The purpose of this meeting was to perform organizational tasks to a point where formal recognition as a Working Group can be requested. This meeting was facilitated by Jim Price of DRA.

Robert Berry, advisor to Commissioner Duque, welcomed the group and announced that the Commissioner's Scoping Workshop would be held May 20, 1996.

Internal Organization of Working Group, Process for Reaching Decisions

DRA presented a set of proposed practices for the working group, which were revised and agreed to. An attachment to these minutes includes the final proposed practices.

The CPUC's Roadmap decision (D.96-03-022, p. 35) states a sequence of tasks for unbundling, pricing, and rate design issues: (1) identify the components of electric services, (2) establish costing methodologies and perform cost studies, and (3) price the component services. The group agreed that this order of tasks is appropriate for each group of services.

PG&E provided a preview of its 7/15/96 proposal on separating rates into identifiable components. The group agreed that component services can be separated into two tracks (Track 1 to be completed in time for first phase of direct access on or before 1/1/98, Track 2 possibly at a later date).

Interactions between unbundling and PBR were discussed in broad terms, resulting in agreement that this working group would encompass PBR; substantive discussion will continue at the next meeting. Agreement was reached that revenue allocation for CTC should be considered by this working group, but that CTC revenue requirement and accounting are sufficiently different to be placed in a different working group.

Other issues (e.g., non-bypassability, "no cost shifting") were recognized but not discussed in detail.

DRA distributed a table summarizing input received prior to the meeting about issues of concern to this working group, and of overlapping or related concern between working groups, and emphasized that this table should only be considered as a preliminary draft for discussion with other working groups. Two clarifications to DRA's draft were suggested: (1) not phasing the restructuring task is what would affect the Commission's 1/1/98 implementation date, and (2) baseline rate design issues are of concern to this working group, not just the Low Income working group.

A draft mission statement for the working group, drawn from the Roadmap decision, was revised and agreed to. An attachment to these minutes includes the final mission statement.

The following possible areas for formation of subteams were considered: Coordinating, Analysis, PBR, Nonfirm, Customer services, Billing structures, and Special contracts. (Billing structures includes (a) format of what information is on bills versus other sources, and (b) interface with WEPEX BSB and DISI teams.) Three subteams were formed initially: Coordinating, Analysis, and Interpretation of Existing Tariffs. Subteams concerning PBR, Track 2 issues (i.e., "customer services" on the previous list), and billing structures are likely to be formed but will be considered further at the next working group meeting.

The Commission's schedule sets some landmarks for the functioning of the working group: (1) the Commissioner's scoping workshop on 5/20/96, (2) utility filings on 7/15/96 (proposals on separating their rates into identifiable components, and applications for PBR for utility distribution & limited portions of utility-owned generation services), and (3) target completion date of 6/30/97 leading to 1/1/98 beginning of Power Exchange, ISO, direct access phase-in, etc. Details of work products and related timing will be discussed further at future meetings.

1. Meetings on substantive issues are tentatively scheduled for May 9 and 29, either in the CPUC auditorium or at PG&E's Energy Center. The tentative agenda for 5/9 is: (1) identification of Track 1 vs. Track 2 issues, (2) PBR issues, and (3) issues concerning billing structures. (It is anticipated that the discussion of billing structures will include presentations by the utilities of the capabilities and limitations of their billing systems.)

2. A summary of consensus decisions reached at this meeting: (1) proposed practices (see attachment); (2) issues will be considered on two separate tracks, with specific issues for each track yet to be determined, but each using the steps of identifying service components, then performing cost studies, then establishing pricing; (3) CTC revenue allocation to be included in this working group, but not CTC revenue requirement or accounting; (4) PBR to be included in this working group, with a subteam likely to be formed; (5) mission statement (see attachment); (6) three subteams formed now and three likely for future formation (see above); and (7) tentative meetings on 5/9 and 5/29.