california power 1 19 00 1 legislation passes short term measures long term measures said yesterday sb 7 x passed california state senate easily bill gives state immediate authority purchase power via department water resources february 2 nd department 400 million available finance power purchases expectations costs could easily rise 1 billion next week ab 1 x evolved longer term solution current form would authorize department water resources enter long term contracts opposed 15 day contracts sb 7 x buy power price cap 5 5 cents per kw h legislation expected pass today likely changed considerably upcoming two week period covered sb 7 x negotiations generators utilities state likely resume second piece legislation sb 6 x created uncertainty markets legislation create california public power authority bond issuance authority uncertainty concerns whether new authority address problem 12 billion outstanding debt owed utilities current text legislation focuses longer term measures expanding generation capacity improving efficiency yet legislation also says authority may issue bonds exercise power eminent domain enter joint power agreements buy sell land facilities necessary financing project general nature language leaves open possibility either issuing bonds finance past debts using eminent domain bond authority finance utilities enter ch 11 proceeding 2 default update 3 bush reported wednesday bush administration continues demonstrate little interest getting involved