January 28, 1999

Mr. James Galloway, Filing Clerk

Public Utility Commission of Texas

1701 N. Congress Avenue

P. O. Box 13326

Austin, Texas 78711-3326

Re:	Project No. 20176; Electric Utility Filings Pursuant to P.U.C. SUBST. R. 25.223(f) Unbundling of Energy Services

Dear Mr. Galloway:

Attached is Texas Utilities Electric Company's ("TU Electric") filing pursuant to Substantive Rule 25.223(f).

There is one matter that I would specifically call to the Commission's attention concerning this filing. TU Electric received a copy of a Memorandum addressed to "Electric utilities and interested parties" from the Honorable Steve Davis dated January 19, 1999, which, among other things, stated that the descriptions filed in this Project should include energy services provided by affiliates of utilities, as well as those provided by utilities. The Substantive Rule giving rise to this filing requirement, however, is clearly limited to descriptions of energy services provided by the utility itself, rather than those provided by affiliates. Substantive Rule 25.223(f) provides in pertinent part:

Affected utilities shall file descriptions of the energy services provided by the utility on forms provided by the commission.... (emphasis added)

The Substantive Rules clearly distinguish utilities from their affiliates. See Substantive Rules 25.5(3) and (17). This distinction, of course, is in keeping with the distinction in the controlling statute. See Sections 11.003(2), 11.004, and 31.002(1) of the Texas Utilities Code ("PURA"). Moreover, the Commission's jurisdiction concerning affiliates of utilities is specifically limited, when it comes to requiring reporting of matters pertaining to a utility's affiliates, to requiring reporting of transactions between the utility and an affiliate and nothing more. See PURA §§14.003(1) and 14.154.

Even though reporting of energy services provided by affiliates is not within the scope of Substantive Rule 25.223(f) or the Commission's jurisdiction under PURA, TU Electric, in an effort to be cooperative, is providing general descriptions of the various activities and energy services of its major affiliates. Quite frankly, TU Electric is not fully conversant with the detail of the activities and energy services provided by several of its affiliates, especially those that operate on an unregulated basis and those that operate in other countries.

I trust, therefore, that the Commission will find the attached information concerning affiliates sufficient.

Thank you.

Sincerely,

J. Dan Bohannan

Attachment