A - Refund

Appendix A
Summary of Refund Owed to Ratepayers
Pacific Bell Intrastate Regulated Operations
Phases 2A and 2B
	1997Sharable Earnings Owed to Ratepayers	1998 Sharable Earnings Owed to Ratepayers	1999 VEBA 1 PBOP Trust Fund Withdrawal Owed to Ratepayers	TOTAL
Refund Amount	$0	$288,322,373	$136,218,000	$424,540,373
Interest Factor for 1998 (one half of principal x one half of 10% annual interest rate)1	_	1.0250	_	_
Interest Factor (10% annual rate compounded monthly from 1/1/1999 through 7/31/2003) 1	_	1.5784	_	_
Interest Factor (10% annual rate compounded monthly from 1/1/2000 through 7/31/2003) 1	_	_	1.4288	_
Total Refund With Interest	$0	$466,474,873	$194,630,647	$661,105,519
1. Note: Interest factor for 1998 and the monthly compounding of interest in 1999 and subsequent years is based on the guidance provided by (1) D.89-10-031, Ordering Paragraph 16, and (2) D.88-09-028, Ordering Paragraph 4.