K - Tax on Adjustments

Appendix K
Reconciliation of Income Tax Normalization & Flow Through for Adopted Audit Adjustments Other than CHCF-B
			1997 Increase/(Decrease) to Pacific's NOIIntrastate Regulated Amounts
			Adopted		Normalized	After-Tax
Adjustment Description		Reference	Audit Adj.	Tax Rate	Tax Effect	Effect
SFAS 106: VEBA 3 Transfer		Appendix H, Line 7	9,838,000	40.746%	(4,008,591)	5,829,409
TOTAL			9,838,000		(4,008,591)	5,829,409
			1998 Increase/(Decrease) to Pacific's NOIIntrastate Regulated Amounts
			Adopted		Normalized	After-Tax
Adjustment Description		Reference	Audit Adj.	Tax Rate	Tax Effect	Effect
SFAS 106: Regulatory Asset Write Off		Appendix F, Line 10	252,751,000	40.746%	(102,985,922)	149,765,078
SFAS 106: PBOP VEBA 3 TBO Adj.		Appendix I, Line 16	31,871,000	40.746%	(12,986,158)	18,884,842
SFAS 106: VEBA 3 Curtail. Loss		Appendix I, Line 27	38,264,000	40.746%	(15,591,049)	22,672,951
SFAS 106: VEBA 3 Transfer		Appendix H, Line 14	60,012,000	40.746%	(24,452,490)	35,559,510
TOTAL			382,898,000		(156,015,619)	226,882,381
			1999 Increase/(Decrease) to Pacific's NOIIntrastate Regulated Amounts
			Adopted		Normalized	After-Tax
Adjustment Description		Reference	Audit Adj.	Tax Rate	Tax Effect	Effect
SFAS 106: PBOP VEBA 3 TBO Adj.		Appendix I, Line 14	5,312,000	40.746%	(2,164,428)	3,147,572
Pension Trust Fund Withdrawal		Exh. Phase 2A: 409, Table 7 of 7	68,749,000	40.746%	(28,012,468)	40,736,532
TOTAL			74,061,000		(30,176,895)	43,884,105