california update p 2 5 29 01 executive summary senator keeley spearheads new plan b state offer little aid pg announcement could come afternoon afternoon later week sources report republicans working keeley felt shut process developed plan lightly publicized point last week however sources believe plan b likely enough republican support pass assembly senate likely much tougher fight opposition plan remains pessimistic able stop senate appears likely broaden base people would pay dedicated rate component unpopular borrowing elements joe nation florez plan b keeley new plan said set dedicated rate component socal deal part undercollect dedicated rate component would apply high end customers line would drawn would pay would still subject negotiation size dedicated rate component also subject negotiation socal suggested 3 10 12 years note sources report time dedicated rate component socal pay power going forward included plan b announced assembly certain whether additional dedicated rate component needed bond issuance enough cover cost power purchases dedicated rate component forward purchases needed 2003 2004 enough additional generation online power prices low therefore key question becomes cost power 2002 cost power high rates may increased time socal continue operating state would make secured loan secured transmission assets socal pay back remainder undercollect loan would paid back socal granting government lower rate return transmission system period 10 15 years provides incentive socal sell transmission system state since would making much money system happen value would credited toward loan return state would receive withdrawal prejudice filed rate doctrine case also socal would reduce price native power generation finally business customers including would pay dedicated rate component would right apply direct access power plan passed better 50 50 chance reported earlier constitutional challenge michael sturmwasser still likely go forward sturmwasser chiefly concerned fact plan results retroactive rate increase pay socal undercollect sources believe likely socal eventually sell transmission assets state plan passed therefore assets would become municipal making reduction puc authority constitutional legislature leaves pg e throws bankruptcy today discussions concerning pg e regarding plan b legislature currently legislature considering offering keeley plan b solution pg e plan b mentioned passes senate likely state purchase pg e bankruptcy assembly senate leadership talking seriously purchasing pg e bankruptcy though republicans remain strongly opposed state would likely sell pieces pg e except transmission assets would retain