Outline for 8/26 Recommendation to Commission

1. Executive Summary

2. Introduction
   1. Necessity for direction from CPUC--Edison
      1. Items around which group has achieved consensus

      2. Items that need prompt Commission decision

   2. Description of the extent of unbundling (end state) and process decisions needed--Describe relationship between Track 1/Track 2 and the Option 1-4 framework--PG&E

   3. There are multiple proposals that have been made by the various parties

3. Define options--explain distinction between the various options regarding the degree of unbundling
   1. Defer distribution unbundling issues entirely until after 1/1/98--Edison--James Lehrer

   2. Set process in place now to identify and complete further unbundling post 1/1/98--PG&E--Dave Rubin

   3. Selective distribution unbundling by 1/1/98 and additional unbundling post 1/1/98--SDG&E--David Croyle

   4. Comprehensive distribution unbundling over time beginning by 1/1/98--CEC--Mike Jaske

   5. Fundamental reworking of the way in which utilities obtain earnings--option 4 plus additional unbundling of capita--Agland

4. Option 1
   1. Description of the extent of unbundling
      1. Track 1 items

      2. Track 2 items

   2. CPUC Policy Decisions
      1. that need to be made

      2. that need to be clarified

   3. Sequence of analyses and CPUC decisions to implement the option
      1. Describe the information requirements for Track 1 and Track 2 items

      2. Describe the procedural and analytical steps that need to be taken for each set of items

      3. Make a proposed schedule for addressing the requirements in (1) and (2)

   4. Projected implications of options: Characterize the range of opinions
      1. Extent of expected customer participation by customer type, size, or other important feature

      2. Cost-shifting

      3. Utility incentive structure

      4. Other issues

   5. Summary of pros and cons--or as an Appendix--This is the section in which parties can "file" their position on the option in question.

5. Option 2--repeat subsections as per Option 1

6. Option 3--repeat subsections as per Option 1

7. Option 4--repeat subsections as per Option 1

8. Option 5--repeat subsections as per Option 1