Subject: California Update 6/08/01
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], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], [email-masked], robe
Date: Fri, 8 Jun 2001 13:37:18 -0700 (PDT)

CPUC Delays QF Payment Vote 
Sources believe that the delay in the PUC vote on paying the QFs 15% of  their undercollected debt is likely a result from both a concern about bankruptcy issues raised by issuing what could be seen as a "preference payment" to the QFs (the PUC does follow these issues out of necessity, given the current environment) and a lack of clarity regarding how to implement the 15% payment.  The delay was unsurprising and characteristic of how the PUC operates.  It is also noted that there are many claims on SoCal's and PG&E's cash flows currently.  Additionally, agreeing to pay 15% of debts to the QFs raises legal issues, in that the utilities would be paying debts to some creditors, but not others.  This could increase the likelihood of an involuntary bankruptcy filing against SoCal by the non-QF creditors.