1 These estimates do not reflect the potential for distributed generation.

² Source: California Energy Commission.

³ The PUC regulates investor-owned utilities. Municipal utilities (for example, Sacramento Municipal Utility District) and irrigation districts (for example Imperial Irrigation District) are self-regulating public agencies.

⁴ The Biennial Resource Plan Update, I.89-07-004.

⁵ PUC Decision (D.) 95-12-059.

⁶ Statutes of 1996, Chapter 854, Brulte.

⁷ Competition Transition Charge.

⁸ PUC Decision (D.) 99-05-051.

⁹ The ISO combines the control areas of PG&E, SCE and SDG&E; reserve margins are calculated on an ISO-wide basis.

¹⁰ "Notice to Market Participants", ISO, undated.

¹¹ It should be noted that in order to maintain a reliable transmission system the WSCC developed Control Performance Standards that require each control area, such as the CAISO, to monitor its frequency every ten minutes. The average for each six 10-minute periods during the hour must be within specific limits as defined by the North American Electric Reliability Council (NERC). For June 13^th the CAISO had 29 Control Performance Standards (CPS2) violations of which 17 were attributed to uninstructed deviations. The CPS2 violations are still under investigation and could result in the WSCC assessing monetary penalties to the CAISO. The CAISO will provide further information as it becomes available.

¹² PG&E's previous all-time high peak load was 23,100 MW.

¹³ The customers that were shed include commercial, industrial and residential customers.

¹⁴ The rotating outage block system has undergone little analysis or review in decades, and is ripe for revisiting. After being used for the first time ever on June 14, the system was criticized as being potentially unfair to low-income neighborhoods (no evidence of such unfairness was uncovered in a preliminary PUC staff analysis), and inefficient in its operation. PG&E inadvertently blacked out at least one critical facility - the Good Samaritan Hospital in San Jose.

¹⁵ This estimate applies the wholesale spot price of energy, as published by the PX, to the total volume of energy consumed by retail customers of the State's investor-owned utilities and by consumers who have opted to buy their energy from third parties (electric service providers or ESPs).

¹⁶ Utility bills are comprised of a rate for transmission service, which is regulated solely by FERC, and for distribution service, which is still regulated by the PUC and for "generation" which is the rate that reflects the wholesale power market that has been restructured.

¹⁷ Nantahala Power & Light Co. v. Thornburg, 476 U.S. 953, at 970; 90 L.Ed.2d 943; 106 S.Ct. 2349 (1986)

¹⁸ Public Utilities Code Section 739 and PUC Decision (D.) 89-09-043.

¹⁹ The information refers to prices in the Power Exchange's Day-ahead market.

²⁰ Source: Electricity Oversight Board.

²¹ San Francisco Chronicle, July 27, 2000, page A8.

²² The federal appeals courts have not unanimously endorsed this approach.

²³ The resistance of the ISO and wholesale generators to disclosure of information about power plant operation or market behavior may be unlawful to the CPUC or EOB. The Federal Power Act explicitly provides that a state commission may examine the "books, accounts, memoranda,, contracts, and records..." of an electric utility or an exempt wholesale generator selling to an electric utility or an associate or affiliate of an exempt wholesale generator, "...wherever located, if such an examination is required for the effective discharge of the state commission's regulatory responsibilities affecting the provision of electric service, subject to appropriate restrictions on subsequent disclosure by the commission. 16 USC section 824(g). Any attempt to resist disclosure of power plant operations data, including its relevance to market behavior, on the basis of an ISO tariff provision approved by FERC is undermined by the Federal Power Act's provision precluding commission jurisdiction over "facilities used for the generation of electric energy...." 16 USC section 824(b)

²⁴ Power plant names and capacities confidential per ISO.

²⁵ PUC staff study.

²⁶ Source: City of Santa Clara

²⁷ Source: Independent System Operator

²⁸ Southern California Edison Company, et al., (1995) 70 FERC ¶ 61, 215, at p. 61,677.

²⁹ "Digital Economy 2000", US Department of Commerce June 2000

³⁰ See, for example, "Electricity Restructuring: Deregulation or Reregulation, February 2000, by Severin Borenstein and James Bushnell.

³¹ PUC staff study.

³² Ibid.

³³ Public Utility Regulatory Policy Act (PURPA) 16 U.S.C. §2601 et seq.

³⁴ The Public Benefit of California's Investment in Energy Efficiency, Mark Bernstein, Robert Lempert, David Loughran, and David Ortiz, MR-1212.0-CEC, 2000.

³⁵ Cal. Pub. Res. Code §§ 21000 et. seq.

³⁶ 42 U.S.C. §§ 7401 et. seq.

³⁷ Pub. Res. Code §21080(b).

14 Cal. Code Reg. §15269.

³⁸ Western Mun. Water Dist. v. Superior Court,187 Cal.App.3d 1104 (1986), Castaic Lake Water Agency v. City of Santa Clarita, 41 Cal.App.4th 1257 (1995).

³⁹ Cal Health and Safety Code, §§39002, 40001.

⁴⁰ California Almanac of Emissions and Air Quality, Air Resources Board (1999).

⁴¹ Market Surveillance Committee Report, July 6, 2000.

⁴² See "Electricity Restructuring: Deregulation or Re-regulation?" page 9, February 2000.