california ferc update 7 6 01 executive summary davis swaps refunds costly power contracts socal bailout bypass windfall profits tax debate refunds long term contracts ferc settlement talks scheduled end monday 9 july however early today judge wagner could issue preliminary finding settlement reached monday judge wagner expected issue ruling soon possible judge wagner made public statement regarding level refund stating 2 b reasonable making comment wagner probably trying manage expectations amount refund viewed savvy would certainly reasons make public statement since supposed comment cases review since ironically issued gag order additionally since ferc jurisdiction 20 electricity flowing california 2 3 b level could accurate ferc point view use governor 9 15 b estimates gross amount assumption ferc order refunds suppliers jurisdiction la water munis bonneville etc ruling limited percentage exert force governor davis also wants renegotiate 43 b worth long term powers contracts exchange reducing demand generators refund billions alleged price gouging speculation power generators marketers would agree refund vary lobbyists california states predicting wagner would recommend refund 3 5 b representing power companies saying would fall well 2 b wagner indicated refund around 2 b might acceptable however given davis new proposal wagner may sweeten pot recommending ferc power providers renegotiate long term contracts possibly take additional measures prevent future energy price spikes wagner lacks authority order renegotiations long term power contracts recommendation ferc could lead ferc issues order socal bailout time appears efforts sacramento work socal bailout essentially ceased one working bailout saying appears bankruptcy question legislators cautious pursuing meaningful discussions mou results ferc settlement talks amount generator give back known even cpuc considered ramifications current events ferc gone far delaying decision direct access august request ferc commissioner pat wood windfall profits tax currently two bills deal windfall profits generators two bills sb lxx appears momentum along process make exemptions entities contracting state long term contracts sb lxx soto windfall profits bill imposes electric windfall profits tax sellers energy california sales price exceeds 80 per mwh another amount determined cpuc revenue generated tax would distributed equal amounts personal income taxpayers form refundable income tax credit bill set hearing 2 july assembly revenue taxation hearing postponed next week due budget deliberations bill passed senate floor may 17 2001 23 12 vote nay votes cast republicans bill supported consumer groups opposed several generators including duke dynegy reliant mirant bill provide exemption long term contract holders however many long term contracts provisions exemption tax ab 2 x corbett tax excess gross receipts bill would create excess gross receipts received sellers electricity authorizes cpuc set base price gross receipts tax would apply establishes initial base price 60 per mwh bill includes provisions bill would apply contracts entered state energy generator bill opposition energy generators currently pending assembly floor