text_combined: california 3 23 executive summary bottom line qfs better today utilities worse shape passing senate qf bill fails technical grounds assembly cal energy ruling provides possible escape qfs utility commitments california net short gas supply summer worsens qfs break contracts hedge funds acquiring utility commercial paper litigation expected 1 qf bill fails surprise twist ab 8 x qf bill failed assembly 48 24 republicans opposed three measures sdg e fix ab lx fix qf fix rolled one bill senate want three measures split concern raised san diego members regarding provisions wanted see separately bill form currently sb 43 x noted yesterday qfs await cpuc ruling tuesday 2 cal energy ruling sets stage dozens similar q f suits cpuc ruling less important cal energy ruling yesterday gave qfs another tactic escape commitments near bankrupt utilities cal energy reportedly would filed involuntary bankruptcy tomorrow friday law suit dozens hundreds suits identical filed calenergy expected qfs qfs reportedly see free utilities want sell direct merchant market possibly state also want avoid deal whereby state would force supply power stage 2 stage 3 alert contest measure ferc 3 summer outlook worsens outlook summer appears much grimmer state gas fired qfs alone manage extricate contracts utilities state net 10 000 mw short summer rather 5 000 mw much larger net short position fill much harder state treasurer angelides sell wall street qfs break contracts state 14 000 15 000 mw short essentially qfs successful court appears would longer part pool low fixed rate power state count onus appears treasurer angelides come rate schedule qfs may go ask state act forward cover gas contracts state would course charge privilege negotiate flexible rate structure 4 pressure mounts utilities none helps utilities situation fact qfs way contracts courts appears business base utilities reduced actually worse situation reportedly utilities commercial paper sold hedge funds one source put vultures moved types people litigate