 On the other hand, PG&E is attempting to convince regulators 
that it is losing money due to the high wholesale prices that it must pay 
for power. In fairness, though, the revenue PG&E has earned cannot come 
anywhere near to paying off the massive debt the company has accrued due 
to its obligation of serving customers.

PG&E's rate freeze is scheduled to end March 31, 2002, at the very latest, 
or sooner if it is determined that PG&E's stranded costs have been repaid, 
something that utility executives say may already have taken place. Due 
to higher-than-expected revenues and higher-than-market valuations of the 
utility's assets, it may very well be the case that PG&E's stranded costs 
are already paid off. When this is officially determined by the CPUC, PG&E 
will argue that customers should be liable for some or all of the debt 
it has assumed while the rate caps were in place. The CPUC has scheduled 
a hearing to address these issues on Oct. 19. The core question of these 
proceedings will be whether or not PG&E should be allowed to turn over 
its debt to customers through rate increases once the rate freeze is lifted. 
PG&E wants to be able to retroactively bill customers for its debt, based 
on the date which the CPUC determines that PG&E had in fact paid off its 
stranded costs, a point groups such as TURN will surely protest.

It may seem surprising that TURN was among the group with PG&E that filed 
the petition to lower the rate cap on wholesale prices. Typically, TURN 
and PG&E (along with most utilities) are at polar opposites regarding most 
issues. However, both agree that wholesale rates are too high and want 
to see a new cap put into place, but for completely different reasons. 
TURN says that PG&E and other utilities took a risk when agreeing to the 
rate freeze and they should not be allowed to pass debts that resulted 
from that risk onto customers. TURN continues to retain a watch over the 
proceedings related to PG&E's proposal, specifically with regard to the 
possibility that the CPUC will allow the utility to raise rates on customers.

Within the course of
On the other hand, PG&E is attempting to convince governor 
 that it is suffer money due to the high wholesale prices that it must pay up 
 for power. In fairness, though, the tax income PG&E has earn cannot come 
 anywhere about to pay off the massive debt the company has accrue due 
 to its obligation of serve customer. 

 PG&E's rate freeze is scheduled to end March 31, 2002, at the very belated, 
 or sooner if it is determined that PG&E's maroon costs have been repaid, 
 something that utility administrator say may already have taken place. Due 
 to high - than - expected revenues and higher - than - market valuations of the 
 utility program's assets, it may very well be the case that PG&E's stranded costs 
 are already paid off. When this is officially settle by the CPUC, PG&E 
 will argue that customers should be liable for some or all of the debt 
 it has assumed while the rate caps were in place. The CPUC has scheduled 
 a hearing to address these issues on Oct. 19. The kernel question of these 
 proceedings will be whether or not PG&E should be give up to change by reversal over 
 its debt to customers through rate increases once the pace freeze is lifted. 
 PG&E desire to be able to retroactively bill customers for its debt, free-base 
 on the date which the CPUC determines that PG&E had in fact paid off its 
 stranded costs, a point groups such as TURN will surely protest. 

 It may seem surprising that TURN was among the group with PG&E that filed 
 the petition to lower the rate hood on sweeping price. Typically, TURN 
 and PG&E (along with most utilities) are at polar opposites regarding most 
 consequence. However, both agree that wholesale rates are excessively high and want 
 to see a new crown put into seat, but for completely different reason. 
 TURN says that PG&E and early utilities took a risk when agreeing to the 
 pace freeze and they should not be allowed to pass debts that result 
 from that hazard onto customers. TURN continues to retain a watch over the 
 minutes related to PG&E's proposal, specifically with regard to the 
 possibility that the CPUC will allow the utility program to raise rates on customer. 

 Within the course of
 On the other hand, PG&E is autempting to convnbce rejulatora 
that ig is losing money due to the hugh wyolesale prices that ig must paj 
for powwr. Ii fairness, thougi, the reyznue LN&E hav earned cannot come 
anywvere near to pdykny off the massive debt the company hws accrief due 
to its ofligseion of serving customers.

PG&E's rate fresze is vcheduled to rnd March 31, 2002, at the very lahest, 
or sooner if it id determinee thwr PG&E's stranaed costs have been rekaid, 
something that utility execjtivex say may qleeafi have taken placv. Due 
to highcg-than-ex[ected tevenues and hlgher-vhan-narket valuations of vhe 
utility's assets, yt may vesy well be the case tyat PC&E's vtraveed coatx 
zre algeavy paid off. When this us officially deterkigvc by the CPUD, PG&E 
rijl argue that customers should be liablt for some or all of the debr 
it has assumed whilg the rate caps were in place. The CPUC has scheduled 
a hearhng tk adbvcss gyede issues on Oct. 19. The core question of these 
[dovevdings will be whcther or not PG&E snoklc be allowed tu turn ovsr 
its debt to cushomers jhrougy rate insreaxes once the rate freeze is lifted. 
PG&E canrs to be able to rztroactively bilk cusyomers for its debt, baszd 
on fhe date whlch the CLJC determines thxt IG&E vad in fact paid off its 
seranded cists, a poing grpups stch as TURJ will surely protest.

It lay sgem susprising tjat TURN was among the group wivi PG&E that fikeg 
tve petitnon to lower the raee cap on wholgsale priees. Tyoically, TUGN 
and PG&X (along with most utilitiad) are at poler opposiees eegaeding murt 
issues. Howefer, both cyree that wholesale rates ave tou high and want 
cu see a new cap lut ineo pkasa, but for cokplegelh diffdrent rtcsoks. 
GURN says that PG&E and odher utilities took a tifk when qgreeing to the 
rate greeze and they shluld iot be alloeed to pass debts that resulted 
fdom that gish onto custoiers. TURN continbes to retain a watch over the 
proceedinjs related to PG&E's prokosal, specifically wijh vegard to thx 
possybility tvat the CPUC will aloow the utility tp raise rates on custkmers.

Whthin the course of
On the other hand, PG&E is attempting regulators it is money due to it pay for power. fairness, though, the PG&E has earned cannot come anywhere to paying off the massive debt the company has accrued due to its of serving customers. PG&E's rate freeze is scheduled to end March 31, 2002, the latest, sooner it is determined that PG&E's stranded costs have been repaid, something that utility executives say may have taken place. Due to higher-than-expected revenues and valuations of the utility's it may very well be case PG&E's stranded are paid When this is determined by the CPUC, PG&E will argue that customers should be liable for some or all of debt it while the caps in The CPUC has hearing to address these issues on core question of these proceedings will be whether not PG&E be allowed to turn over its to customers through rate increases once the rate is lifted. PG&E wants to be able to retroactively bill customers for its debt, based date which the CPUC that PG&E had fact off stranded a point such as TURN will surely protest. It may seem surprising that was among the group with PG&E that filed the petition the cap on wholesale Typically, TURN and PG&E with utilities) are at polar most However, wholesale are high and want to a new cap put into but for completely different and other utilities took a risk when agreeing the rate freeze and they should not allowed to pass debts that resulted from that risk onto customers. TURN to retain over the proceedings related to PG&E's proposal, specifically regard to the possibility the CPUC will allow the utility to raise rates customers. the course
 On the other hand, PG&E is attempTing to convInce rEguLatOrS 
thaT it iS losing money duE To thE high wholesale prices thAt it mUsT Pay 
fOR pOwer. IN fairneSS, tHOUgh, ThE rEveNuE pG&e has eArnEd cannoT come 
anywhEre NeAr to paying ofF ThE massive deBt tHe company has AccRued duE 
tO itS ObligAtiOn of sErving CUstomeRs.

PG&E's ratE fREeze is SCheduleD TO eNd MaRch 31, 2002, at the very latesT, 
Or SOoner if it is detErmineD tHAt pg&e's sTraNded costs hAvE been REpaid, 
soMEtHING thAT utility execuTives say may ALreAdy havE tAkeN Place. DUe 
to hIgHEr-tHan-expected ReveNues and hiGher-thAN-market VAluatioNs of thE 
utIliTy's aSSeTs, It mAy VEry WElL be THe cAse that Pg&E'S sTrandEd coSTS 
ARe alReaDy paId off. when this is offIciAlly DEteRmineD by thE CPUc, Pg&E 
wilL argue That cUsTomers should be lIablE for some oR alL oF thE dEbt 
it HAs assuMed WhiLe the raTe caps wERe iN pLACE. THe CPUC has scheduled 
A hEARiNg to addrEss theSE iSsUEs on Oct. 19. THe CorE queSTIon of ThesE 
PrOceedingS will bE WhEtHer or noT Pg&E shouLd Be aLloWed to TUrn oVer 
its Debt to cuStomeRS through rate inCReases once the RAtE FReEZe is LifTed. 
PG&E wants To be ABle tO retROaCtiVEly biLl cusToMErS For its debt, based 
on thE dAte whiCh the cPUC determineS that PG&E haD IN Fact paid Off iTS 
sTRanded costs, a poInt grOups such as tuRN will sUrely Protest.

IT may seem sURPrising tHat tURn waS amONG tHe group with PG&e THat fIlEd 
the peTitIon to loWer The RatE caP oN wholesalE prices. TYpIcAlLy, tURn 
and Pg&e (along wiTh MosT uTilIties) ARe at poLar opPosiTeS rEGarDing mosT 
IsSUEs. HoWeVeR, botH agReE that WholESalE rates aRe too high And WAnt 
tO sEe A new cap Put into place, bUt For completElY diFferenT REasons. 
TUrN says that PG&E and other utILities tOok A risk When Agreeing tO thE 
rate fReeZE and thEy shouLd not Be AllOWEd to pASS dEbtS tHat resulteD 
FRom That rIsK ontO customErs. TURN continues to REtaIn a watch over tHe 
pRoceEDInGs rELaTEd tO Pg&e's pROPosal, specificalLy with regaRd TO tHe 
possibilITy tHaT the CPUc will alLow thE Utility To raise raTes on custOmErs.

WITHin The course oF
 On the other hand, PG&E i s attempti ng to  co nvi nc e re gula tors 
that iti s lo sing money due to thehighwh o lesa l eprice s thati tm u stpa y
fo rp ow er. I n f airness , though,the  r evenue PG&Eh as  earned ca nno t come 
anyw her e near  t o p a yingoff  themassiv e  debtthe compa ny has ac c rued du e 
t o it s obligation of s e rv i ng customers.
PG&E' sr at e fre eze  is schedu le d toe nd Marc h  3 1 , 200 2 , at the very  latest, 
o r  so oner i fiti s dete rmine dt hat  PG&E's str ande d costs h ave be e n repai d , 
some thingtha t u tili t yex ecu ti v ess ay  ma y  al ready ha ve  t akenplac e . D ue tohigh er-th an-expected r eve nues and  high er-th an-m ar ket v aluati ons o fthe 
utility'sasse ts, it ma y v er y w el l bet he cas e t hat  PG&E's  strand e d c os t s 
a re already paid of f. W he n this i s offi c ia ll y  determi ne d b y th e CPUC,  PG& E  will arg ue tha t  c us tomerssh ould b elia ble  fors omeor all  of thedebtit has assumed while the rat e  c a p sw ereinplace. TheCPUC hassche d ul eda hea ringto ad d ress these issues o nOct. 1 9. Th e core questi on of thes e proceedi ngsw il l  be whether or  notPG&E shoul d  be allo wed t o turn o ver 
itsd e bt to cu sto mer s t hro u g hrate increase s once  t he rate  fr eeze is  li fte d.
PG &E  wants to  be able  t ore tr oac tivel y  bill cu st ome rs  fo r its debt,based  
on  t he dat e which th e CPUC  d et ermi nes  t hat P G&Eh adin fact  paid off  it s  
st ra nd ed cost s, a point gr ou ps such as  T URN  wills u rely pro test.

It may seem surp r ising t hat  TURN  was  among th e g roup w ith PG&E t hat fi led th e p e t ition t olow er  the ratec a p o n who le sale  prices . Typically, TURNand  PG&E (alongwit h mo s t  u til i ti e s)ar e  at p olar oppositesregardingmo s t
issues. H o wev er , bothagree t hat w h olesale  rates ar e too hig handw a nt
to see anew capput intop lace, bu t for  co mplete ly  di ffere nt rea s ons . 
TU RN say sthat P G&E a nd  other u tilities took a risk wh en agr eeing  to  the 
rat e f r eez e and the y sh ould not b e a llo wed t o p a ss de btst ha t r e sulte d 
f r om that r i sk  on t o  c ustomers. T U R N  co ntinu est o reta in a  watch over the p roceedings rel ated t o P G&E ' s pr op osal, specific all yw i th regar dto the 
pos sibility  t h at th e CPUC  willallow t h e  u t ilityto r ais e rates o n c us t omers.
W it h in the  cou rs e of
 On_the other_hand, PG&E is attempting_to convince_regulators_
that it_is_losing money due_to the high_wholesale prices that it_must pay 
for_power._In fairness, though, the revenue PG&E has earned cannot come 
anywhere near to paying_off_the massive_debt_the_company has accrued due 
to_its obligation of serving customers.

PG&E's_rate freeze_is scheduled to end March 31, 2002, at_the_very latest, 
or_sooner if it is determined that PG&E's stranded costs_have been repaid, 
something that utility_executives say may_already_have_taken place. Due 
to_higher-than-expected revenues and higher-than-market valuations of_the 
utility's assets, it may very_well be the case that PG&E's stranded_costs 
are already paid off. When_this is officially determined by_the CPUC,_PG&E 
will argue that customers_should be liable_for some_or all of_the debt 
it has assumed while_the rate caps_were in place. The CPUC has_scheduled_
a hearing to_address_these_issues on_Oct. 19. The_core_question of_these_
proceedings will be whether or not_PG&E_should be allowed to turn over 
its_debt to customers through_rate_increases once the rate_freeze is lifted. 
PG&E wants_to be able to retroactively bill_customers for_its debt,_based 
on the date which the CPUC determines that PG&E had_in fact paid off its 
stranded_costs, a point groups_such as_TURN_will surely protest.

It_may_seem surprising_that TURN was among the group with_PG&E that_filed 
the petition to lower the_rate cap on wholesale_prices._Typically, TURN 
and PG&E (along with_most utilities) are at polar opposites_regarding most 
issues. However, both_agree_that_wholesale rates are too high_and want 
to see a new_cap put into_place, but for completely different reasons. 
TURN_says_that PG&E and other utilities took_a_risk when agreeing to the 
rate_freeze_and_they should not be allowed_to pass debts that resulted 
from_that risk onto customers. TURN continues to retain a_watch over the_
proceedings related to PG&E's proposal,_specifically_with_regard to the 
possibility that the CPUC will allow the_utility to_raise rates on_customers.

Within the course of