A - Refund

Appendix A
Summary of Refund Owed to Ratepayers
Pacific Bell Intrastate Regulated Operations
Phases 2A and 2B
	1997 Sharable Earnings Owed to Ratepayers	1998 Sharable Earnings Owed to Ratepayers	1999 VEBA 1 PBOP Trust Fund Withdrawal Owed to Ratepayers	TOTAL
Refund Amount	$0	$0	$136,218,000	$136,218,000
Interest Factor for 1998 (one half of principal x one half of 5.37% Commercial Paper rate)1	_	1.0134	_	_
Interest Factor (5.22% 90 Day Commercial Paper interest rate compounded monthly from 1/1/1999 through 12/31/1999) 1	_	1.0534	1.0534	_
Interest Factor (6.33% 90 Day Commercial Paper interest rate compounded monthly from 1/1/2000 through 12/31/2000) 1	_	1.0651	1.0651	_
Interest Factor (3.64% 90 Day Commercial Paper interest rate compounded monthly from 1/1/2001 through 7/31/2001) 1	_	1.0370	1.0370	_
Interest Factor (1.70% 90 Day Commercial Paper interest rate compounded monthly from 1/1/2002 through 12/31/2002) 1	_	1.0171	1.0171	_
Interest Factor (1.23% 90 Day Commercial Paper interest rate compounded monthly from 1/1/2003 through 7/31/2003) 1	_	1.0072	1.0072	_
Total Refund With Interest	$0	$0	$162,371,181	$162,371,181
1. Note: Interest factor for 1998 and the monthly compounding of interest in 1999 and subsequent years is based on guidance provided by (1) D.89-10-031, Ordering Paragraph 16, and (2) D.88-09-028, Ordering Paragraph 4.