california update 2 3 23 01 davis transmission deal essentially dead reported early primary sticking point davis deal pg e pg e legal obligation supply california power given state net short position summer result last night ruling net short position doubles summer davis willing let pg e responsibilities legislature also recently discovered draft transmission deal deal removes capuc rate setting powers meaning rate hikes strong possibility according sources legislature horror discovery absolutely let happen davis becoming unpopular legislature realize term lt power contracts legislature also growing increasing angry davis realize lt contracts negotiated davis fully come affect 2004 additionally many legislatures discovering return home losing popularity districts face angry constituents result davis creditability starting suffer losing support democrats republicans davis warns senior republican leadership publicly make waves davis told senior republican leaders start talking press pointing fingers davis lack solid solutions california problems drag pete wilson previous administration mud original source deregulation debacle last ditch efforts could made regarding rate hikes however address past debt davis could order rate hikes last ditch effort action would address undercollection issue still high chance bankruptcy either larger generators commercial paper holders less still possible qfs time running forbearance period ended march 13