important update california legislation 08 23 01 received following additional information late yesterday speaker hertzberg chief staff regarding direct access legislation working way assembly relayed information informational hearing assembly committee bill yesterday sacramento see previous note attached detailed description da provisions bill new print bill likely issued today respect da governor apparently responsible temporary suspension da bill assembly ds market participants lobbied hard explaining since bill covers costs bonds dwr contracts exit fees reason suspend da governor resisting hard stating wants time market stabilize looks like governor plan 1 bill provides direct access 1 1 03 2 puc temporarily suspend da september 1 1 1 03 continuing work business customers eliminate significantly shorten suspension bill apparently also amendments stating customer switched august 23 2001 yesterday responsible dwr going forward contracts customer pay power consumed dwr purchased ious behalf jan 17 date switch bill apparently require customer switching yesterday sept 1 responsible dwr going forward contracts though details would work clear stated reason wanting insert amendment august 23 rd date prevent rush direct access sept 1 currently efforts break othewise dissallow contracts signed prior sept 1 finally bill apparently also give self generation priority direct access open season bill would set aside 250 mw short position year customers self gen self gen subscribed mws would go da bill including amendments amendments related issues supposed released today bill heard assembly committee monday afternoon continue work business customers improve da self gen provisions remains unclear whether sufficient support bill pass assembly politicians reluctant pass edison bail bill political pressure vote bailout significant growing governor working bill hard mirant actively working bill mirant passing around poll allegedly showing member votes bailout could lose election mirant also distributing letter implicitly threatening take edison involuntary bankruptcy bill passes bill also make senate lobbyist conversation yesterday senate president john burton said flatly anything much trade final weeks session possibility burton deal 50 50 respect bill provisions preventing edison paying wholesale providers dedicated rate component included edison representatives hearing yesterday announced edison intends issue first mortgage bonds pay suppliers edison also said assembly version bill edison believes would borrowing capacity issue first mortgage bonds info follow becomes available anyone questions hesitate contact best jeff original message dasovich jeff sent wednesday august 22 2001 8 08 pm dasovich jeff subject latest legislative version direct access 08 22 01 following summary direct access provisions bill language released afternoon reflecting deal davis cut assembly things fluid provisions could change significantly informed large business customers met davis hertzberg staff staff agreed amend da provisions make considerably favorable customers suppliers also said favorable provisions respect self gen would also added bill said new amendments could come early tonite tomorrow morning bill may heard tomorrow note addition da provisions bill also includes provisions 1 explicitly recognize px credit part edison undercollection 2 permit edison pay debts associated negative px credit bill authorize edison pay power suppliers however leaves portion edison debt edison management shareholders address summary direct access provisions program would begin january 1 2003 unclear would happen da january 1 2003 presumably decision suspend would stay california puc 90 days effective date bill every 6 months thereafter dwr would provide information puc showing net short position every 6 months puc would hold open season permitting customers switch da 20 kw customers would 60 days decide switch puc announced open season 20 kw customers would 180 days customers switch da would responsible paying 1 customer proportionate share utility undercollection 2 customer proportionate share dwr receivables power previously delivered dwr yet fully paid customers addition number customers elect choose go da open season exceeds net short da customers pay proportionate share dwr stranded contract costs number da customers exceed net short position stranded contract cost fees would assessed best jeff