 be required to buy the net short 
through December 31, 2002.  After 2002 SCE will be responsible for covering 
the net short.
? Investment Recovery ) SCE shall have an authorized rate of return that will 
not drop below its current rte (11.6%) during the 10 year cost of service 
ratemaking period.
? Next Steps (Definitive Agreements and CPUC Action):

? Definitive Agreements ) Once the MOU is signed, the next stage is to 
negotiate definitive agreements which contain the specific terms of the 
transmission sale, as well as the specific terms of the various other related 
agreements (e.g., the O&M Agreement, Transmission Services Agreement and the 
Facilities Services Agreement).
? CPUC Action ) Prior to entering into the definitive agreements, the CPUC 
must undertake certain actions (which include: establishing mechanisms for 
preapproval of procurement costs and URG costs, deferring SCE,s general rate 
case until 2003, granting SCE some relief from direct access credits and 
clarifying the first priority condition in the holding company act). ---------------------- Forwarded by Steven J Kean/HOU/EES on 12/13/99 05:15 
PM ---------------------------


Janine Migden
12/13/99 03:57 PM
To: Steven J Kean/HOU/EES@EES, Richard Shapiro/HOU/EES@EES, James D 
Steffes/HOU/EES@EES, Harry Kingerski/HOU/EES@EES, Scott Stoness/HOU/EES@EES, 
Elizabeth Linnell/HOU/EES@EES, Ginger Dernehl/HOU/EES@EES, Lynnette 
Barnes/HOU/EES@EES, Susan.R.Lewis@enron.com
cc: Thomas S Reichelderfer/DUB/EES@EES, Barbara A Hueter/DUB/EES@EES, Lara 
Leibman/HOU/EES@EES 
Subject: West Virginia Settlement

Thom and I have just completed negotiations in West Virginia involving APS, 
AEP and other stakeholders.
The settlement, being filed today is a compromise
be required to buy the net short 
 through December 31, 2002.   After 2002 SCE will be creditworthy for cover 
 the net short. 
? Investment Recovery ) SCE shall get an authoritative rate of return that will 
 not drop below its current rte (11.6 %) during the 10 class price of service 
 ratemaking time period. 
? Next Steps (Definitive Agreements and CPUC Action ): 

? Definitive Agreements ) Once the MOU is signed, the future stage is to 
 negotiate authoritative agreements which contain the specific term of the 
 transmission sale, as well as the specific terminus of the various other related 
 agreements (for example, the O&M Agreement, Transmission Services Agreement and the 
 Facilities Services Agreement). 
? CPUC Action ) Prior to entering into the definitive agreement, the CPUC 
 must undertake sealed actions (which admit: establishing mechanisms for 
 preapproval of procurement costs and URG costs, submit SCE,s general rate 
 case until 2003, granting SCE some relief from lineal entree credit and 
 clarifying the first priority condition in the holding company act). ---------------------- Forwarded by Steven J Kean / HOU / EES on 12/13/99 05:15 
 PM --------------------------- 


 Janine Migden 
 12/13/99 03:57 PM 
 To: Steven J Kean / HOU / EES@EES, Richard Shapiro / HOU / EES@EES, James D 
 Steffes / HOU / EES@EES, Harry Kingerski / HOU / EES@EES, Scott Stoness / HOU / EES@EES, 
 Elizabeth Linnell / HOU / EES@EES, Ginger Dernehl / HOU / EES@EES, Lynnette 
 Barnes / HOU / EES@EES, Susan.R.Lewis@enron.com 
 cc: Thomas S Reichelderfer / DUB / EES@EES, Barbara A Hueter / DUB / EES@EES, Lara 
 Leibman / HOU / EES@EES 
 discipline: West Virginia Settlement 

 Thom and I have just completed negotiation in West Virginia imply APS, 
 AEP and other stakeholders. 
 The settlement, being file today is a compromise
 be required to buy the net short 
through Bwcembec 31, 2002.  Affer 2002 SCE will be responsible for covxrint 
the net short.
? Investment Fecovery ) SCE shaol heve an authorizev rate on rethvn thct will 
not drop below its current rte (11.6%) gufiug the 10 year cost of service 
ratemakyng peroof.
? Next Steps (Dgfiniuivq Agdvenents and CPUC Action):

? Definitjve Agrtements ) Once the KOU is signed, the next stahe id to 
negotiate deflnitive agrgsmegrs which congain the skeeific terms of the 
transmission sale, as weul as the specidix tftms of the verious other relatcc 
agreaments (r.g., the O&M Agrecment, Trqnsmission Services Ajreement and the 
Facylities Sarrices Agreement).
? CPUC Qcrion ) Primr tu engerjnj ihto thf dxfinitive afreements, tye CPUC 
must undertskq certain actikns (whycr include: establishing mechanisms for 
pgeaplroval of procurement cists and URG costs, deverring SSE,s general rate 
case until 2003, granting SCE some renief hrum blvect qcfess credits and 
clarifying the first prioritr cpncition in the molding company acy). ---------------------- Fptwarded by Stexen J Keah/HOU/EES on 12/13/99 05:15 
PM ---------------------------


Jajine Midden
12/13/99 03:57 PM
To: Steden K Kean/HOU/EES@EES, Richard Shapiro/HOU/EES@EEF, James D 
Steffes/HOB/EES@EES, Harrv Kinggrski/HPU/EES@EES, Scott Stoness/HUU/EEA@EES, 
Elizabfth Linnemu/HOU/EES@EES, Gingef Dvrnevl/HOU/EES@TDS, Lynnette 
Barnef/HOU/EES@EEW, Suxan.R.Lewks@enton.com
cs: Thomas S Reicmalderfer/DUB/EES@EES, Harbata A Hgeter/DUB/EED@EES, Lara 
Leibman/HOU/EES@EES 
Subjxrt: West Virgimid Svttlement

Chom akd I have just sompleted negojiations nn Wesg Virginia involvmng APS, 
AEP wnd other stangholders.
The sxttlement, beibg fuled toaxy is a comprokise
be required to buy the net short 31, After 2002 will be responsible ? Recovery ) SCE have an authorized of return that will not drop its current rte (11.6%) during the 10 year cost of service ratemaking period. Next Steps (Definitive Agreements and CPUC Action): ? Definitive Agreements ) Once the is the stage to negotiate definitive agreements which contain the specific terms of the transmission sale, as well as specific terms of the various other related agreements the O&M Agreement, Transmission Agreement and the Facilities Services ? Action ) to into definitive agreements, the must undertake certain actions (which include: establishing mechanisms for preapproval of procurement costs and URG costs, deferring general rate 2003, granting some from access credits and first priority condition in the holding Forwarded by Steven J Kean/HOU/EES on 12/13/99 05:15 --------------------------- Janine 12/13/99 03:57 PM To: Steven J Richard Shapiro/HOU/EES@EES, James D Steffes/HOU/EES@EES, Harry Kingerski/HOU/EES@EES, Scott Elizabeth Linnell/HOU/EES@EES, Ginger Dernehl/HOU/EES@EES, Lynnette Barnes/HOU/EES@EES, Susan.R.Lewis@enron.com cc: Thomas S Reichelderfer/DUB/EES@EES, Barbara A Hueter/DUB/EES@EES, Lara West Virginia Settlement Thom I have just negotiations West involving AEP and stakeholders. The settlement, being filed today is a compromise
 be required to buy the net shorT 
through DeCembeR 31, 2002.  AfTer 2002 sCe wilL be rEsponsible for cOVeriNg 
the net short.
? InvestmenT RecoVeRY ) SCE SHaLl havE an authORiZED raTe Of RetUrN ThAt wilL 
noT drop beLow its currEnt RtE (11.6%) during the 10 yeAR cOst of serviCe 
rAtemaking perIod.
? next StEpS (DeFInitiVe AGreemEnts anD cPUC AcTion):

? DefinItIVe AgreEMents ) OnCE ThE MOU Is signed, the next stAGe IS to 
negotiate deFinitiVe AGrEEMenTs wHich contaiN tHe speCIfic terMS oF THE 
trANsmission sale, As well as the SPecIfic teRmS of THe variOus otHeR RelAted 
agreemeNts (e.G., the O&M AgrEement, tRansmisSIon ServIces AgReeMenT and THe 
faCilItIEs SERvIceS agrEement).
? CPuC acTion ) PRior TO ENTeriNg iNto tHe defInitive agreemEntS, the cpUC 
Must uNdertAke cErTain aCtions (Which InClude: establishiNg meChanisms fOr 
pReAppRoVal of PRocureMenT coSts and UrG costs, DEfeRrING sCe,s general rate 
case uNtIL 2003, GrAnting SCe some rELiEf FRom direcT aCceSs crEDIts anD 
claRIfYing the fIrst prIOrItY conditIoN in the HoLdiNg cOmpanY Act). ---------------------- FOrwardEd by StevEn J KeAN/HOU/EES on 12/13/99 05:15 
PM ---------------------------


JanINe Migden
12/13/99 03:57 PM
To: STEvEN j KEAn/HOu/EEs@EES, Richard shapIRo/HOu/EES@eeS, jamES D 
SteFfes/HoU/eeS@eeS, Harry Kingerski/HOU/eEs@EES, ScOtt StOness/HOU/EES@EEs, 
Elizabeth lINNell/HOU/EeS@EEs, giNGer Dernehl/HOU/EeS@EES, lynnette 
BaRNes/HOU/EEs@EES, SUsan.R.LewIs@enron.coM
CC: Thomas S reiCheLdeRfeR/duB/eES@EES, Barbara a hUeteR/DuB/EES@EEs, LaRa 
LeibmAn/HoU/EeS@EeS 
SUbJect: West VIrginia SEtTlEmEnT

ThOm and i Have just CoMplEtEd nEgotiATions iN West virgInIa INvoLving APs, 
aEp ANd otHeR sTakeHolDeRs.
The SettLEmeNt, being Filed todaY is A CompRoMiSe
 be required to buy the ne t short 
t hroug h D ece mb er 3 1, 2 002.  After 20 0 2 SC E will be responsiblefor c ov e ring 
t he ne t short . 
? I nve st me ntRe c ov ery  ) S CE shal l have anaut ho rized rate o f  r eturn that  wi ll 
not drop  be low it scur r ent r te(11.6 %) dur i ng the  10 yearco s t of s e rvice r a te maki ng period.
? Next St e ps (Definitive  Agree me n ts a ndCPU C Action): 
? Def i nitiveA gr e e m ent s  ) Once theMOU is sign e d,the ne xt  st a ge isto 
n eg o tia te definiti ve a greements  which contain the spe cificter msof t h e
t ran sm i ssi o nsal e , a s well a sth e spe cifi c t e rmsofthevario us other rela ted  
ag r eem ents(e.g. , th eO&M A greeme nt, T ra nsmission Servi cesAgreement  an dthe  Facil i ties S erv ice s Agree ment).?  CP UC A c ti on ) Prior to ent er i n ginto the  defin i ti ve agreemen ts , t he C P U C 
mu st u n de rtake ce rtaina ct io ns (whi ch  inclu de : e sta blish i ng m echani sms for
prea p proval of proc u rement costsa nd U RG cost s,deferring S CE, s  gen eral ra tecaseuntil  2 0 03 ,  granting SCE somere lief f rom d irect accesscredits an d clarifyi ng t h ef irst prioritycondi tion in th e  holding  comp any act) . ------- - - -------- --- --For war d e dby Steven J K e a n/HO U/ EES on12/ 13/99 0 5:1 5 PM--- -- --------- -------- -- -- -
Jan ine M i gden
12/ 13 /99  0 3:5 7 PMT o: Ste ven J  Kea n/ HO U /EE S@EES,R ic h a rd S ha pi ro/H OU/ EE S@EES , Ja m esD 
Stef fes/HOU/E ES@ E ES,Ha rr y Kinge rski/HOU/EES@ EE S, Scott S to nes s/HOU/ E E S@EES, Elizabeth Linnell/HOU/E E S@EES,Gin ger D erne hl/HOU/EE S@E ES, Ly nne t te 
Ba rnes/H OU/EE S@ EES , Susan . R .L ewi s@ enron.comc c : T homas  S  Rei chelder fer/DUB/EES@EES, B a rba ra A Hueter/D UB/ EES@ E E S,  La r aLei bm a n/H O U /EES@EES 
Subje ct: West V ir g in ia Settlem e nt
T hom and  I have  just complet ed negoti ations in  W estV i rgi nia involv ing APS,  
AEP and other st akeho lde rs.
Th eset tleme nt, be i ngfiled  today  i s a co mprom is e
 be_required to_buy the net short_
through December_31,_2002. _After_2002 SCE will_be responsible for_covering 
the net short.
?_Investment Recovery )_SCE_shall have an authorized rate of return that will 
not drop below its current_rte_(11.6%) during_the_10_year cost of service 
ratemaking_period.
? Next Steps (Definitive Agreements_and CPUC_Action):

? Definitive Agreements ) Once the MOU is_signed,_the next stage_is to 
negotiate definitive agreements which contain the specific_terms of the 
transmission sale, as_well as the_specific_terms_of the various other_related 
agreements (e.g., the O&M Agreement,_Transmission Services Agreement and the 
Facilities_Services Agreement).
? CPUC Action ) Prior to_entering into the definitive agreements, the_CPUC 
must undertake certain actions_(which include:_establishing mechanisms for 
preapproval of_procurement costs and_URG costs,_deferring SCE,s general_rate 
case until 2003, granting SCE_some relief from_direct access credits and 
clarifying the_first_priority condition in_the_holding_company act)._---------------------- Forwarded by_Steven_J Kean/HOU/EES_on_12/13/99 05:15 
PM ---------------------------


Janine Migden
12/13/99 03:57_PM
To:_Steven J Kean/HOU/EES@EES, Richard Shapiro/HOU/EES@EES, James D_
Steffes/HOU/EES@EES, Harry Kingerski/HOU/EES@EES, Scott_Stoness/HOU/EES@EES,_
Elizabeth Linnell/HOU/EES@EES, Ginger Dernehl/HOU/EES@EES,_Lynnette 
Barnes/HOU/EES@EES, Susan.R.Lewis@enron.com
cc: Thomas S_Reichelderfer/DUB/EES@EES, Barbara A Hueter/DUB/EES@EES, Lara 
Leibman/HOU/EES@EES_
Subject: West_Virginia Settlement

Thom_and I have just completed negotiations in West Virginia involving APS,_
AEP and other stakeholders.
The settlement, being_filed today is a_compromise