Subject: California Update 4/12/01
From: [email-masked]
To: [email-masked], [email-masked]
Cc: [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked]
Date: Thu, 12 Apr 2001 05:30:00 -0700 (PDT)

? Sources report that SoCal Chairman, John Bryson, and Governor Davis were 
roommates together at Stanford in the early 60's.  This longstanding 
relationship may provide some explanation for SoCal's willingness to 
negotiate with the governor and the governor's determination to reach a 
solution with SoCal.

? Voluntary bankruptcy reportedly is "not an option" for SoCal.  However, the 
possibility remains that SoCal's creditors will take them into involuntary 
bankruptcy.  If the state's purchase of the transmission assets is delayed, 
it appears that the possibility of this occurring will increase.

? However, the agreement by the state to purchase SoCal's transmission assets 
is actually a Memorandum of Understanding. The agreement reportedly was 
rushed for "political purposes," but the details still remain to be decided.  
It is possible, the 60-day deadline stated in the memorandum may have to be 
extended.

? PG&E reportedly refused to part with its transmission assets in its 
negotiations with the governor.  PG&E makes more money on transmission than 
distribution of power, the opposite is true for SoCal.