text_combined: california update 3 22 01 executive summary yet unnumbered rescue bill davis made senate floor exemption gas fired qfs bill proposed sen keeley could forestall involuntary bankruptcy filing passed draft cpuc order would give utilities another 15 days rate hikes pay qfs negotiations qfs complicated issue payments owed utilities dwr senators demanding utilities set trust fund rate revenues pay back dwr calenergy ruling reported bloomberg pm attractive option qfs looking least temporarily escape long term supply contracts edison neither cpuc legislature exempts gas fired generators new rate structure immediate involuntary bankruptcy filing expected however exemption implemented bankruptcy filing would delayed 1 qf bill makes senate floor cpuc bill number yet known mock form following repeals puc code section 390 set formula qfs deregulation amends portions ab lx ensure dwr receives money power purchases includes provisions issuance bonds includes provision sdg e rates since covered legislation bill passed senate energy 8 2 also passed senate appropriations committee 8 2 headed senate floor 2 senator comments bill keeley author bill presented bill would allow puc decide qf contracts proper authority debate issue opposition portion bill regarding fact bill provides guidance puc regarding voided costs natural gas fired qfs republicans offered amendment section 390 repealed gas fired generators keeley concerns amendment keeley stated think limit puc flexibility drafted amendment broad also indicated gas fired utilities legitimate issue draft order said puc order needs amended keeley confident puc recognized discussion past 48 hours 3 opponents qf bill following people testified opposition qf portion turn delta power qf syke energy john hancock financial california manufacturers association crockett cogeneration independent energy producers clean power campaign pg e sce gas fired qfs testified opposition noted line couple months come back line unless issues addressed response qfs getting paid sen bowen stated utilities pay qfs directed draft order would personally see go bankruptcy 4 pg e sce testimony sen battin asked utilities draft order states change rates qfs utilities must pay qfs within 15 days whether utilities would abide order pg draft order would lower qf cost 140 million pg e cut point asked point blank whether answer battin question yes battin bowen murray asked whether yes pg e rep stated would issue payments owed iso dwr resolved iso costs purchases included dwr payments pg e would problem sce response money coming less money going could comply puc order 5 payments dwr senator sher asked utilities regarding requirement ab lx utilities set aside moneys owed dwr purchasing power collect ratepayers trust fund sce responded still negotiations dwr terms conditions several legislators responded angrily part bill trust fund set pg e noted setting money aside would state much sen sher ended conversation stating utilities set trust fund tomorrow would either pass emergency legislation go violating law lx provisions tim gage dept finance noted governor support entire bill noted lx provisions would ensure dwr gets paid pg e also testified opposition provisions senator bowen made following statements senator peace announced received another notice 500 million appropriation needed purchase power approve funding unless pg e sce drop challenge puc regarding dwr issue also stated puc could always raise rates way resolve issue