california update 6 5 01 executive summary edison mou condemned friday cpuc meeting idle plan z angelides hides state budget concerns house committee vote energy relief edison mou doubtful unusually calm settling california legislature socal edison potential bankruptcy finally affected relentlessly optimistic investment bank analysts company shareholders reported plans b z solid plan save company executives even fearful predictions may come fruition last days edison executives begun pointing hard cpuc meeting friday make break event company meeting davis mou plan buy socal grid chance preventing potential bankruptcy plan essentially dead although governor daivs yet say press releases final nail happen cpuc adjourns friday meeting without voting several necessary mou provisions unless cpuc makes last minute emergency amendment agenda deal dead despite socal support letting deal stand past deadline sources indicate cpuc president loretta lynch holds reservations mou continues distance davis attempting influence policy making edison executives spent last investor phone conferences warning june 8 would see substantially increased risks creditor induced bankruptcy davis plan dies cpuc interesting since one else seems focused date edison began mentioning late last week however less threat bankruptcy two weeks reported several times earlier everyone given mou long friday cpuc meeting plan z shows little progress meanwhile unhurried pace toward plan z reported last friday gained little progress legislators continue pin point plan secure election votes time weigh need rate hikes california corporate home electricity users hash state spending even electricity purchases spite better expected levels conservation state electricity expenditures last month rose average 79 day recent rate increases mean spending state calls question reassuring angelides scenario california budget prospects later year california budget crunch even worrisome idle plan z increasing evidence last month conference call state treasurer angelides little misleading conference call angelides claimed state comptroller connell many financial committee numbers wrong angelides argued 7 2 b already spent buy power since january really total amount authorized spending late august fact said 4 3 b spent sources indicate angelides technically correct use spent mean amount money checks written different amount money california already promised energy suppliers already supplied energy state fact angelides speaking state fact already promised pay 7 b energy already consumed total committed topped 8 b time state gets power bonds auctioned august already spent 12 b back dipping general fund idea rans auctioned power bonds get issued still option general fund make august nearest answer cash flow deficits lies part painful process legislature undertaking another round huge electricity rate hikes securitize debt issuance hope hikes bridge gap new capacity brings wholesale rates debts repaid near term path bringing generating assets line immediately 3 500 mw qf plants line cash flow problems settling needs wrapped settling pg e edison trade creditor issues makes legislature leisurely approach rate hike haircut situation troublesome energy relief house energy commerce committee scheduled vote h r 1647 emergency electricity relief act tomorrow 10 00 bill twice postponed include provisions price caps course mark sources indicate possible even likely democrat could offer price cap amendment rep waxman ca offered price cap amendment earlier mark bill subcommittee level waxman amendment rejected along party lines republicans 2 democrats voted nay sources inside joe barton office report staff members meeting work compromise price cap issue nothing resolved afternoon discussions terminated favor open discourse committee tomorrow since agreement reached compromise language expected offered amendment tomorrow would something leaders republican democrat sides crafted together therefore would likely pass sources indicate committee expect waxman possibly others offer price cap language expected pass