california update 09 03 01 debate direct access heats story reflects fairly well debate underway regarding da suspension date treasurer angelides taking hard line working others get date pushed back california puc staff started calling around trying estimate many customers recently switched trying made inquiries customers including uc csu best jeff state fights 6 000 firms energy deals discount power contracts deemed unfair consumers bernadette tansey chronicle staff writer sunday september 2 2001 2001 san francisco chronicle url thousands california businesses may reap cost breaks electricity utility customers live record rate hikes state lets stand spurt last minute contracts private power suppliers 6 000 firms including big retail chains industrial plants signed discounted power contracts july august market prices dropped state officials incensed saying private direct access contracts electricity providers could shift burden millions dollars state power purchases onto households small businesses state treasurer phil angelides said companies benefited state depleted budget surplus keep lights want escape paying share billions spent ensure power supplies california think wrong immoral angelides said state officials argue summer contracts still canceled retroactively california businesses notice option shop around better deals electricity suspended state public utilities commission puc set consider retroactive ban thursday energy firms say summer deals perfectly legal puc yet taken action made series draft decisions put effective date direct access ban late yesterday drafts consistent said tracy fairchild spokeswoman alliance retail energy markets consortium generators energy suppliers one supposed take seriously energy trade group threatening sue protect summer contracts angelides fears prolonged court fight could block 12 5 billion state bond sale reimburse treasury california emergency power purchases burgeoning conflict part continuing fight energy firms business customers preserve direct access core provision state 1996 deregulation law deregulation supporters predicted energy consumers would enjoy lower prices private generators allowed compete utilities power suppliers direct access program thrown disarray last year wholesale electricity prices skyrocketed state stepped buy power make sure state outlay would paid back ratepayers legislature january directed puc suspend direct access time direct access customers fleeing back utilities benefit rate cap protected soaring market power prices puc postponed action direct access ban legislators sponsoring bills would allowed program continue certain conditions july market prices come energy providers like enron energy services aes new energy strategic energy offering direct access contracts businesses looking relief record rate hikes imposed utility customers june said phoenix energy consultant gina coleman coleman said helped five retail chains significant number stores california negotiate contracts strategic energy summer business business get better price something said coleman declined name clients said lower costs help stores keep business california hold prices daniel douglass attorney alliance retail energy markets said attempt state cancel contracts retroactively would violate constitutional law said energy firms purchased power serve customers contracts would suffer losses canceled angelides said firms ran state protection market contracts became expensive want take advantage lower power prices attributes stabilizing effect state long term power contracts take advantage state stabilizing rates say thank much stick everyone else bill angelides said state officials tallied total number customers signed july august estimated revenue loss would covered remaining utility ratepayers figures compiled puc show commercial industrial firms signed 6 000 new direct access contracts july alone rough calculation suggests result firms might contribute much 64 million less annually repayment state costs loss might significant enough risk court fight would delay bond sale state officials said bu angelides said power firms helped create energy crisis charging exorbitant rates threatening bond issue desperately needed restore funds needed education health care children services talking said holding us hostage get want e mail bernadette tansey btansey sfchronicle com 2001 san francisco chronicle page 21