california update 2 23 01 please contact kristin walsh x 39510 robert johnston x 39934 additional information summary gov davis expected announce plan today however breakthrough deals negotiations would support plan sources report least 7 8 democrats indicated consumer advocate harvey rosenfield would join republicans blocking proposed bailout governor davis coalition would enough kill transmission purchase proposal emergency legislative session closed current legislation would need introduced new session 1 bankruptcy outlook advisor mbia attempting pull creditors informal pre petition committee however creditors finding interests always inter creditor politics becoming active point instance bc hydro inclined take aggressive action even though one biggest creditors power hydro operating huge margin e owe companies gas used produce power reliant using squeaky wheel theory took hard line governor succeeded extracting partial payment dwr exchange 30 day agreement supply power creditors seen thinking along similar lines generators qfs whole organized yet qfs negotiating state reducing amount prepared get paid power supply negotiations reportedly going well deal sight reportedly state offered pay qfs 07 kwh qfs want 09 kwh mbia credit insurer words company issues revenue bonds mbia fee reimburse bondholders losses certain level e g first 10 15 believe one time stood municipal bond insurers association aaa rating 2 legislative activity extraordinary session closed governor ends bills session dead would reintroduced new bill numbers run process bills already heard committee probable bills taken vote legislator many hearings bills week try get many extraordinary session ends