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Best, Jeff
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I forget.
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What's the Governor of Montana's position on price caps in theWest?
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Best, Jeff
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Thanks much.
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Sorry for being such a loser when it comes to calls these days.
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Best, Jeff
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I need to send a copy of a report to: Greg Blue Suite 200 Could you stop by and pick it up when you get a minute?
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Thanks a million.
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Jeff
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Thanks a bunch.
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Ralph teaches at Stanford Law on Mondays.
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Left him a message.
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I'll get back when he returns my call.
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Best, Jeff
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got it.
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haas mix up.
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i'll make the calls.
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Best, Jeff
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"The Impact of Retail Rate Deregulation on Electricity Consumption in San Diego" (April 2001) PWP-082 by James B. Bushnell and Erin T. Mansur Retail electricity rates in the San Diego Gas & Electric service territory more than doubled over a period of three months during the summer of 2000.
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Much of this increase was subsequently rescinded through a retroactive rate freeze.
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We examine the impact of these events on overall consumption levels in San Diego.
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We find that average electricity consumption decreased by roughly 55 MW, or 1.6%, between mid-July and the end of August.
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Demand was reduced by over 6% in the late afternoon and late evening.
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Because of the uncertainty about the duration and the credibility of the rate increase, these results should be viewed as a lower bound on the demand reductions that could be achieved through pricing incentives.
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Download this paper in Adobe Acrobat format:
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computer lab for modeling.
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same thing this thursday.
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Here's some stuff I worked on over the weekend.
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OAT's balance sheet and income statement and common-sized.
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Haven't put together the cash flow yet.
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Please take a look.
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Really wanted to get something in a file for folks to start looking at so that, together with the materials Anil and Carolyn have pulled together, we can start filling in our assumptions and doing some valuations.
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I can do the same for Coke and Pepsi.
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Take a peek and let's try to discuss by email.
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Or I'm up for a conference call tomorrow or Wednesday (or a meeting in person) if you folks are game.
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Best, Jeff
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SB 43 has NOT been signed yet.
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John: I'm not sure how to read it, but it certainly doesn't seem encouraging.
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I'll try to find out more tomorrow.
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Best, The following is an outline of the basic terms of the Southern CaliforniaEdison Memorandum of Understanding: ?
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Commitment to Provide Power ) SCE will keep its current generation plaand other generation assets and commit them to provide power on a regulatedcost-of-service basis for 10 years.
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?
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Dedication of Power ) Edison International will commit the entire output of Sunrise (one of Edison International,s non-regulated generating facilities) to the State on a fixed price basis for 10 years.
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Phase I of Sunrise is to be brought online by August 15, 2001.
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If not brought online by August 15, 2001Edison International shall be assessed a $2 million penalty.
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?
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Transmission Sale ) SCE will sell to the State its transmission assets for approximately $2.76 billion (2.3 times the net book value of the assets),subject to certain adjustments.
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Of the $2.76 billion, the $1.5 billion gainon sale, will be used to reduce SCE,s net undercollected amount as of Ja31, 2001.
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In connection with the purchase, the State will also assume certain liabilities associated with the transmission assets.
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?
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Backup Transaction ) If the transmission sale does not occur within twyears for reasons beyond the parties, control, then if the State elects, SCE shall sell to the State SCE,s hydro generation assets.
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If the hydro assets are not worth $1.5 billion, then SCE will also sell the state after Decembe31, 2010 enough below-market-price-power to make up the shortfall.
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?
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Conservation Property ) SCE shall grant perpetual conservation easements to the State covering approximately 260,000 acres of its Big Creek hydroelectrrelated lands and 825 acres of its Eastern Sierra hydroelectric related lands.
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Some of the land may be deeded in fee.
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?
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Contribution by Edison International ) Edison International will refund to SCE not less than $400 million.
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This money will consist of a refund of approximately $293 million in estimated 2000 quarterly tax payments plus approximately $197 million in federal loss carryback tax savings.
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?
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Investment ) Edison International and SCE will invest not less than $3billion over the next 5 years in capital improvements for SCE.
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?
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Litigation ) SCE shall dismiss certain claims, including its takings afiled rate doctrine cases.
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?
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CPUC Regulation ) CPUC shall continue to regulate SCE using historicalprinciples of ratemaking.
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?
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Payment for Portion of QF Drop-off ) SCE shall pay an amount that represents that portion of the net short from January 18, 2001 to April 1,2001 that is attributable to QF,s not selling to SCE (due to SCE,s failure to pay the QF,s).
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SCE will securitize this amount.
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?
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Securitization ) SCE shall securitize its full net undercollected amou(approx. $3.5 billion).
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The securitization shall occur in two tranches (i.two different nonbypassable dedicated rate components).
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?
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The first tranche will occur after the passage of legislation and the signing of the definitive agreements and will cover the net undercollectedamount, less the gain on sale, plus interest on certain obligations in thenet undercollected amount.
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?
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The second tranche would be triggered if the transmission sale does notoccur within two years.
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Accordingly, the second tranche would not show up in rates for two years, if at all.
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?
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Buying the Net Short ) The State will be required to buy the net shortthrough December 31, 2002.
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After 2002 SCE will be responsible for coveringthe net short.
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?
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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 serviceratemaking period.
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?
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Next Steps (Definitive Agreements and CPUC Action): ?
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Definitive Agreements ) Once the MOU is signed, the next stage is tonegotiate definitive agreements which contain the specific terms of the transmission sale, as well as the specific terms of the various other relatagreements (e.g., the O&M Agreement, Transmission Services Agreement and thFacilities Services Agreement).
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?
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CPUC Action ) Prior to entering into the definitive agreements, the CPmust undertake certain actions (which include: establishing mechanisms forpreapproval 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).
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Works for me, but I have class on Thursday and will have to leave at 5 PM.
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That work?
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Best, Jeff
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Folks in Sacramento said that they haven't heard anything about it and aren't inclined to inquire.
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It's about 99% certain that we'll be "invited" to appear before the committee that's doing the wholesale price investigations, however, and very likely that we'll be served with a substantial number of questions in advance of that appearance.
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I'll stay on top of it and let you know just as soon as I do.
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If there's anything else, don't hesitate.
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Best, Jeff
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Greetings.
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I had a blast skiing--been way to long.
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I haven't called Ashish.
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I'll pick someone off of your list to call.
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Hope to see you soon.
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Best, Jeff
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