I - VEBA 3 TBO

Appendix I
	CALCULATION OF SFAS 106 TBO AMORTIZATION ADJUSTMENT
	Reduction of TBO Amortization Expense Included in Annual Accrual of SFAS 106 Costs if VEBA 3 Contributions in 1989 & 1990 Had Been Expensed Instead of Capitalized
			Amounts in
			000's		Reference
1.	1989 Pre-Funded PBOP Contribution 1		117,000		D.92-12-015, 46 CPUC 2d 499, 526
2.	1990 Pre-Funded PBOP Contribution 1		91,000		D.92-12-015, 46 CPUC 2d 499, 526
3.	Total Contributions for 1989 and 1990 1		208,000		Line 1 + Line 2
4.	Intrastate Factor		0.8043		Exh. Phase 2A: 404, Attach. 7-6, 7-7, and 7-8
5.	Intrastate Amount		167,294		Line 3 x Line 4
6.	Amortization Period		20		D.92-12-015, Ordering Paragraph 1.c
7.	Annual Amortization		8,365		Line 5 divided by Line 6
8.	Regulated Factor		0.9409		Exh. Phase 2A: 404, Attach. 7-6, 7-7, and 7-8
9.	Intrastate Regulated Amount		7,870		Line 7 x Line 8
10.	Expense Factor		0.9180		Exh. Phase 2A: 404, Attach. 7-6, 7-7, and 7-8
11.	Pre-Tax Intrastate Regulated Expense		7,225		Line 9 x Line 10
12.	Tax Factor		0.59254		(1 - .40746 (Combined Fed. and State Tax))
13.	After-Tax Intrastate Regulated Expense		4,281		Line 11 x Line 12
14.	Cumulative Pre-Tax TBO Adjustment for 1993 - 1998		43,350		Line 11 x 6
15.	Cumulative After-Tax TBO Adjustment for 1993 - 1998		25,687		Line 13 x 6
	Note 1: The Pre-Funded PBOP contributions consisted of tax-deductible contributions to Pacific's VEBA 3 trust.