E's Rate Cap Proposal: Leading the Charge for Re-Regulation, or 
Protecting Itself from Economic Disaster?

http://www.consultrci.com

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Miss last week? Catch up on the latest in the energy industry at: 
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===============================================================
SCIENTECH IssueAlert, October 10, 2000
PG&E's Rate Cap Proposal: Leading the Charge for Re-Regulation, or Protecting 
Itself from Economic Disaster? 
By: Will McNamara, Director, Electric Industry Analysis
===============================================================

Pacific Gas & Electric Co. (PG&E), in filings with the California Public 
Utilities Commission (CPUC) and California Independent System Operator 
(Cal-ISO), has requested that a rate cap be placed on wholesale purchases 
in the state. The utility is asking the CPUC to lower the current rate 
cap from $250 per megawatt hour to $100, or 10 cents per kilowatt hour. 
In seeking the rate cap, PG&E is joined by Edison International, the parent 
company of Southern California Edison, and The Utility Action Network (TURN), 
a ratepayer advocacy group.

ANALYSIS: The current rate cap of $250 per megawatt hour in the wholesale 
market of California resulted from the price spikes experienced in San 
Diego this summer. As San Diego Gas & Electric had paid off its stranded 
costs, the retail rate freeze in its area was lifted and SDG&E customers 
were exposed to market-based prices, which doubled and at times tripled 
due to increased demand in the state and power supply concerns. PG&E 
customers 
were not exposed to the price spikes because, at the time, PG&E had not 
paid off its own stranded costs and was still under a retail rate freeze.

Yet the company has felt the impact from the price spikes just the same. 
PG&E buys a great deal of its power on the wholesale market, and as a result 
is about $2.2 billion in debt (some figures suggest it is as high as $2.7 
billion).
E's Rate Cap Proposal: Leading the Charge for Re - Regulation, or 
 protect Itself from Economic Disaster? 

 http://www.consultrci.com 

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 Miss final week? Catch up on the latest in the department of energy industry at: 
 http://www.consultrci.com/web/infostore.nsf/Products/IssuesWatch 
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 SCIENTECH IssueAlert, October 10, 2000 
 PG&E's Rate Cap Proposal: Leading the Charge for rhenium - Regulation, or Protecting 
 Itself from Economic Disaster? 
 By: Will McNamara, Director, Electric Industry Analysis 
 = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = = 

 Pacific Gas & Electric Co. (PG&E), in filing with the California Public 
 Utilities Commission (CPUC) and California Independent System Operator 
 (Cal - ISO), has requested that a rate crown be placed on wholesale purchase 
 in the department of state. The utility is asking the CPUC to lower the current rate 
 cap from $ 250 per megawatt hour to $ 100, or 10 cent per kilowatt hour. 
 In seeking the rate cap, PG&E is join by Edison International, the parent 
 company of Southern California Edison, and The Utility Action Network (TURN), 
 a ratepayer advocacy group. 

 ANALYSIS: The current rate cap of $ 250 per megawatt hour in the wholesale 
 grocery store of California resulted from the price spikes experienced in San 
 Diego this summer. As San Diego Gas & Electric had paid off its ground 
 costs, the retail rate freeze in its area was lifted and SDG&E customers 
 were exposed to market - based prices, which doubled and at times tripled 
 due to increased demand in the state and power supply concern. PG&E 
 customers 
 were not exposed to the monetary value spike because, at the prison term, PG&E had not 
 paid off its own stranded price and was still under a retail rate freeze. 

 Yet the company has feel the impact from the price spikes just the same. 
 PG&E buys a capital deal of its power on the wholesale market, and as a resultant role 
 is about $ 2.2 billion in debt (some figure suggest it is as high as $ 2.7 
 billion).
E's Gate Cap Proposal: Leadinn the Charge for Re-Regunation, or 
Protdcting Itself from Economic Visawter?

hunp://www.consultrci.com

************************************************************************ 

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===============================================================
SCIENTECH IssueWlert, Ovtlber 10, 2000
PG&E's Ratg Cap [ropksal: Leading the Charge for Re-Regumation, mr Protecting 
Itself from Economic Disadter? 
By: Will McNamara, Firector, Elgdtryx Industry Avalysis
===============================================================

Pacpyic Gas & Elgctric Co. (PG&E), in filings with thd Calnfornia Puboix 
Uhhlities Comnissijn (CPUC) and Gslifortia Indrpendent Systek O'eraror 
(Cal-ISO), has requesved that a rate cap fe placed ou wholesale purchases 
ib the stade. Tfw ugiljtb ia askijg vhe CPUC to lower the xurrent rate 
cap frpm $250 per megawatt hour eo $100, or 10 cents per kilowatt hour. 
In seekinc tge rate cap, PG&E is joinwd by Edison Internatlonal, the parent 
company of Southern California Edison, and The Ntkliuy Actiub Jetwork (TURN), 
a ratepayer advocacy group.

ANALYSYA: Uhe current rate gap of $250 per megawayt hpor in the wholgsale 
mcdkst of California rfsulted from the prict spiles experienced in San 
Diegi this summeg. As San Diego Gas & Elzctric had pcid ofg its stranded 
costs, the retcil rafe freeze ij its arez was lifted and RDG&V cuvtomers 
were exposed to mawket-based priees, whicf doobled agd at timed triined 
due to increasfd delatd in the dtate and power supply concerns. PG&E 
customers 
ware not expjsed bo the price spykes because, aj the timz, PG&E fad not 
papd off itv own stranqed costs and aas still unver a retwil eate freeze.

Hdt the company has felt the impacr from the price siikes nust the same. 
PY&T bots a great deak ow ies ppwqs on the whonesaue osrket, and as a rcsuut 
ix about $2.2 billion in gebt (some figures suggrsb it is aw high af $2.7 
billion).
E's Rate Cap Proposal: Leading the Charge or Itself from Disaster? http://www.consultrci.com ************************************************************************ on latest in the industry at: http://www.consultrci.com/web/infostore.nsf/Products/IssuesWatch =============================================================== SCIENTECH IssueAlert, October 10, 2000 Rate Cap Proposal: Leading the Charge for Re-Regulation, or Protecting Itself from Economic By: Will McNamara, Director, Electric Industry Analysis =============================================================== Pacific Gas & Electric Co. in with California Utilities Commission (CPUC) and California Independent System Operator (Cal-ISO), has requested that a rate cap be on wholesale purchases in the state. The utility asking the CPUC to the current rate cap from per hour to or cents kilowatt hour. In the rate cap, PG&E is joined by Edison International, the parent company of Southern California Edison, and Utility Action a ratepayer group. The rate cap of megawatt hour in the wholesale market from the price spikes experienced in San Diego summer. As Diego Gas & Electric had paid its stranded costs, the retail rate freeze in area was lifted and SDG&E customers were exposed to market-based prices, which doubled and at due to increased demand the state and supply PG&E were exposed to price spikes because, at the time, PG&E had not paid off own stranded costs and was still under a retail rate the has felt the from the price spikes the PG&E buys a great its on and a is about $2.2 billion debt (some figures suggest it as high as $2.7
E's Rate Cap Proposal: Leading tHe Charge foR Re-ReGulAtiOn, Or 
PrOtecTing Itself from eConoMic Disaster?

http://www.consUltrcI.cOM

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MisS LaSt weeK? Catch uP On THE laTeSt In tHe ENeRgy inDusTry at: 
htTp://www.consuLtrCi.Com/web/infostORe.Nsf/ProductS/IsSuesWatch 
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===============================================================
SCIeNTeCH IssUealeRT, OctoBer 10, 2000
pG&E's RAte Cap pRoposaL: Leading tHe cHarge fOR Re-ReguLATiOn, or protecting 
Itself fROm eConomic DisasteR? 
By: WilL MCnaMARa, DIreCtor, ElectrIc indusTRy AnalySIs
===============================================================

pACIfiC gas & Electric Co. (pG&E), in filingS WitH the CaLiForNIa PublIc 
UtiLiTIes commission (CpUC) aNd CaliforNia IndEPendent sYstem OpErator 
(cal-iSO), Has rEQuEsTed ThAT a rATe Cap BE plAced on whOlEsAle puRchaSES 
IN the StaTe. ThE utilIty is asking thE CPuC to LOweR the cUrrenT ratE 
cAp froM $250 per meGawatT hOur to $100, or 10 cents per KiloWatt hour. 
IN seEkIng ThE rate CAp, PG&E iS joIneD by EdisOn InterNAtiOnAL, THe Parent 
company of SouThERN CAliforniA EdisoN, AnD THE Utility acTioN NetWORk (TURn), 
a raTEpAyer advoCacy grOUp.

aNaLYSIS: THe CurrenT rAte Cap Of $250 per MEgawAtt houR in the whOlesaLE 
market of CalifORnia resulted fROm THE pRIce sPikEs experiencEd in sAn 
DiEgo tHIs SumMEr. As SAn DieGo gAs & eLectric had paid off itS sTrandeD 
costS, the retail ratE freeze in iTS ARea was liFted ANd sdG&E customers 
weRe expOsed to markET-based prIces, wHich doubLed and at tIMEs tripleD 
duE to IncReaSED dEmand in the staTE And pOwEr supplY coNcerns. Pg&E 
cUstOmeRs 
wErE not exposEd to the pRiCe SpIkEs bEcausE, At the timE, Pg&E hAd Not 
Paid oFF its owN straNded CoStS And Was stilL UnDER a reTaIl Rate FreEzE.

Yet tHe coMPanY has felT the impacT frOM the PrIcE spikes Just the same. 
PG&e bUys a great dEaL of Its powER On the whoLesale market, and as a resulT 
Is about $2.2 BilLion iN debT (some figuRes SuggesT it IS as higH as $2.7 
bilLion).
E's Rate Cap Proposal: Lea ding the C harge  fo r R e- Regu lati on, or 
Protec t ingItself from Economic D isast er ? 

ht t p: //www .consul t rc i . com 
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Misslas t week ?Cat c h uponthe l atesti n theenergy in du s try at :  
http: / / ww w.co nsultrci.com/web/ i nf o store.nsf/Prod ucts/I ss u es W a tch  
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= = ====== ===== == = === =========== ==== ========= ====== = ======= = =====
S CIENTE CHIss ueAl e rt ,Oct ob e r 1 0 ,200 0 
PG &E's Rat eCa p Pro posa l : L eadi ngtheCharg e for Re-Regu lat ion, orProte cting  
It se lf fr om Eco nomic  D isaster? 
By: W illMcNamara,  Di re cto r,  Elec t ric In dus try  Analys is
==== = === == = = = == ================== == = = == ======== ====== = == == = ====

Pa ci fic  Gas &  Elec tric Co . (PG&E) , in f i li ng s withth e Cali fo rni a P ublic 
Uti lities  Commiss ion ( C PUC) and Calif o rnia Independ e nt S ys t em O per ator 
(Cal- ISO) ,  has  req u es ted thata rat ec ap be placed on wholes al e purc hases  
in the stat e. The uti l i t y is ask ingt he CPUC to lowerthe c urrent rat e  
cap fr om $2 50 per m egawatt h o u r to $10 0,or10cen t s  p er kilowatt h o u r. In  seekin g t he rate  ca p,PG& E i sjoined by  EdisonIn te rn at ion al, t h e parent  com pa nyof So u thernCalif orni aEd i son , and T h eU t ilit yAc tion  Ne tw ork ( TURN ) , a ratep ayer advo cac y  gro up .
ANALYS IS: The curre nt  rate capof  $2 50 per m egawatthour in the wholesale m arket o f C alifo rnia  resulted  fr om the  pr i ce spi kes ex perie nc edi n  SanD ie goth is summer. A s S an Di eg o Ga s & Ele ctric had paid off its  stranded 
co sts , th e re tai l  r a tefr e eze i n its area waslifted and  S D G& E customer s  
w er e expos ed to m arket - based p rices, wh ich doubl ed  and a t t imes tripl ed 
dueto increa s ed de m an d inthe  state  a ndpower  suppl y  co ncern s. PG& E
custo mers
w ere notexposed to the price sp ikes b ecaus e,at the ti me, PG& E had not  
pa id off its  ow n s trand edc ostsandw as  st i ll un dera  retail r a te  fr e e ze .

Yet thec o m pan y has  fe l t theimpa ct from the price spikes just th e sa m e . PG& E  buy sa great deal o f i ts p ower onth e wholesale  market,  a n d asa resu lt 
is  about$ 2 .2 billio n in  de bt (somefig ur e s sugge st  i t  is as  hig has $2. 7 
bil l ion) . 
E's Rate_Cap Proposal:_Leading the Charge for_Re-Regulation, or_
Protecting_Itself from_Economic_Disaster?

http://www.consultrci.com

************************************************************************ 

Miss last_week? Catch up_on the latest in_the energy industry_at:_
http://www.consultrci.com/web/infostore.nsf/Products/IssuesWatch 
************************************************************************

===============================================================
SCIENTECH IssueAlert, October 10, 2000
PG&E's Rate Cap Proposal: Leading the Charge for Re-Regulation,_or_Protecting 
Itself_from_Economic_Disaster? 
By: Will McNamara, Director,_Electric Industry Analysis
===============================================================

Pacific Gas &_Electric Co._(PG&E), in filings with the California Public 
Utilities_Commission_(CPUC) and California_Independent System Operator 
(Cal-ISO), has requested that a rate_cap be placed on wholesale purchases_
in the state._The_utility_is asking the CPUC_to lower the current rate 
cap_from $250 per megawatt hour to_$100, or 10 cents per kilowatt hour._
In seeking the rate cap, PG&E_is joined by Edison International,_the parent_
company of Southern California Edison,_and The Utility_Action Network_(TURN), 
a ratepayer_advocacy group.

ANALYSIS: The current rate cap_of $250 per_megawatt hour in the wholesale 
market_of_California resulted from_the_price_spikes experienced_in San 
Diego_this_summer. As_San_Diego Gas & Electric had paid_off_its stranded 
costs, the retail rate freeze_in its area was_lifted_and SDG&E customers 
were_exposed to market-based prices, which_doubled and at times tripled 
due_to increased_demand in_the state and power supply concerns. PG&E 
customers 
were not exposed_to the price spikes because, at_the time, PG&E had_not 
paid_off_its own stranded_costs_and was_still under a retail rate freeze.

Yet the_company has_felt the impact from the price_spikes just the same._
PG&E_buys a great deal of its_power on the wholesale market, and_as a result 
is about_$2.2_billion_in debt (some figures suggest_it is as high as $2.7_
billion).