ ect , craig h sutter / hou / ees @ ees , dan leff / hou / ees @ ees , debora whitehead / hou / ees @ ees , dennis benevides / hou / ees @ ees , don black / hou / ees @ ees , 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 d steffes / na / enron @ enron , james w lewis / hou / ees @ ees , james wright / western region / the 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 s muller / hou / ees @ ees , marsha suggs / hou / ees @ ees , marty sunde / hou / ees @ ees , meredith m eggleston / hou / ees @ ees , michael etringer / hou / ect @ ect , michael mann / hou / ees @ ees , michelle d cisneros / hou / ect @ ect , mpalmer @ enron . com , neil bresnan / hou / ees @ ees , neil hong / hou / ees @ ees , paul kaufman / pdx / ect @ ect , richard l zdunkewicz / hou / ees @ ees , richard leibert / hou / ees @ ees , richard shapiro / na / enron @ enron , rita hennessy / na / enron @ enron , robert badeer / hou / ect @ ect , 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 , susan j mara / na / enron @ enron , 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 s bradford / hou / ect @ ect , jubran whalan / hou / ees @ ees , triley @ enron . com , richard b sanders / hou / ect @ ect , robert c williams / enron _ development @ enron _ development , dwatkiss @ bracepatt . com , rcarroll @ bracepatt . com , donna fulton / corp / enron @ enron , gfergus @ brobeck . com , kathryn corbally / corp / enron @ enron , bruno gaillard / eu / enron @ enron , linda robertson / na / enron @ enron , ren ? lazure / western region / the bentley company @ exchange , michael tribolet / corp / enron @ enron , phillip k allen / hou / ect @ ect , christian yoder / hou / ect @ ect , jklauber @ llgm . com , tamara johnson / hou / ees @ ees , mary hain / hou / ect @ ect , greg wolfe / hou / ect @ ect , jeff dasovich / na / enron @ enron , dirk vanulden / western region / the bentley company @ exchange , steve walker / sfo / ees @ ees , james wright / western region / the bentley company @ exchange , mike d smith / hou / ees @ ees , richard shapiro / na / enron @ enron , leslie lawner / na / enron @ enron , robert neustaedter / enron _ development @ enron _ development , steve walton / hou / ect @ ect , psmith 3 @ enron . com , mjackso 7 @ enron . com , janel guerrero / corp / enron @ enron , mark fillinger / sf / ect @ ect , jennifer rudolph / hou / ees @ ees , martin wenzel / sfo / hou / ees @ ees , wgang @ enron . com , joseph alamo / na / enron @ enron , tracy ngo / pdx / ect @ ect , ray alvarez / na / enron @ enron , steve c hall / pdx / ect @ ect , mday @ gmssr . com , sgovenar @ govadv . com cc : subject : cpuc news - - from press conference as we speak lynch started out castigating ferc for the " failure to act " , sellers for high prices forcing ca into this action . has some charts in the press package . talked about how wonderful the govs proposals have been . said net short is 34 % . sellers " have us over a barrell " for those sales . attorney gen continues investigation of the sellers . these are all for going forward costs - - this doesn ' t address the " $ for the hot dog , which is being taken care of in sacramento . " she said these proposals ensure reliability and allow treasurer to issue bonds . continues to castigate ferc throughout the call . wants new appointments to ferc from the states - - " our cries have fallen on deaf ears " lynch announced the following votes for tomorrow : 1 . wood ' s proposal - - modified - - order that the ious to pay the qfs beginning 4 / 1 on a going forward basis only . modified existing formula in section 390 ( legislative change to this section did not pass yet ) . shifts the srac gas index from topoc ( where wood says the prices are being mnipulated ) to malin , where prices have been more stable . 2 . sets the ca procurement adjustment - - orders the ious to pay the dwr for purchases . at one point she said that the order would be for all power for purchased by the state beginning jan 19 ; at another point she said that the payments are for going forward costs . " it ' s time to pay the power bills for california . " cpa calculated based on the " residual " method , rather than the proportional method . payments to dwr made on the proportional method , however . 3 . lynch alternate setting a 3 cents / kwh increase in accordance with ab lx . ( the alj decision said no rate increase . ) makes the 1 cent temp charge permanent ( we believe that this is additive with the 3 cents - 4 cent total ) believe this covers all needs on a going forward basis . according to abx 1 , small customers with 130 % over baseline get no increase , small customers with 200 % increase , get a 9 % increase - - the rest get socked , i guess . adopted turn ' s accounting proposal implying that the rate freeze is not yet over . will look at rate design in a future proceeding . takes ious 30 - 45 days to charge the rates ( although could come earlier ) ; will conduct a rate design proceeding during that time period ( see # 5 ) . 4 . orders an investigation into the utility holding company structure to see if it is best for the public utilities to be outside holding companies . a new proceeding was also identified . 5 . lynch is issuing an assigned comissioner ruling proposing a new rate structure . ( i presume to have rates that increase greatly with more use ) need information from dwr to calculate rates and dwr has not yet provided it . described the need to have a record on this . as mentioned in # 3 above - - would expect this to be comepled with a decision in 30 - 45 days . in one of the above orders , lynch said that she orders the utililities to go after sellers using all legal means for the unjust and unreasonable prices .