Kenney Agenda Dec. Interim Opinion Regarding Phase 2A Issues

A - Refund

Appendix A

Summary of Refund Owed to Ratepayers

Pacific Bell Intrastate Regulated Operations

Phase 2A

1997Sharable Earnings Owed to Ratepayers

1998 Sharable Earnings Owed to Ratepayers

Refund Amount

$0

$27,987,927

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 12/31/2003) ¹

_

1.6453

Total Refund Assuming 10% Interest ²

$0

$47,199,912

Note 1: 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.

Note 2: Appendix A assumes a rate of interest of 10%. The actual rate of interest will be determined by the Commission in Phase 2B of this proceeding.


Appendix A
Summary of Refund Owed to Ratepayers
Pacific Bell Intrastate Regulated Operations
Phase 2A



	1997Sharable Earnings Owed to Ratepayers	1998 Sharable Earnings Owed to Ratepayers
Refund Amount	$0	$27,987,927
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 12/31/2003) ¹	_	1.6453
Total Refund Assuming 10% Interest ²	$0	$47,199,912


Note 1: 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.



Note 2: Appendix A assumes a rate of interest of 10%. The actual rate of interest will be determined by the Commission in Phase 2B of this proceeding.