DIRECT ACCESS WORKING GROUP
               MARKET RULES COMMITTEE B
             PROPOSED POSITION STATEMENTS

Note:  These draft position statements are preliminary and for discussion
purposes.


ISSUES  - Utility Distribution Company (UDC) Obligation To Serve - What is it?
Who is the provider of last resort?

POSITION  -

The UDC will have the obligation to connect customers to the electric
distribution system
and deliver energy from the transmission system  and generation markets to the
customers.

The UDC will have the obligation to plan, construct, operate, and maintain the
electric distribution system (UDC wires), including responding to customer
inquiries and customer outages.

The transmission company will have the obligation to provide non-discriminatory
transmission delivery service to all customers.

The UDC will have the obligation to procure energy via the PX for UDC full
service customers and UDC real time pricing customers during a transition
period.

Many functions, such as billing, metering, and energy procurement could be done
by entities other than the UDC.  The UDC will only have the obligation to
provide those services to UDC full service and UDC real time pricing customers.

The UDC  will be the provider of last resort for energy and related services
during a transition period.

The UDC obligation to serve ends at the customers service point, except that
metering equipment will continue to be a UDC responsibility for UDC full
service and UDC real time pricing customers.

PROS -  Customers have a choice of suppliers for services that could be
provided by entities other than the UDC.

CONS  -  None identified.


Drafted by George Samaniego/SDG&E6/18/96

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

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