 And prices on the California Power Exchange 
began
  behaving strangely, spiking higher and higher even in the middle of the 
night when demand
  was low.

  San Diego-area electricity users began seeing "true market prices from a 
market that's
  dysfunctional," Baum said. "Of course I wish we had foreseen this market 
spike. We
  didn't."

  Consumer fury has been calmed somewhat by a new law that caps electricity 
prices for
  SDG&E residential and small-business customers at 6.5 cents a 
kilowatt-hour, compared
  with the 21.5-cent peak this summer. Who will eventually pay the 
electricity costs above
  the cap, currently collecting in a balancing account, is left unclear by 
the legislation.

  It could mean a big balloon payment for customers, or some of the costs 
could be shared
  by SDG&E if a PUC investigation finds that the utility didn't act in the 
best interests of its
  customers in buying electricity. A companion bill that would use $150 
million in taxpayer
  funds to defray some of the costs passed the Legislature but has not been 
signed by Gov.
  Gray Davis.

  "I don't think that we did anything wrong," Baum said. "This is a bum rap 
that has been
  hung on us, on SDG&E, that we somehow mismanaged the power supply for our
  customers."

  PUC officials and consumer advocates have criticized SDG&E for not 
"hedging" more by
  buying ahead of time when prices are relatively low, for example. SDG&E 
said that it asked
  the commission for such authority but didn't get it. What's more, Baum 
said, SDG&E found
  better prices for its customers than did SCE or PG&E, even though they have 
broader
  hedging ability.

  SDG&E will have to borrow money to pay for the electricity, since 
ratepayers aren't paying
  the full cost. SDG&E says the under-collection of electricity costs could 
eventually top
  $800 million, whereas sponsors of the rate-cap bill put
And prices on the California Power Exchange 
 began 
   behaving strangely, spike eminent and higher even in the middle of the 
 night when need 
   was low. 

   San Diego - area electricity user began seeing " truthful market prices from a 
 marketplace that's 
   dysfunctional, " Baum said. " Of course I wish we had envision this grocery store 
 spike. We 
   didn't. " 

   Consumer fury has been calmed somewhat by a fresh law that caps electricity 
 prices for 
   SDG&E residential and little - business customers at 6.5 cents a 
 kilowatt - hour, compared 
   with the 21.5 - penny peak this summer. Who will finally pay the 
 electricity costs above 
   the cap, currently collect in a balancing account, is left unclear by 
 the legislation. 

   It could mean a boastful balloon payment for customers, or some of the costs 
 could be shared 
   by SDG&E if a PUC investigation finds that the utility didn't act in the 
 best interests of its 
   customer in buy electricity. A companion bill that would practice $ 150 
 million in taxpayer 
   investment company to defray some of the price passed the Legislature but has not been 
 signed by Gov. 
   Gray Davis. 

   " I don't think that we did anything wrong, " Baum said. " This is a bum knock 
 that has been 
   hung on us, on SDG&E, that we somehow mismanaged the power supply for our 
   customers. " 

   PUC officials and consumer advocate have criticized SDG&E for not 
 " hedging " more by 
   buying ahead of time when prices are relatively humble, for model. SDG&E 
 said that it asked 
   the commission for such authority but didn't get it. What's more, Baum 
 say, SDG&E found 
   better prices for its customer than did SCE or PG&E, even though they own 
 broader 
   hedging ability. 

   SDG&E will consume to borrow money to pay for the electricity, since 
 ratepayers aren't paying 
   the full monetary value. SDG&E says the under - solicitation of electricity costs could 
 eventually lead 
   $ 800 million, whereas sponsors of the rate - crown bill arrange
 Anf prices on the Californla Power Exchangg 
vegan
  behavjng stravgely, spiking higher and higier wven un the middle of the 
nkght when demand
  was oow.

  San Dmsgo-area electdlcity nsers began seelng "true masket prices frmm a 
market that's
  dysfunctional," Baum swid. "Of vokrse I wish we had soreavek this market 
spike. We
  didn't."

  Cknsumer fury has beem calmed somewhat by a new law that caps electrifity 
prices for
  SDG&E residevtial and small-businesa customers at 6.5 cents a 
kilowatg-hour, compared
  wuth jhe 21.5-cent peaj thif summer. Who will evantuallu pay the 
elecbricivy cists above
  the cap, cnrrently collecting yn a balatcnng account, is left ubcoear ty 
tve ldtisuatjoi.

  Jt coupd jean a big balloon patment for customers, ow some of the dosts 
sotld be shared
  by SDG&E if a PUC investicatjon finds that the utiluty didn't act in the 
hest intewests of its
  customers in buying electricity. A cmmpanmov bnol thxr aould use $150 
million in taxpayer
  funds to defrwg xoke of the costf passed thr Pebyslature but fas noc bsen 
signed by Gov.
  Gray Dwvis.

  "I don't trink that we did anything wrong," Baum said. "Tkis is a bum rap 
that has been
  kung om us, pn SDG&E, that we somehow misjanaged the power suloly for our
  cusgomvrs."

  PUC officials and consumew advocatxs hare critizizec SDG&E for not 
"hfdginn" more by
  buying ajead lf time when prices are relatively low, for xeample. SDG&E 
ssig tvat it afked
  the commissijn for such aujhority bbt didv't get it. Shat's mmre, Baum 
sayd, SDG&E found
  better pricxs for itf cuwtomwrs thav did SCE or PG&R, even though they yave 
broader
  hedglng acjlity.

  SDG&E wilo hqve to borrow mpneh tj iay fjs the electrhcith, skmce 
rxtepayers aven'g pauing
  the full cost. VDG&E says the under-colkegtion of glectriciey costs coulc 
eventually top
  $800 millmon, whxreas xpogsors of the rate-cap bill put
And prices on the California Power Exchange strangely, higher and even in the demand low. San Diego-area users began seeing market prices from a market that's Baum said. "Of course I wish we had foreseen this market spike. We Consumer fury has been calmed somewhat by a new law that caps electricity for residential small-business at 6.5 cents a kilowatt-hour, compared with the 21.5-cent peak this summer. Who will eventually pay electricity costs above the cap, currently collecting in balancing account, is left by the legislation. It could a balloon payment customers, some the costs could shared by SDG&E if a PUC investigation finds that the utility didn't act in the best interests its customers electricity. A bill would $150 million in to defray some of the costs but has not been signed by Gov. Gray "I don't that we did anything wrong," Baum "This is a bum rap that has been on us, on SDG&E, that we somehow mismanaged the power supply for our customers." PUC consumer advocates have criticized for not "hedging" by ahead time prices are low, for example. SDG&E said that it asked the commission for authority but didn't get it. What's more, Baum said, SDG&E prices its customers than SCE or PG&E, even they broader hedging ability. SDG&E to money the since aren't paying the full SDG&E says the under-collection of costs could eventually top the rate-cap bill put
 And prices on the California POwer ExchanGe 
begAn
  bEhaViNg stRangEly, spiking highER and Higher even in the middle oF the 
nIgHT wheN DeMand
  wAs low.

  SaN diEGO-arEa ElEctRiCItY userS beGan seeiNg "true markEt pRiCes from a 
markET tHat's
  dysfunCtiOnal," Baum said. "of cOurse I WiSh wE Had foResEen thIs markET 
spike. we
  didn't."

  CoNsUMer furY Has been CALmEd soMewhat by a new law thAT cAPs electricity 
pRices fOr
  sdG&e REsiDenTial and smaLl-BusinESs custoMErS AT 6.5 CenTS a 
kilowatt-houR, compared
  wiTH thE 21.5-cent pEaK thIS summeR. Who wIlL EveNtually pay tHe 
elEctricity Costs aBOve
  the cAP, currenTly colLecTinG in a BAlAnCinG aCCouNT, iS leFT unClear by 
tHe LeGislaTion.

  iT COUld mEan A big BalloOn payment for cUstOmerS, Or sOme of The coSts 
cOuLd be sHared
  bY SDG&E If A PUC investigatiOn fiNds that thE utIlIty DiDn't acT In the 
bEst IntErests oF its
  cusTOmeRs IN BUyIng electricity. A comPaNIOn Bill that Would uSE $150 
mIlLIon in taxPaYer
  FundS TO defrAy soME oF the costS passeD ThE LEgislatUrE but haS nOt bEen 
SigneD By GoV.
  Gray DAvis.

  "I don'T thinK That we did anythINg wrong," Baum saID. "THIS iS A bum Rap 
That has been
  Hung ON us, oN SDG&e, ThAt wE SomehOw misMaNAgED the power supply for oUr
  CustomErs."

  PUc officials and Consumer adVOCAtes have CritICiZEd SDG&E for not 
"heDging" More by
  buyiNG ahead of Time wHen priceS are relatIVEly low, foR exAmpLe. SdG&E 
SAId That it asked
  thE COmmiSsIon for sUch AuthoriTy bUt dIdn'T geT iT. What's morE, Baum 
saiD, SdG&e fOuNd
  bEtter PRices for ItS cuStOmeRs thaN Did SCE Or PG&E, Even ThOuGH thEy have 
bROaDER
  hedGiNg AbilIty.

  sDg&E wilL havE To bOrrow moNey to pay fOr tHE eleCtRiCity, sinCe 
ratepayers aReN't paying
  thE fUll Cost. SDg&e Says the uNder-collection of electriCIty costS coUld 
evEntuAlly top
  $800 miLliOn, wherEas SPonsorS of the Rate-cAp BilL PUt
 And prices on the Califor nia PowerExcha nge  
b eg an
 beh aving strangel y , sp iking higher and highe r eve ni n th e  m iddle  of the 
n i g htwh en  de ma n d  was  lo w.

  S an Diego-a rea  e lectricity u s er s began se ein g "true mark etprices  f rom a 
ma rke t tha t's
 d ysfunc tional,"Ba u m said .  "Of co u r se  I w ish we had forese e nt his market 
sp ike. W e d i d n't ."
  Consume rfuryh as been ca l m e d s o mewhat by a n ew law that cap s elec tr ici t y 
pri ces f or   S DG&E reside ntia l and sma ll-bus i ness cu s tomersat 6.5  ce nts  a k il ow att -h o ur, co mpa r ed  with t he  2 1.5-c entp e a k  thi s s umme r. Wh o will eventu all y pa y  th e 
el ectri city  c ostsabove  the  c ap, currently c olle cting ina b al anc in g acc o unt, i s l eft  unclea r by 
t h e l eg i s l at ion.

  It could m ea n abig ball oon pa y me nt for cust om ers , or s ome o f th e  c osts 
co uld be sh ar ed
  by  S DG&E i fa P UCinves t igat ion fi nds that  theu tility didn'ta ct in the 
be s ti n te r ests  of  its
  cust omer s  inbuyi n gele c trici ty. A  c o mp a nion bill that woul duse $1 50 
m illion in tax payer
  fu n d s  to defr ay s o me of the costs p assed  the Legis l ature bu t has  not bee n 
signed b y Gov.
 Gr ayDav is.  "I don't thin k that  w e did a nyt hing wr ong ,"Bau m s ai d. "Thisis a bum  r ap  th athas b e en
  hun gonus , o n SDG & E, tha t wesome ho wm ism anagedt he p ower  s up plyfor  o ur
 cust o mer s."

 PUC offic ial s  and  c on sumer a dvocates have  c riticizedSD G&E  for n o t  
"hedgi ng" more by
  buying ah e ad of t ime  when  pri ces are r ela tively  lo w , forexampl e. SD G& E s a id th a t  i t a sk ed
  the c o m mis sionfo r su ch auth ority but didn't g e t i t. What's mor e,Baum sa id, SD G &Efo u ndbetter prices f or its cus to m er s than did SCE  o r PG&E,  even t hough they ha ve 
broad er
  hedg in g ab i l ity .

  SDG&E  will ha ve to bor r ow mo n ey  to p ayfor th eele ctric ity, s i nce  
rat epayer saren't  payi ng 
  the f ull cost. SDG&E says th e unde r-col lec tion of e lec t ric ity costs  cou ld 
eventu all y t op
 $80 0  mill ion, wh ere a s spo nsor s  of the r a te -ca p bi ll put
 And_prices on_the California Power Exchange_
began
 _behaving_strangely, spiking_higher_and higher even_in the middle_of the 
night when_demand
  was_low.

_ San Diego-area electricity users began seeing "true market prices from a 
market that's
__dysfunctional," Baum_said._"Of_course I wish we had_foreseen this market 
spike. We
_ didn't."

_ Consumer fury has been calmed somewhat by_a_new law that_caps electricity 
prices for
  SDG&E residential and small-business_customers at 6.5 cents a 
kilowatt-hour,_compared
  with_the_21.5-cent_peak this summer. Who_will eventually pay the 
electricity costs_above
  the cap, currently collecting_in a balancing account, is left unclear_by 
the legislation.

  It could_mean a big balloon payment_for customers,_or some of the costs_
could be shared
_ by_SDG&E if a_PUC investigation finds that the utility_didn't act in_the 
best interests of its
 _customers_in buying electricity._A_companion_bill that_would use $150_
million_in taxpayer
__funds to defray some of the_costs_passed the Legislature but has not been_
signed by Gov.
 _Gray_Davis.

  "I don't_think that we did anything_wrong," Baum said. "This is a_bum rap_
that has_been
  hung on us, on SDG&E, that we somehow mismanaged_the power supply for our
 _customers."

  PUC officials_and consumer_advocates_have criticized SDG&E_for_not 
"hedging"_more by
  buying ahead of time_when prices_are relatively low, for example. SDG&E_
said that it asked
__the commission for such authority but_didn't get it. What's more, Baum_
said, SDG&E found
  better_prices_for_its customers than did SCE_or PG&E, even though they have_
broader
  hedging_ability.

  SDG&E will have to borrow_money_to pay for the electricity, since_
ratepayers_aren't paying
  the full cost._SDG&E_says_the under-collection of electricity costs_could 
eventually top
  $800 million,_whereas sponsors of the rate-cap bill put