ALJ/MLC/epg ALTERNATE DRAFT H-14a

2/8/2001

Decision _________________

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking on the Commission's Proposed Policies Governing Restructuring California's Electric Services Industry and Reforming Regulation.	Rulemaking 94-04-031 (Filed April 20, 1994)
Order Instituting Investigation on the Commission's Proposed Policies Governing Restructuring California's Electric Services Industry and Reforming Regulation.	Investigation 94-04-032 (Filed April 20, 1994)

ORDER ADOPTING A TOTAL GENERATION COST
BENCHMARK IN RESPONSE TO DECISION 00-12-065

Summary

This decision adopts a total generation cost benchmark of 6¢/kilowatt-hour (kWh) for Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE) and San Diego Gas & Electric Company (SDG&E). The utilities are provided the flexibility to enter into appropriate contracts and financial instruments to meet this benchmark and will not be subject to reasonableness review if the benchmark is met.