text_combined: california power 1 15 01 vince kristin mentioned might interested receiving daily updates california situation hope well let us know require additional information rj forwarded robert johnston hou ect 01 16 2001 08 08 robert johnston 01 15 2001 09 10 pm michelle cisneros hou ect ect cc gary hickerson hou ect ect james steffes na enron enron richard shapiro na enron enron jaime gualy na enron enron john greene lon ect ect jeff kinneman hou ect ect kristin walsh hou ect ect scott tholan corp enron enron subject california power 1 15 01 talks continued toward tuesday deadline markets focused california electricity crisis state officials around governor gray davis toughened rhetoric couple fronts even confirmed would market early tuesday taking bids energy paid state california one problem front still much producers want charge state electricity reported last week davis aides want pay around 50 55 dollars per megawatt hour suppliers want 75 treasury secretary summers suggested auction best way determine price california officials taking less free market approach still hope set price negotiation long term contracts sources washington sacramento california increasingly view governor davis positioning government establish long term power contracts generators could passed utilities following bankruptcy near term week legislative activities sacramento create vehicle state credit backing purchases power would obviate need super priority borrowing finance power purchases utility bankruptcy 1 audit untangling utility relationships california officials also toughened rhetoric debt repayment front say results preliminary audit show half 9 12 billion utilities say owe actually owed power bought corporate relations strange situation due fact one holding company owns power generating power distributing companies holding company umbrella course means power pg e southern california edison bought highly inflated prices bought bad news tense negotiations sources confirm davis increasingly understood state finance role crucial part potential solution told sources afternoon willing use state credit eliminate risky debt premium pg e sce charged suppliers shaky finances willing extend current 10 rate increase utility customers paying far beyond initial 90 day deadline return demanding companies prepare share burden debt reduction return state help credit extension 2 debt restructuring guarantees direct state money davis also told videoconference believes 12 billion back debt owed utility companies cleared 90 day forbearance period whether period agreed creditors something clear right davis idea laid meeting use forbearance period securitize debts sell utilities forward rate base establishing medium term repayment plan backed continued state guarantees cases restructured debt would resolved decade without direct use taxpayer money utilities use positive margins paydown debt one reasons davis wants stay close 50 55 megawatt charge maximizes rate utilities pay debt strong chance davis agree use state guarantees sweeten pot end negotiations remains opposed using direct state money frustrates clinton administration utility creditors davis yet shown much flexibility 3 eminent domain reregulation perhaps frustrating washington dc free market crowd treasury white house continued comfort davis group political advisers non market solutions energy crisis although governor aides actually believe weapon way force eventual agreement actual solution talk returns frequently non market mechanisms ultimate weapon enforce compliance tuesday deadline make progress thing looks like turn genuine crisis use powers condemnation take plants equipment run close political aide davis said absorb plants transmission lines reserved parking places executives legislature would agree second