Subject: California Power 2/9
From: [email-masked]
To: [email-masked], [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]
Date: Fri, 9 Feb 2001 14:12:00 -0800 (PST)

The following information is from sensitive sources.  Please treat with discretion.

Contact Robert Johnston (x39934) or Kristin Walsh (x39510) for questions or additional info.

Bankruptcy
Early this week, there was a closed door meeting held by the Western Power Trading Forum in Arizona.  The meeting took place outside California to avoid press coverage and allow IPPs to maintain a low profile.  Association representatives believe that regardless of what happens with the PUC vs. Utilities ruling expected on Monday, some IPPs will take the utilities into involuntary bankruptcy.   Our source expects that absent a significant last minute breakthrough, the filing will happen within the next two weeks, and "probably" next week.  As stated in yesterdays report, the IPPs are very low on cash and are not able to cover the debts of the PG&E and Socal.  Only three creditors are needed with uncollected debts of more than $10,000 to file involuntary bankruptcy.

Bail Out
Davis has been meeting with the chief executives of both utilities in a last ditch effort to make a deal prior to Monday's court ruling.  The most likely scenario is for state ownership of the utilities transmissions assets.  However, coming to an agreed upon price will be very challenging.   In addition, PG&E and Edison appear to have competing agendas in pursuing a bail out plan.  Davis is expect to continue meetings through out the weekend in hopes of reaching an agreement before Monday.