california update 10 02 01 part 2 puc approves edison bailout another surprise move puc approved edison bailout today 5 0 vote item commission agenda placeholder regarding litigation copies agreement talked edison svp regulatory affairs summary commission keep current rates place 2003 overcollection resulting keeping current rates place go paying 3 3 b edison past due accounts called undercollection edison collects 3 3 b prior 2003 rates change edison collected 3 3 b end 2003 puc create dedicated rate component bills collect remainder half remainder collected 2004 half 2005 refunds received litigation suppliers go reducing 3 3 b undercollection edison keep 10 refunds received 3 3 b paid edison pay dividends time using rates pay 3 3 b edison apply puc approval hedge gas price risk edison protected increases dwr contract costs e dwr costs go puc raise rates rather take edison rates puc fine edison period edison capital structure varies puc approved capital structure edison must drop lawsuits puc regarding 1 filed rate doctrine 2 called turn accounting method effectively kept rate freeze place edison agrees cooperate attorney general puc litigation suppliers puc decision could likely nullify need special session governor recently announced report back additional details soon get best jeff original message dasovich jeff sent tuesday october 02 2001 2 45 pm kean steven j belden tim sharp vicki blachman jeremy comnes alan tribolet michael walsh kristin delainey david leff dan frazier lamar keeney kevin gahn scott swain steve lavorato john kaufman paul steffes james calger christopher f mara susan black richter jeff kitchen louise dietrich janet mara susan robertson linda kingerski harry denne karen palmer mark pr shapiro richard curry wanda mellencamp lisa higgason kelly whalley greg mellencamp lisa subject 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