urgent california update 2 16 negotiations governor davis california utilities may faltering negotiations governor gray davis california three major utilities appear taking significant turn sources report proposal governor davis splashed press morning reported rejected pg e socal ed proposal purchase debt ridden utilities transmission lines outlined sb 33 x governor expected revise sb 33 x approach utilities following new terms 1 raise states transmission pruchase bid 3 5 billion roughly 6 billion 2 finance 9 12 billion payment utilities collected debt generators 3 allow utilities issue 15 year bonds repay state resulting surcharges consumer utility bills consumer groups led harvey rosenfield could provide strong opposition davis plan possible rosenfield could launch referendum kill bill davis scheduled give press conference today 2 00 pm pac time comment negotiations