california update 7 13 01 executive summary ferc settlement developments socal ed mou plan b cpuc new rate proposal ferc developments ferc publicly recognized autonomy regarding california power talks likely less public less autonomous role determining outcome debated refunds following analysis emphasizes multiple dimensions variables play california settlement negotiations bush administration influence ferc decides especially pat wood republicans influence certainly formal ferc supposed independent agency commissioners generally issue decisions without taking political lay land particularly regarding positions white house bush davis like surprise communication davis administration white house ferc free flowing interaction ferc white house frequent davis needed basis staff level contacts regular especially staff democrat commissioners administrative law judge c wagner probably recommend refund close 1 b commission go higher judge recommends would october forward wagner thinks may additional refunds ordered later wagner also strongly advised ferc bush well top advisors put price caps stick show real efforts deal issue even though steps run afoul free market position admin members great deal influence bush mou pan b late thursday 7 12 assembly speaker robert hertzberg called briefing business community leaders regarding new proposal alter terms edison mou new proposal abxx 82 reduces value socal transmission system 2 times book value state previously agreed pay 2 3 times book value 2 76 b given dire financial condition socal edison parent company eix legislature realizes unlikely see cash infusion 420 already promised eix assembly moderate democrats led keeley hertzberg feel 4 5 b generator refund profit state sale socal transmission lines additional 1 b dedicated rate component distant hopeful possibilities could fuel progress socal bail course two thirds suggestions require ferc approval pg therefore order save socal bankruptcy legislation governing dwr power purchases likely revised