Minutes of 12/3-4/96 Ratesetting WG

Note in the following that future meetings have been scheduled, and that 
the Analysis subteam will be preparing a consensus motion to the CPUC for an 
Interim Decision on the limited topic of retail transmission pricing, for 
inclusion in the March 1997 WEPEX Phase 2 filing to FERC.

Minutes of 12/3-4/96 Ratesetting Working Group Meetings
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Analysis Subteam, 12/3/96:

1.  Transmission pricing for the WEPEX Phase 2 filing was discussed, 
resulting in a consensus, which was endorsed at the full group meeting on 
12/4/96, on the following generally-stated principles (official wording 
to be developed through further discussion) for a motion to the 
CPUC for an interim decision in February 1997, for inclusion in the WEPEX 
filing:

a.  CPUC authority is the closest to reflecting current retail rate 
design concerns in California, so FERC should defer to the CPUC on retail 
transmission rate design.

b.  Rate design should not be the subject of extensive discussion at this 
time, due to complex changes that are occurring, and due to AB 1890's 
rate cap.  For the initial two-year period, the current cost allocation and 
rate design methodologies will be maintained.  Interested parties will 
work diligently during the two-year transition period, for transmission 
pricing, specified in AB 1890, to propose a cost allocation for the 
subsequent period.  This will present the opportunity to seek further 
consistency among utilities' methodologies.

c.  The cost allocation and rate design that parties are asking to be 
approved is consistent with CPUC-approved methodologies.

Further discussion will occur to develop and present this proposal to the 
CPUC.

Full group, 12/4/96

1.  Announcements:  A text search engine has now been implemented on the 
Web sites for the Ratesetting and Direct Access working groups.

2.  WEPEX transmission issues were discussed on 12/3 at Analysis 
subteam.  The subteam's recommendation was approved and referred back to 
the subteam for follow-up.

3.  A prehearing conference is scheduled for 12/9/96 on generation PBRs.  
Distribution PBRs will occur later.

4.  The majority of the meeting consisted of presentation of the 
proposals to be filed on 12/6/96 by the utilities.

5.  Discussion of rate case plan issues will occur after parties have 
reviewed the 12/6 filings.

6.  Meetings were scheduled for January through March 1997, starting with 
a full group meeting on 1/7/96 at PG&E Energy Center and Analysis subteam 
on 1/8/96 in Room 4010 at CPUC.  The subsequent meetings are posted on 
the working group's Web site.