DAWG TEAM B
                   SECTION 7.4 DRAFT
                  David Croyle, SDG&E
                    July 16, 1996


.. . .
7.4  UDC Requirements

7.4.1  Obligation to Connect

The UDC would continue its obligation to connect customers to the system
whether the customer procures energy through Direct Access or through the Power
Exchange.  This obligation is tantamount to providing access to the retail
market but  is subject to the UDCs credit worthiness evaluation according to
CPUC rules.

Pros:
Cons:

7.4.2  Custodian of Customer Information

The UDC should serve as custodian of customer information which it has
acquired and maintained to perform its pre-restructuring utility obligations.
Information may be either generic or customer-specific.  Customer-specific
information can be obtained by a customer or qualified agent under CPUC rules
for releasing customer-specific information.  Access to customer-specific
information requires authorization in writing by the customer.  Generic
information can be obtained by qualified third parties with no need for
customer consent since no confidential or proprietary information about an
individual customer is contained.  A fee for the information may be charged
based on the cost of preparing the information for the customer or its agent.
Information which is collected subsequent to January 1, 1998 by the UDC in
order to fulfill its more limited obligation as the regulated distribution
utility shall remain the exclusive property of the UDC and need not be shared
with the customer or its agent except where the UDC serves as the default
provider and no other sources are available.  These post-restructuring
restrictions shall also apply to peripheral information gathered by the UDC but
is not in support of UDC obligations.
Pros:
Cons:

7.4.3  Billing for/Remittance of Revenues for Energy Service Providers

The UDC is responsible for billing, payment processing and collections
pertaining to the services which are provided exclusively by the UDC, that is,
monopoly distribution services.  The UDC also retains the obligation to provide
billing, payment processing and collections services for any competitive
distribution services for which the UDC is default provider.  The UDC shall
also be responsible for billing PGC, CTC and ISO/TO charges.

The end-use customer is responsible for the remittance or payment of these






charges to the UDC and for all commodity charges whether purchased through the
UDC or a retailer.  If the retailer fails to pay the UDC on behalf of the
end-use customer, the UDC will attempt to collect all monies from the end-use
customer who remains the customer of record.  The UDC enforces payment by
exercising exclusive shut-off rights according to CPUC rules.

Pros:
Cons:

7.4.4  Coordination of Load Forecasts to Power Exchange

The UDC will provide its system load forecast to the Power Exchange.  The Power
Exchange will provide its total forecast to the Inderpendent System Operator
(ISO).  The ISO will determine the dispatch for generation and inform the Power
Exchange of the UDC residual forecast it calculates from subtracting out
bilateral arrangements submitted by scheduling coordinators.  The UDC is
responsible solely for the enrgy which is not provided through scheduling
coordinators which are able to settle with the ISO on an hourly basis.


Pros:  This minimizes the role of the UDC in determining the amoung of non-UDC
energy is required through the Power Exchange.
Cons:  The UDC will face some imbalance risk if the scheduling coordinators
cannot accurately settle on an hourly basis.  This is exacerbated in the event
of load profiling for customers who served by non-UDC providers who do not
settle accurately with ISO on an hourly basis.  This creates a settlement
issues between the UDC and the non-balancing retail provider.

7.4.5  Responsibility for Safety

The UDC retains the exclusive right and obligation to ensure the safety and
security of the distribution system.  Safety-related services are deemed UDC
monopoly services and may not be performed by third parties except where
outsourced by the UDC to qualified third parties and under its control.  In no
case shall the customer or its agent undertake any action which has
implications for the safety and security of the distribution system without the
express permission of the UDC.

Pros:
Cons:

----------------------------------------------------------
George M. Samaniego - Distribution Management & Strategies
Principal Engineer, X8266, PINS SAMANIEG, Mail CP5203A

.