Subject: California Update 1/23/01
From: [email-masked]
To: [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]
Date: Tue, 23 Jan 2001 07:15:00 -0800 (PST)

As mentioned in our report last week, AB1X is expected to pass the Senate 
later this week.  Lawmakers were busy over the weekend and yesterday marking 
up the bill.  One change includes the Department of Water Resources will use 
a "weighted average" price of 5.5 cents per kilowatt hour instead of the 5.5 
cents per kilowatt hour price cap.   

Another bill is currently being drafted by Assemblyman Keeley and Sen. Battin 
allowing QFs to sell electricity at 8 cents per kilowatt hour (down from 18 
cents) to Socal.  The bill stemmed from a series of negotiations that have 
been taking place with CA government officials.  However, a source close to 
the negotiations confirms that  PG&E was not involved in the meetings. 

Per Friday's update, negotiations continue on a bond issuance plan but sides 
remain divided on amount and if it would include the internal debt of the 
parent companies or just debt due to external creditors.