Order Instituting Rulemaking to Establish Policies and Cost Recov	ery Mechanisms for Generation Procurement On October 29, 2001, the commission issues an order instituting a rulemaking
to establish ratemaking mechanisms to enable SCE, PG&E and SDG&E to resume
purchasing electric energy, capacity ,ancillary services and related hedging
instrument to full their obligation to serve their customers once DWR's
authority to purchase on their behalf ends (December 31, 2001). At that
point, the UDCs, not DWR, will have to pick up anything not covered by
retained generation and the DWR contracts.  The Commission will also address
proposals on how renewable resources should be included in the mix of
generation serving the state. The OIR will have a significant impact on
procurement practices in the state on a going forward basis.    The ruling
states that if you are interested in being on the service list for this
proceeding, a letter must be sent to the docket office stating that fact
within 15 days (by next Monday). 

Bottom line is do you want me to continue to monitor (and perhaps get
active) in this proceeding.  Please let me know by the end of the week so
that I can send in the required letter.     


Jeanne Bennett     

