california update 3 27 01 executive summary undercollet remains sticking point utility creditors especially qfs involuntary bankruptcy likely issue addressed today capuc hearings capuc rate increase set 40 pending dwr power purchase details davis defends rate increase position distances capuc qf generator undercollect may invitation involuntary bankruptcy reported last week qf sitting waiting hear capuc say unfortunately may qfs want hear utilities undercollect addressed today capuc hearings could well provide invitation qfs generators file involuntary bankruptcy socal pg e recent rate hikes proposed capuc specifically dictate revenue generated rate increases used pay utility past debt leaving qf little hope recovery qfs obviously dismayed capuc draft order decision passed currently reads involuntary bankruptcy filing still likely capuc holds rate increase hearings today reported yesterday loretta lynch released details capuc draft rate increase order last night expected 3 cent kwh surcharge power bills roughly 40 rate increase portion surcharge given dwr cover costs order concludes utilities need revenues going forward basis therefore utilities use revenues power purchases going forward expressly forbidden using cash pay past debt ex qfs however utilities ordered resume payments qfs going forward basis net effect order allow utilities operate case bankruptcy one interesting point draft decision calls utilities join state pursuing refund amount overcharged power generators suggestion utilities take legal action generators recoup funds funds recovered generators used pay utilities past debt utilities choose course action would lengthy process davis contends lynch capuc rate increases davis thus far refused support capuc proposed rate increase stating capuc decision making board independent body continues believe resolution found within current rate structure sources indicate likely ask lynch letter resignation however indication comply senator burton supports capuc plan reportedly protect lynch allowing impeached way could removed governor