Subject: California Regulators Delay Vote on Power Revenue Requirements
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Date: Tue, 21 Aug 2001 13:18:30 -0700 (PDT)

FYI
 
California Regulators Delay Vote on Power Revenue Requirements
By Daniel Taub 

San Francisco, Aug. 21 (Bloomberg) -- California regulators will delay voting on a plan to carve out a portion of utility rates for state power purchases, a spokesman for Governor Gray Davis said. The vote is a necessary step in the state's plan to sell as much as $13.4 billion in bonds. 

The California Public Utilities Commission was scheduled to vote on the plan on Thursday. The commission will postpone the decision until its next meeting on Sept. 6 for ``largely procedural reasons,'' Davis spokesman Steve Maviglio said. 

California has spent more than $9.6 billion buying power on behalf of its three investor-owned utilities. The state entered the power-buying business in January after the two largest utilities, owned by PG&E Corp. and Edison International, became insolvent buying power for more than they were allowed to charge customers. 

The state is preparing to sell the bonds in the largest U.S. municipal offering to repay California's general fund for the power purchases. The bonds will be repaid through the rates utility customers pay. The Public Utilities Commission must approve a plan for allocating a portion of rates to the state before the bonds can be sold. 

Public Utilities Commission President Loretta Lynch wasn't immediately available for comment on the delay, said commission spokeswoman Carol Robinson. Lynch was appointed to the commission by Governor Davis.