california update 10 02 01 puc turns davis proposed rate agreement dwr likely viewed fairly shocking event california puc today voted davis proposed rate agreement dwr cpuc vote 4 1 two republicans voting davis hand picked appointees lynch wood davis proposal introduced meeting another davis appointee geoff brown made lengthy speech california would experience economic political destruction puc approve davis proposed rate agreement davis proposed rate agreement dwr cpuc would remove puc authority review contracts dwr suppliers would require puc pass utility rates dwr power contract costs questions asked implications move puc reject davis proposal vote remains unclear california dwr pay dwr power contracts political pressure negotiate break dwr power contracts likely intensify considerably remains unclear california dwr pay 12 5 b bonds treasurer unsuccessfully attempted issue past several months structure devised davis revenues flowing cpuc dwr rate agreement would used 1 pay dwr power contracts 2 service bonds treasurer trying issue repay california general fund spot short term power purchased dwr since january short clear indication california pay dwr contracts issue bonds safe say today puc vote seriously embarrassed davis left approach solving california electricity crisis shambles next broad left right coalition energy interests supported bill 18 xx passed legislature broad bi partisan support bill would create dedicated rate component every customers bill service 12 5 b bonds treasurer wants issue proponents bill everyone else argue dedicated rate component signficantly efficient way raise debt california needs plug hole budget bill silent however california would pay dwr contracts bill opponents claim power suppliers sue result four puc commissioners voted davis rate agreement today urged davis sign bill left right coalition nader types oil companies also working hard get davis sign davis said veto bill advice treasurer bond counsel given today vote however davis may alternative sign bill wants get bonds issued state budget repaid update edison bailout still appears chances small edison davis succeed getting legislature vote edison bailout returns another special session next tuesday questions let us know best jeff