california update 10 02 2001 questions comments regarding report please contact g britt whitman ex 5 4014 kristin walsh ex 3 9510 executive summray cpuc settles filed rate doctrine case socal cpuc kills dwr rate agreement davis may reconsider old senate bill cpuc socal suit closed hearing today california public utilities commission voted 5 0 settle filed rate doctrine case socal edison implications could save socal otherwise immanent bankruptcy though bankruptcy remains real threat agreement cpuc stipulated following points yet formalized administrative law judge ronald lew cpuc agrees maintain level rates necessary socal pay collect 2003 surplus revenue revenue generated source must applied socal back debt socal agrees pay dividends common stock 2003 back debt recovered socal debt recovered 2003 cpuc extend appropriate rates levels necessary socal recover debt 2004 dividend payouts socal common stock subject cpuc approval extension 100 revenue socal receives generates ferc generator refunds applied socal debt socal back debt recovered surplus revenue generated cpuc rate hikes refunded ratepayers cpuc dwr rate agreement fact puc voted dwr rate agreement 4 1 margin puts governor davis treasurer angelides awkward position leaves senator burton bill sb 18 xx vehicle sets payment path revenue bonds repay general fund however late morning governor davis vowed spokesman sb 18 xx dead arrival would vetoed move puc puts pressure davis sign sb 18 xx order protect bonds long term power contacts negotiated however 18 xx violates terms number long term power contacts negotiated governor earlier year example sb 18 xx splits revenue streams payment general fund revenue bonds payment dwr power clarifies funds go repay general fund much less clear funds pay dwr power sb 18 xx leaves long term contracts signed governor open review renegotiation something governor remains publicly unwilling sb 18 xx also violates terms bridge loan state negotiated shearson lehman earlier year terms bridge loan explicitly state 18 xx passed banks accelerate loan impose penalty terms interest state terms suggested governor means forcing legislature support dwr rate agreement rather burton course effort failed legislature easily passed sb 18 xx today puc action complicates situation surface would seem force governor hand signing sb 18 xx may fact happen would character governor instead veto sb 18 xx force either legislature puc play ball order repay general fund thus another leverage point created continue monitor situation attempt determine likelihood davis signing vetoing sb 18 xx