This letter has been typed for public perview from original on June 5, 1998

May 28, 1998

Eileen M. Smith, M.Arch., CEO
Solar Development Cooperative
3535 East Coast Highway
Corona del Mar, CA 92625

Dear Ms. Smith:

Thank you very much for your thoughtful and incisive email letter dated May 20, 1998, in which you noted that the California Public Utilities Commission does not include onsite distributed generators in its list of Energy Service Providers. Your letter reached the Office of Ratepayer Advocates, which advocates the interests of all California's utility customers before the California Public Utilities Commission, in part, by promoting greater customer choice.

Your letter pointed out that electricity provided on the customer side of the meter can offer customers a competitive option to service through the wires. One of the purposes of electricity restructuring is to open up new choices to consumers, including choices of renewable energy. In that spirit, the Office of Ratepayer Advocates is joining with others to request that the PUC address this issue in a proceeding to identify and, where feasible, remove market barriers for onsite generation, including solar photovoltaics. We are making this request in the form of a letter to the PUC and a "Statement of the Supporting Parties" which are attached. Although the matter of the listing of Energy Service Providers is not explicitly called forth in the Statement, the Statement's definition of Energy Service Provider specifically includes entities providing service on the customer side of the meter. The Commission is also asked to look into possible improvements in solar net metering and interconnections.

If the Commission opens the proceeding that we request, you would have the opportunity to state your views and concerns to the Commission about listing of onsite distributed generators as ESPs, and any other matters that you might wish to discuss about creating of a level competitive playing field for renewable and distributed generation.

This proceeding may take time to begin, and, once started, may take up to eighteen months to conclude. Still, it is important to get started. If you wish to support this request for the Commission to open such a proceeding, please mail a signature page on business letterhead with the following heading:

Solar Development Cooperative (see sample where your name or business name goes here) is a cosigner of the letter and statement of June 5, 1998 to President Bilas requesting that the CPUC open an OIR into the UDC role in distributed generation.

Sincerely,

(your signature and title)

Jay Morse, ORA
505 Van Ness Avenue, Suite 4102
San Francisco, CA 94102

Please call Mr. Morse at 415-703-1587 with any questions about this letter. Please be certain that the signature page reaches Mr. Morse by June 4, 1998. If necessary, you may fax it to his attention at 415-703-1981.

Sincerely,

Michael D. McNamara, Chief
Market Development Branch
Office of Ratepayer Advocates

Attachment

Photovoltaic Rooftop On Historic Carlisle House