Audit of PX Credit Calculations

The California Public Utilities Commission (CPUC) adopted a PX Credit
Auditing procedure that establishes an ongoing audit of the California
Investor Owned Utilities' (IOU) calculation of their respective PX Credits.
The CPUC Energy Division selected IOU and ESP representatives (PX Credit
Audit Team) to prepare a list of auditors to perform this function from
which the Energy Division would make a final selection.

As a first step in selecting a list of auditors, the PX Credit Audit Team
would like to solicit nominations of potential auditors from parties
involved in the California Restructuring effort.  Nominees should be
independent and possess the technical capabilities to perform the audit and
must not be affiliated with an ESP, marketer, generator, schedule
coordinator or IOU.  In addition, nominees should have the resources
necessary to audit 3 IOUs in parallel.  Experience in gas industry
restructuring, electric industry restructuring, risk management or commodity
trading would be desirable.  Knowledge of the data structures and the
algorithms being employed by the IOUs in the calculation of their credit and
expertise in the California market structure and the functioning of the
Independent System Operator and the California Power Exchange would also be
beneficial.

If you would like to nominate a firm that you feel meets these
qualifications please respond to Don Fellows at fellowda@sce.com with the
name and mailing address of the firm not later than August 30, 1999.  The PX
Audit Team will review all nominations and will prepare a Request of
Interest and Qualifications (RFQ) to the nominated firms as appropriate.
The PX Audit Team expects to provide a final short list of auditors to the
Energy Division by mid-December 1999.


Don Fellows
Southern California Edison
Phone 626-302-8175
FAX 626-302-1626

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