Henry M. Duque, Commissioner, concurring:
     
     I concur with the decision of my colleagues to designate a proposed
  policy decision that will become the primary focus of further inquiry,
  hearings, and comment.
     I support the wholesale-power-pool proposal as the proposed policy
  decision.  The wholesale-power-pool is the preferred first step in
  reducing regulation and replacing regulatory oversight with market forces.
  I believe that the wholesale-power-pool proposal will increase the
  likelihood of lower rates for all Californians.  In my short time on this
  Commission, I have heard the strong concerns about high California
  electric rates from residential, commercial, agricultural, and industrial
  customers.
     I believe this proposed policy will also provide the benefit of a
  single market-clearing price for all customers similarly situated. 
  Moreover, the wholesale-power-pool promises a more gradual transition to
  an open market while minimizing price volatility.  Also, the
  wholesale-power-pool will not require that customers negotiate new
  contracts with power suppliers.
     I  commend Commissioner Knight for his preparation of detailed
  alternative rules for restructuring California's electric industry.
  Commissioner Knight's proposal calls for a direct transition to a retail
  market, where consumers of electricity have a direct-access-market linking
  them to generators who sell power directly to consumers. The thoughts
  contained in his proposal advance this regulatory process by
  systematically delineating many of the policy choices that remain open in
  the proposed policy decision.
     Both the wholesale-power-pool and the direct-access-market proposals
  offer additional policies that are likely to have profound consequences
  for California's consumers of electricity and for the shareholders of
  Pacific Gas and Electric (PG&E), San Diego Gas and Electric (SDG&E), and
  Southern California Edison (SCE).  I have issued a statement and this
  concurring opinion because I have reservations that prevent my full
  endorsement of several of the policies considered in the proposed policy
  decision.  My statement, which is attached to this decision, provides a
  detailed discussion of my principal concerns.  I hope parties providing
  comments on the proposed policy decision will address these concerns.
     
                                   /s/ Henry M. Duque__
                                          Henry M. Duque
                                           Commissioner
     
  May 24, 1995
  San Francisco, California