cal update 7 30 01 direct access executive summary direct access could make rescue socal edison difficult bond issuances california may jeopardy direct access becomes popular municipalities municipal power politically attractive growing pressure across california cities consider forming municipal power companies community leaders across state enviously eyeing success sacramento smud utility los angeles municipal power utility rate hikes service disruptions far less pronounced rest state several leaders san francisco considering setting power company another two dozen cities also contemplating action municipal power companies subject regulation california public utilities commission could therefore sidestep current proposed structure rate hikes trying stop municipalities opting state power plans extremely difficult runs entrenched long standing privileges california politics california law difficult stop many cities feel best interest older larger cities charter cities rather general law cities subject california municipal code california constitution charter cities pretty much anything provide service short printing money raising army league california cities weighty organization representing every one california cities already swinging action support direct access assembly democrats started city councilors sympathy local independence resistance within assembly already building hertzberg attempts stop even large companies getting direct access city leaders wish fight governor state legislature issue municipalities opt may explain local business voters paying far electricity city next door chooses set power company cities beginning realize might potentially lose major employers politicians also beginning realize local companies stand gain lose fortune matter could affect campaign contributions state power plans risk municipalities move set power companies could undermine least three key elements state california power plans first rate hike already approved falls mostly businesses large users municipal power would unpick structure allow large regions california ignore puc leaving rate structure determined city city many municipalities may unable resist pressure local businesses protect disproportionate rate hikes others might cave irate voters second plans laid governor davis state treasurer angelides california state public power authority would also badly damaged large regions avoid anything possible long term power contracts might also face additional hurdle municipalities opt higher long term rates buying open market could mean state left excess power would sell loss third revenues back proposed power bond could imperiled municipalities opt rate structure revenue stream needed repay bond momentum direct access develops among cities municipalities across state could make much difficult launch bond first place investors may take fright potential threats viability repayments issue early stage puc general workshop matter offices san francisco friday state legislative leaders likely use every political legal means available stop municipal secession least smother issue power bond successfully away stopping municipalities choose follow path could prove difficult