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Thanks, Jean Los Angeles Times, April 9, 2001, Monday,, Home Edition, Page 3, 1081 words ????, THE CALIFORNIA ENERGY CRISIS; ??CALIFORNIA AND THE WEST; ??GENERATORS ????SCRAMBLED TO END PACTS WITH UTILITIES; ??ENERGY: EVEN BEFORE PG&E FILED FOR ????BANKRUPTCY, ALTERNATIVE PLANT OWNERS WHO HADN'T BEEN PAID IN MONTHS PURSUED ????COURT ACTIONS., JULIE TAMAKI, TIMES STAFF WRITER, SACRAMENTO ???(Quotes Smutny on behalf of IEP) The New York Times, April 7, 2001, Saturday, Late Edition - Final, Section ????A; Page 1; Column 4; National Desk, 1174 words, California's Largest Utility ????Files for Bankruptcy, By LAURA M. HOLSON, LOS ANGELES, April 6 ???(Quotes Smutny on behalf of IEP) Sacramento Bee, April 7, 2001, Saturday, Pg. A23;, 507 words, Natural gas ????project OK'd, David Whitney Bee Washington Bureau and Carrie Peyton Bee ????Staff Writer, WASHINGTON (Quotes Smutny on behalf of IEP) San Jose Mercury News, April 7, 2001, Saturday, STATE AND REGIONAL NEWS, ????K3364, 1209 words, Filing for Chapter 11 may help PG&E's debt but it won't ????solve power crisis, By Brandon Bailey ?(Quotes Smutny on behalf of IEP) ADVISORY/More Power to You Organizers to Conduct First Town Hall-Focus Group Meeting on Energy in San ?? ???Diego Business Wire 04/09/01, 11:00a (Copyright , 2001, Business Wire) New Watchdog Group Urges ???Californians to Voice Concerns, Suggest Solutions to Energy Crisis PR Newswire, April 9, 2001, Monday, 9:01 AM Eastern Time, FINANCIAL NEWS, ????1036 words, PG&E Bankruptcy Will Not Affect Calpine's Commitment to ????California Power Market, SAN JOSE, Calif., April 9 AP Online, April 9, 2001; Monday, 5:13 AM, Eastern Time, Financial pages, ????970 words, Governor Davis, Utility Toss Blame, GARY GENTILE, LOS ANGELES AP Online, April 8, 2001; Sunday, 7:17 PM, Eastern Time, Financial pages, ????408 words, PG&E Investors Worry About Nest Eggs, SAN FRANCISCO The Bulletin's Frontrunner, April 9, 2001, 1419 words, California Governor, ????PG&E Trade Shots In Wake Of Utility's Bankruptcy Filing. Financial Times (London), April 9, 2001, Monday, COMPANIES & FINANCE ????INTERNATIONAL;, Pg. 28, 340 words, COMPANIES & FINANCE INTERNATIONAL: ????Southern Edison says no to filing, By PAUL ABRAHAMS, SAN FRANCISCO Financial Times (London), April 9, 2001, Monday, GLOBAL INVESTING;, Pg. 28, ????729 words, GLOBAL INVESTING: Hard sell expected for California bonds: While ????details are sketchy, the state is hoping to help solve its power troubles ????through the Dollars 10bn-Dollars 14bn issue, Investment Dealers Digest, April 09, 2001, 868 words, Stranded Cost ????Securitizations Take Off, But Don't Expect an Avalanche of Deals: Issuance ????hits $6 billion as California and courts cast a shadow, Mairin Burns ????(mairin.burns@tfn.com) Los Angeles Times, April 9, 2001, Monday,, Home Edition, Page 7, 981 words, ????COMMENTARY; ??USE EMINENT DOMAIN AS A POWER TOOL, MICHAEL J. AGUIRRE, ????Michael J. Aguirre has filed a private attorney general's lawsuit, against ????the major power producers Los Angeles Times, April 9, 2001, Monday,, Home Edition, Page 6, 535 words, ????DAVIS ON POWER CRISIS Los Angeles Times, April 9, 2001, Monday,, Home Edition, Page 6, 681 words, ????SHOCK'S SILVER LINING Los Angeles Times, April 9, 2001, Monday,, Home Edition, Page 3, 769 words, ????CAPITOL JOURNAL; ?CALIFORNIA AND THE WEST; ??Plenty of Failure to Go Around, ????GEORGE SKELTON, SACRAMENTO Los Angeles Times, April 9, 2001, Monday,, Home Edition, Page 3, 1081 words ????, THE CALIFORNIA ENERGY CRISIS; ??CALIFORNIA AND THE WEST; ??GENERATORS ????SCRAMBLED TO END PACTS WITH UTILITIES; ??ENERGY: EVEN BEFORE PG&E FILED FOR ????BANKRUPTCY, ALTERNATIVE PLANT OWNERS WHO HADN'T BEEN PAID IN MONTHS PURSUED ????COURT ACTIONS., JULIE TAMAKI, TIMES STAFF WRITER, SACRAMENTO Los Angeles Times, April 9, 2001, Monday,, Home Edition, Page 1, 1568 words ????, WITH POWER PRICE SURGES, CALIFORNIA'S A FOLLOWER; ??ENERGY: MUCH OF THE ????NATION IS ALREADY BEING ZAPPED BY DOUBLE-DIGIT INCREASES. SEVERAL STATES ????HAVE HIGHER RATES. DEREGULATION, ANTI-POLLUTION LAWS AND DISTANCE FROM FUEL ????SOURCES ARE TO BLAME., ERIC SLATER, TIMES STAFF WRITER, CHICAGO Los Angeles Times, April 9, 2001, Monday,, Home Edition, Page 1, 1386 words ????, JUDGE IN PG&E BANKRUPTCY CASE SEEN AS A PROBLEM SOLVER; ??COURTS: DENNIS ????MONTALI WILL FACE UNPRECEDENTED LEGAL COMPLEXITIES., MAURA DOLAN, TIMES ????LEGAL AFFAIRS WRITER, SAN FRANCISCO Los Angeles Times, April 9, 2001, Monday,, Valley Edition, Page 3, 671 ????words, THINK TANK HIRES EXPERTS WITH POWER TO SOLVE PROBLEMS DURING ENERGY ????CRISIS, MARGARET TALEV, TIMES STAFF WRITER, CAMARILLO Los Angeles Times, April 9, 2001, Monday,, Home Edition, Page 1, 1242 words ????, JAMES FLANIGAN; ?OTHERS LEARNING FROM CALIFORNIA'S ENERGY MISTAKES, JAMES ????FLANIGAN The San Francisco Chronicle, APRIL 9, 2001, MONDAY,, FINAL EDITION, NEWS;, ????Pg. A1, 1090 words, Governor, Utility In War Of Words; ???Davis furious as ????PG&E defends bankruptcy filing, David Lazarus The San Francisco Chronicle, APRIL 9, 2001, MONDAY,, FINAL EDITION, NEWS;, ????Pg. A1, 1032 words, Power Grab -- Some Democrats Favor Seizing Plants, ????Bernadette Tansey The San Francisco Chronicle, APRIL 9, 2001, MONDAY,, FINAL EDITION, ????EDITORIAL;, Pg. A19;, 627 words, Lights Dim On Gray Davis, Marc Sandalow USA TODAY, April 9, 2001, Monday,, FIRST EDITION, MONEY;, Pg. 4B, 492 words ????, Utility's bankruptcy filing adds to California's confusion, Martin ????Kasindorf, LOS ANGELES Chicago Tribune, April 9, 2001 Monday, NORTH SPORTS FINAL EDITION, Metro; ????Pg. 1; ZONE: N, 1139 words, SURGE IS SEEN IN GAS-FIRED POWER PLANTS, By Jeff ????Long and Melita Marie Garza, Tribune staff reporters. The Associated Press State & Local Wire, April 9, 2001, Monday, BC cycle, ????4:20 AM Eastern Time, Business News, 820 words, California's biggest utility ????files for bankruptcy, By MICHAEL LIEDTKE, AP Business Writer, SAN FRANCISCO Los Angeles Times, April 8, 2001, Sunday,, Home Edition, Page 21, 594 words ????, THE CALIFORNIA ENERGY CRISIS; ??DEMOCRATS SLAM BUSH 'INACTION' IN ENERGY ????CRISIS; ??ADMINISTRATION OFFICIALS DISPUTE THE CHARGE AND ACCUSE CONGRESSMEN ????OF EXPLOITING THE SITUATION FOR PARTISAN GAIN., ALISSA J. RUBIN, TIMES STAFF ????WRITER, WASHINGTON Los Angeles Times, April 8, 2001, Sunday,, Home Edition, Page 1, 1146 words ????, THE CALIFORNIA ENERGY CRISIS; ??PG&E GAVE BONUSES PRIOR TO BANKRUPTCY; ????POWER CRISIS: BEFORE ITS FILING, THE UTILITY ALSO HAD $2.5 BILLION ON HAND ????AND HAD RESTARTED SERVICES SUSPENDED EARLIER BECAUSE OF SHAKY FINANCES., TIM ????REITERMAN, TIMES STAFF WRITER, SAN FRANCISCO Los Angeles Times, April 8, 2001, Sunday,, Home Edition, Page 1, 1304 words ????, JAMES FLANIGAN; ?STATE LOOKS TO PUBLIC POWER AS SOLUTION TO ENERGY CRISIS, ????JAMES FLANIGAN Los Angeles Times, April 8, 2001, Sunday,, Orange County Edition, Page 11, ????467 words, ORANGE COUNTY PERSPECTIVE; ??DAVIS HAS STATE HEADED FOR POWER ????WIPEOUT; ???THE GOVERNOR DUCKED HIS RESPONSIBILITY TO STEER CALIFORNIA AWAY ????FROM THE ELECTRICITY CRISIS, AN EX-SURFING CHAMP SAYS., JOYCE HOFFMAN, Joyce ????Hoffman, a former women's world surfing champion, lives in, Laguna Beach Sacramento Bee, April 8, 2001, Sunday, Pg. A1;, 1497 words, Ratepayers lose ????clout PG&E filing cuts consumers' ability to exert pressure on a rescue ????plan., Carrie Peyton and Stuart Leavenworth Bee Staff Writers Sacramento Bee, April 8, 2001, Sunday, Pg. A16;, 800 words, Chapter 11 ????filing just the first of many steps, Stuart Leavenworth and Carrie Peyton ????Bee Staff Writers Sacramento Bee, April 8, 2001, Sunday, Pg. L4;, 563 words, Lessons from ????history Electricity still needs a public role San Jose Mercury News, April 8, 2001, Sunday, DOMESTIC NEWS, K3554, 1393 ????words, In wake of PG&E bankruptcy, California governor, state officials ????scramble for solution, By Steve Johnson The San Francisco Chronicle, APRIL 8, 2001, SUNDAY,, FINAL EDITION, NEWS;, ????Pg. A14, 683 words, Deregulation Debacle, Chuck Squatriglia The San Francisco Chronicle, APRIL 8, 2001, SUNDAY,, FINAL EDITION, NEWS;, ????Pg. A1, 1709 words, POWER PLAY; ???PG&E timed bankruptcy to blame Davis, ????insiders say, David Lazarus The San Francisco Chronicle, APRIL 8, 2001, SUNDAY,, FINAL EDITION, NEWS;, ????Pg. A1, 1471 words, Davis' Pledges Come Back To Haunt Him, Carla Marinucci, ????Patrick Hoge The San Francisco Chronicle, APRIL 8, 2001, SUNDAY,, FINAL EDITION, ????BUSINESS;, Pg. B7, 3592 words, Nuclear Warning; ???Watchdogs eye Duke's ????salvage operation, Scott Winokur, Christian Berthelsen Los Angeles Times ?????????????????????April 9, 2001, Monday, Home Edition SECTION: Part A; Part 1; Page 3; Metro Desk LENGTH: 1081 words HEADLINE: THE CALIFORNIA ENERGY CRISIS; CALIFORNIA AND THE WEST; GENERATORS SCRAMBLED TO END PACTS WITH UTILITIES; ENERGY: EVEN BEFORE PG&E FILED FOR BANKRUPTCY, ALTERNATIVE PLANT OWNERS WHO HADN'T BEEN PAID IN MONTHS PURSUED COURT ACTIONS. BYLINE: JULIE TAMAKI, TIMES STAFF WRITER DATELINE: SACRAMENTO BODY: ??In filing for federal bankruptcy protection last week, Pacific Gas & Electric Co. determined what other power producers had already concluded: The state had failed to solve their payment problems and the time had come for the courts to step in. ??In the days leading up to PG&E's Bankruptcy Court petition, a growing number of alternative energy producers had also been filing lawsuits, seeking to be freed from their contracts with PG&E and Southern California Edison. The litigation was triggered in part by a controversial new rate plan imposed last month by the state Public Utilities Commission in addition to millions of dollars of debt owed to the producers by the utilities. ??On Tuesday, Dynamis Inc. filed suit in Fresno, saying PG&E owes it $ 3 million. ??Carson-based Watson Cogeneration Co., one of the state's largest alternative energy producers, also had filed suit to have its contract with Edison suspended. So did Delta Power, which owns five small gas-fired plants in California. Both producers are owed tens of millions by Edison. ??At least a dozen such suits have been filed in civil courts, and lawyers warn that more could be on the way. ??"Tough solutions were not being brought to the equation, which left PG&E and others feeling they were better off in the court system," said Jerry Bloom, an attorney for the California Cogeneration Council. ??The court actions come on the heels of an order by the PUC last month that Edison and PG&E begin fully paying hundreds of small alternative energy producers. But some producers say that a new rate plan issued by the PUC would force them to operate at a loss and that nothing has been done to address the about $ 1.5 billion owed to members of the group by PG&E and Edison. ??Lawyers say other producers have served Edison with notices that they plan to cancel their contracts. ??Gas-fired generators account for about two-thirds of the electricity produced by the alternative energy group. ??The California Independent System Operator, keeper of the state's power grid, reports that there continues to be a roughly 3,000-megawatt reduction in output from the alternative energy producers. The daily sum is enough power to supply 2 million to 3 million typical homes. ??"It clearly shows the problem hasn't been fixed," said Jan Smutny-Jones, executive director of the Independent Energy Producers. ??California is home to nearly 700 producers of alternative and renewable energy, which as a group provide more than a quarter of the electricity used by consumers. ??Some of the producers have gone offline or reduced supplies for maintenance reasons, but others have cut back because they have not been paid by Edison since November or have received only partial payments from PG&E. ??The drop in output has at times forced the state to purchase replacement supplies on the pricey spot market for electricity and contributed to rolling blackouts last month. The latter event prompted Gov. Gray Davis to propose a plan to get the generators up and running again. ??Consequently, the PUC established a new rate plan for the producers and ordered the utilities to begin fully paying them beginning this month. The payment goal would be accomplished in part by slashing the rates that PG&E and Edison must pay the producers. ??But the PUC action appears to have compelled a growing number of gas-fired generators to file lawsuits in an effort to be released from their contracts with the utilities and be paid the millions they are owed. ??Bloom contends that the new rate plan will force some producers to operate at a loss because it does not adequately compensate for their gas expenses. He said he expects generators to challenge the plan in court or before the Federal Energy Regulatory Commission. ??Smutny-Jones contends that the plan wrongly assumes that all natural gas used by his members can be piped in from the Oregon border, where the price of natural gas is cheaper. The producers, he added, are seeking assurances that they will be paid realistic rates by the utilities for future deliveries. ??Utilities are scheduled to pay the first round of reduced rates, as ordered by the PUC, early next week. Both utilities have indicated that they plan to make the first round of payments. ??Edison officials said Friday they have been served with 10 producer lawsuits. They say they fear that if the generators are let out of their contracts, they could sell their supplies out of state, which could in turn cause rates to rise for California consumers because it would reduce supply. ??PG&E spokesman John Nelson said in an interview last week before the bankruptcy filing that PG&E has been served with two such lawsuits. He said his company is also concerned about the PUC rate plan and whether it truly lowered the rates PG&E must pay the alternative producers and whether there would be enough money in the rates paid by customers to turn around and pay the producers. ??"We're concerned that the commission decision does not solve the problem," Nelson said. ??A Davis spokesman said last week that the administration is still working on the issue of money owed to the producers and that the administration is continuing to work with the PUC to get more generators back online. ??Observers believe the number of producer lawsuits will grow because most cases to date have been aimed at Edison. The utility has not paid its producers since November and has fought to have its rates slashed. ??By comparison, PG&E has made efforts to partially pay its producers in recent months and to keep them informed of their financial situation. ??A Bankruptcy Court is expected to decide whether to affirm the contracts of producers who sell to PG&E or to free them to sell their power elsewhere. ??An Imperial County judge has already freed CalEnergy, a small geothermal producer, from its contract with Edison because of Edison's failure to pay the company. The court has delayed ruling on CalEnergy's request for $ 99 million in back payments until April 16--the day the utility is expected to begin paying its alternative generators. ??Since it quit transmitting 270 megawatts to Edison last month, CalEnergy has been selling its electricity to El Paso Energy, a marketing company that resells power on the spot market. If other generators are able to repeat the pattern, it could further reduce state energy supplies, particularly this summer, when every megawatt will be needed to avoid blackouts. LOAD-DATE: April 9, 2001 ???????????????????????????????2 of 4 DOCUMENTS ??????????????????Copyright 2001 The New York Times Company ??????????????????????????????The New York Times ????????????????April 7, 2001, Saturday, Late Edition - Final SECTION: Section A; Page 1; Column 4; National Desk LENGTH: 1174 words HEADLINE: California's Largest Utility Files for Bankruptcy BYLINE: ?By LAURA M. HOLSON DATELINE: LOS ANGELES, April 6 BODY: ??The Pacific Gas and Electric Company, California's largest investor-owned utility, filed for bankruptcy protection today, declaring that politicians and regulators had not moved quickly enough to resolve an energy crisis that has caused periodic rolling blackouts and is costing the state billions of dollars. ??The filing, which seeks reorganization under Chapter 11 of the bankruptcy code, shifts decision-making about crucial aspects of the California energy debacle from officials in Sacramento, the state capital, to a federal bankruptcy court in San Francisco, where Pacific Gas and Electric has its headquarters. ???The utility hopes to have more success in court in trying to win relief from $9 billion in wholesale energy debt it says it has incurred since prices began soaring last May. Legislators and regulators have been loath to bail out Pacific Gas and Electric or the No. 2 utility, Southern California Edison, whose billions in debt to wholesalers and marketers stem from flawed state deregulation that did not allow the utilities to pass on rising costs to consumers. ??The filing came as a surprise to many, particularly Gov. Gray Davis, who in a televised speech only Thursday night reversed his stand against electricity rate increases, acknowledging that consumers would have to pay more. ??For months, the two utilities had complained that they were running out of cash and had demanded that rates be increased to cover their costs, but they had not made good on any threat to file for bankruptcy. The reason, in part, was that the governor's office, in trying to forestall a greater sense of uncertainty surrounding the energy crisis, was negotiating to keep the utilities solvent by buying their transmission lines. ??On Tuesday, executives from Pacific Gas and Electric met for four hours with the governor's negotiators. On Thursday, Wall Street analysts said they had been told by the governor's representatives that there were hopes some resolution could be reached. That night the governor proposed a plan, with rate increases a centerpiece, that he said would help pay off the utilities' debts. ??In the end, none of this was enough for Pacific Gas and Electric. In a conference call with reporters today, Robert D. Glynn Jr., chairman of the utility and of its parent company, the PG&E Corporation, said the governor was not moving fast enough, having delayed a face-to-face meeting for weeks. ??"We've heard a lot of the words that have been involved, but we have not seen a lot of actions," Mr. Glynn said. "The regulatory and political processes have failed us, and now we are turning to the court." ??Mr. Glynn said the bankruptcy filing would not affect customer service. And, he said, it involves only Pacific Gas and Electric, which operates in Northern and Central California, and not the parent company itself or its other units. ??Southern California Edison, meanwhile, said today that it would continue to try to reach an agreement with the governor. ??Responding to the announcement by Pacific Gas and Electric, Governor Davis said the company had "dishonored itself." ??"This action was unnecessary," he said. "They've caused undue alarm. PG&E was not pushed into bankruptcy, but plunged themselves into bankruptcy for their own strategic advantage -- not the best interests of the people of California." ??A few months ago, in a move widely criticized by consumer groups and legislators, the PG&E Corporation took steps to ensure that the assets of its other subsidiaries would not be seized in case of a Pacific Gas bankruptcy. Just this week the State Public Utilities Commission said it would investigate whether Pacific Gas and Electric, Southern California Edison and the state's No. 3 investor-owned utility, San Diego Gas and Electric, had engaged in any financial misconduct by funneling billions to their parent companies to pay dividends and repurchase stock. ??Trading in PG&E stock was halted briefly today. When it resumed, the price quickly fell by nearly 40 percent. By day's end, the stock of Edison International, parent of Southern California Edison, had also dropped sharply, by 35 percent. ??That Pacific Gas and Electric, which helped design the deregulation that brought on the California power crisis, would now take so drastic a step both concerned and puzzled analysts. "It doesn't make sense, because the governor endorsed the rate increase the utilities had been asking for," said Susan Abbott, head of the power group at Moody's Investors Service in New York. ??But Ms. Abbott also noted that the rate increases -- varying from 10 percent to 37 percent, on top of a 9 percent surcharge adopted by the state this winter -- would not entirely eliminate the debt accumulated by the utilities as a result of deregulation. "There were a lot of people who said, 'Great, the utilities' problems are over,' " she said. "But they are not." ??The bankruptcy petition filed by Pacific Gas and Electric reported assets of $24 billion and debts of $18 billion. In his talk with reporters, Mr. Glynn said the company was still incurring $300 million in monthly wholesale energy costs that it had no way of paying. But his biggest concern, aside from the stalled negotiations with the governor, is the Public Utilities Commission. ??For instance, Mr. Glynn complained about the commission's recent change to the utilities' accounting practices, a step he said would make it even more difficult for Pacific Gas to recoup any losses. The commission has also said it is the state, which has had to step in as a middleman buying power for the utilities because many suppliers have cut off their credit, that will be the first to be paid money flowing from the rise in consumer rates. ??In any event, moving into the bankruptcy court the debate over debt that has already been incurred should resolve a question that the parties to the issue have been unable to settle: who indeed will get paid first? Analysts say the bankruptcy judge, Dennis Montali, will have to consider several issues, in particular that electricity is a vital necessity. ??That being the case, it is likely that the power generators, which have been called price gougers and pirates but have supplied the state with enough energy to keep the lights on, will have priority among the creditors. That is good news for many of the state's smaller generators, many of which were forced to shut their doors when Pacific Gas and Electric made only partial payments to them. After that, analysts say, bondholders will most likely be next in line, although all this will await a judgment by the court, which among other things must also decide what priority the state enjoys. ??"It's going to help focus in a very specific, objective order the manner in which their financial situation gets sorted out," said Jan Smutny-Jones, executive director of the Independent Energy Producers Association, which represents power generators in the state. "The thing to do when you get in a hole is stop digging. They did that today." ??http://www.nytimes.com GRAPHIC: Photo: A Pacific Gas and Electric crew at work yesterday on power lines in San Francisco. The company has filed for federal bankruptcy protection. (Associated Press)(pg. A10) LOAD-DATE: April 7, 2001 ???????????????????????????????3 of 4 DOCUMENTS ??????????????????Copyright 2001 McClatchy Newspapers, Inc. ????????????????????????????????Sacramento Bee ?????????????????April 7, 2001, Saturday METRO FINAL EDITION SECTION: MAIN NEWS; Pg. A23; POWER CRUNCH LENGTH: 507 words HEADLINE: Natural gas project OK'd BYLINE: David Whitney Bee Washington Bureau and Carrie Peyton Bee Staff Writer DATELINE: WASHINGTON BODY: ??The Federal Energy Regulatory Commission gave quick approval Friday to a project that will increase natural gas deliveries for electric power generation in California this summer. ??And in a move that intensified the conflict over who should pay for California's emergency power needs, FERC also ruled that the state grid operator must find "creditworthy" buyers for all power it procures. The decision could either drive up electricity prices by removing a state negotiating tool or increase the risk of rolling blackouts, or both. ??The action to approve a project from the Williams Cos. comes just three weeks after the firm applied for a certificate to add compression stations and other equipment along its Kern River Transmission Co. line from Wyoming to Bakersfield. ??With the new stations and equipment, said Williams spokeswoman Beverly Chipman, the company will be able to deliver an additional 135 million cubic feet of natural gas into California - enough to generate power for 750,000 homes, she said. ??Chipman said that ordinarily it takes six months to a year to move an application through FERC. This one sailed through in record time at the urgings of the governors of California, Nevada, Utah and Wyoming, she said. ??The $81 million project will include new compression stations in Utah and California and the upgrading of compressors units in Wyoming, Utah and Nevada. ??"We are prepared to do whatever we can to rush supplies to West Coast markets," said FERC chairman Curl Hebert Jr. ??FERC's decision on power sales affects the state Independent System Operator, which operates the electrical grid. For weeks, the state Department of Water Resources has been opting to buy less power than California needs when it feels prices are too high. The rest - sometimes 1,000 to 2,000 megawatts per hour - has been bought by the ISO, which operates from Folsom. ??PG&E estimated Friday that the ISO purchases have added about $300 million a month to its debts. Power sellers, afraid the ISO would not be paid by PG&E or Southern California Edison, asked federal regulators to force the ISO to find a creditworthy buyer or stop compelling sales. ??FERC had ruled on the issue in February, and on Friday it reinforced that ruling, saying the ISO misinterpreted its earlier decision and must comply. ??The ruling could increase pressure to find "creative" solutions to who will pay for California's power, said Jan Smutny-Jones, head of the Independent Energy Producers Association. "Obviously the ISO doesn't have the money and the utilities don't have the money either. The question is, where do we go from here," he said. "My hope is that it does not make blackouts more likely." ??The state hasn't decided whether it will appeal the decision, said Roger Salazar, a spokesman for Gov. Gray Davis. But he said the federal ruling appears to make it likely that California will have to buy more electricity on the utilities' behalf. ??The Bee's David Whitney can be reached at (202) 383-0004 or dwhitney@mcclatchydc.com. LOAD-DATE: April 8, 2001 ???????????????????????????????4 of 4 DOCUMENTS ??????????????Copyright 2001 Knight Ridder/Tribune News Service ???????????????????????Knight Ridder/Tribune News Service ????????????????????????????San Jose Mercury News ???????????????????????????April 7, 2001, Saturday SECTION: STATE AND REGIONAL NEWS KR-ACC-NO: ?K3364 LENGTH: 1209 words HEADLINE: Filing for Chapter 11 may help PG&E's debt but it won't solve power crisis BYLINE: By Brandon Bailey BODY: ??SAN JOSE, Calif. _ Filing for bankruptcy protection may help PG&E with its debts, but it won't solve the state's power crunch. ??Power suppliers promised Friday that they will continue to deliver electricity for California consumers, which means the lights will stay on for now. But experts and industry spokesmen say that supply won't be enough to prevent the shortages and rolling blackouts that state officials have predicted for this spring and summer. ??"The summer crisis will still happen," said Bill Highlander of Calpine Corp., a San Jose-based energy producer. "It's a matter of supply and demand." ??In addition, many experts agreed Friday that Pacific Gas & Electric Co.'s bankruptcy filing could have little immediate impact on other problems that are plaguing the state's power system: soaring wholesale prices, congested transmission lines and aging generating plants. ??But some said the action eventually could lead to more rate increases for consumers, beyond those proposed by Gov. Gray Davis and the state Public Utilities Commission in recent weeks. ??The reason lies in the fact that a bankrupty judge doesn't have a magic wand. ??The court can make sure suppliers fulfill their existing contracts by guaranteeing that they will be paid for future deliveries, placing them ahead of creditors who are only seeking payment for past debts. A judge may be able to order PG&E's customers to pay higher rates _ or at least the court can put pressure on state regulators to authorize rate hikes. ??But a judge can't order PG&E's suppliers to build new power plants or speed up expansion of existing generators. Analysts also said they don't believe a judge has the authority to limit wholesale prices on the spot market, where much of the state's energy is still bought and sold. ??PG&E has said it's been unable to pay its suppliers because it has a multibillion-dollar deficit from buying power at wholesale prices that the state won't allow it to pass on to consumers. Instead, the state of California has been buying power for PG&E and Southern California Edison while attempting to negotiate a bailout for both utilities. ??Some industry spokesmen expressed hope that the bankruptcy filing would give PG&E suppliers more assurance about getting paid in the future _ and prevent the state's energy markets from careening further out of control. ??Still, other analysts warned that if the filing delays payment to smaller power generators, who provide up to a third of the state's supply, it could drive more of them out of the market. ??"I just don't see any upside to this at all," said Peter Navarro, a professor of economics and public policy at University of California-Irvine, who has closely followed the effects of deregulation on the state's energy industry. ??Spokesmen for some of the state's largest generators, including Calpine, Duke Energy and Dynegy Inc., said PG&E's action would have no effect on their operations. ??"It really shouldn't have any effect on our putting output into the grid," said Tom Williams of Duke Energy, which owns three power plants in Northern California. ??In large part, that is because these companies have not been selling directly to PG&E for several months. Since the utility began developing financial problems last fall, several major suppliers said they have been negotiating contracts with other buyers. Dynegy, for example, has committed its output in contracts with the state of California. Duke has agreements with other wholesale energy buyers and traders. ??If the bankruptcy filing allows PG&E to reorganize its debts and eventually re-enter the energy market on a more stable footing, Steve Stengel of Dynegy said, "today's action could actually be a catalyst to moving forward toward a long-term solution." ??But a number of small generators have already shut down their plants because PG&E and Southern California Edison, the state's other major utility, haven't paid for past deliveries. That has kept about 3,000 megawatts off-line and contributed to shortages that caused the state's Independent System Operator to declare power alerts on several days last month. ??As the weather gets warmer, the Independent System Operator has warned that shortages will get worse. And the prospects for bringing those small generators back online are uncertain. ??Some of those small producers have said they may have to file for bankruptcy protection themselves. One spokesman said companies that are currently operating their plants will continue in operation for at least 30 days, until they see what the bankruptcy court will do. ??But if the court doesn't authorize a plan for paying those companies what they are owed, both for past deliveries and future energy production, Jan Smutny-Jones of the Independent Energy Producers Association warned, some small firms may ask the court to excuse them from their contracts with PG&E. ??That could allow the small producers to sell their electricity on the spot market, where prices are generally higher than what the generators were promised in their utility contracts, Smutny-Jones added. That could leave the state buying even more power at higher prices. ??While the state has been buying most of the power delivered to utility customers, the Independent System Operator has continued to make some spot-market purchases directly on behalf of the utilities. The ISO makes those last-minute purchases to meet the state's electricity needs when the state has been unable to purchase enough power in advance. ??In a separate development Friday, federal authorities ruled that generators cannot be forced to sell power to the ISO if there is no guarantee of payment. And some analysts suggested that PG&E's bankruptcy filing may jeopardize the ISO's ability to make last-minute purchases on the utility's behalf. ??A spokesman for Gov. Gray Davis, however, told the Associated Press that the state may simply step in to guarantee payment on those transactions. And an ISO spokeswoman said her agency is confident it will be able to continue those transactions. ??But few experts held out hope Friday that a bankruptcy court would order suppliers to reduce their prices, which have soared in recent months. ??While the court might force suppliers to accept a reduction in payment for past deliveries, "I don't think it's going to be able to affect prices going into the future," said consumer group attorney Mike Florio, who sits on the ISO governing board. ??As for the prices that individual consumers pay, many suppliers have argued, along with PG&E, that the utility needs to be able to raise its retail rates even more than already proposed. ??While consumer advocates contend that any rate increases are unjustified, industry analysts said they are hopeful a judge will be convinced otherwise. ??"I think the long-term result will be that rates will increase more than what has been talked about already," said Brian Youngberg, an analyst for the Wall Street firm Edward Jones Inc. ??(staff writer Deborah Lohse contributed to this report.) ??KRT CALIFORNIA is a premium service of Knight Ridder/Tribune ??© 2001, San Jose Mercury News (San Jose, Calif.). ??Visit Mercury Center, the World Wide Web site of the Mercury News, at http://www.sjmercury.com/ JOURNAL-CODE: SJ LOAD-DATE: April 7, 2001 ADVISORY/More Power to You Organizers to Conduct First Town Hall-Focus Group Meeting on Energy in San Diego Business Wire 04/09/01, 11:00a (Copyright , 2001, Business Wire) --(BUSINESS WIRE)-- ??????New Watchdog Group Urges Californians to Voice Concerns, ?????????????????Suggest Solutions to Energy Crisis WHO: ???Peter Foy, California small business owner and chairman of ???????the grassroots watchdog organization More Power to You. ???????Dr. Frank Luntz, one of America's leading public opinion ???????experts for news media covering politics and public policy. ???????San Diego residents concerned about the impact of the current ???????energy crisis. WHAT: ??The event is the first of a series of Town Hall-Focus Group ???????meetings on the energy crisis that More Power to You will ???????conduct statewide. Their purpose is to provide a platform for ???????the people who pay the electric and gas bills, and pay the ???????taxes, to have a voice in the energy crisis discussion, which ???????has thus far been dominated by politicians and bureaucrats -- ???????the very people who helped create the mess we are now trying ???????to clean up. The meeting will be moderated by renowned ???????pollster Dr. Frank Luntz and hosted by More Power to You ???????chairman Peter Foy. ???????San Diegans will be the first that More Power to You turns to ???????for ideas to ensure California has energy for the future at a ???????fair price. WHEN: ??Wednesday, April 11 at 7 p.m. WHERE: ?Mission Valley Marriott ???????8757 Rio San Diego Drive ???????Mission Valley BACKGROUND: More Power to You is a new, grassroots watchdog ???????????organization dedicated to letting the people of California ???????????speak out about the state's energy crisis. More Power to ???????????You chairman Peter C. Foy is a small business owner who ???????????provides insurance, personnel and human resource ???????????management services to other small- to mid-sized ???????????businesses; his company employs 34 people and is located ???????????in Woodland Hills. Pollster and event moderator Dr. Frank ???????????Luntz has conducted political and news program focus ???????????groups for all three major networks and two of the three ???????????cable news channels, PBS and the BBC, as well as national ???????????print media such as The Wall Street Journal and U.S. News ???????????& World Report. ???CONTACT: The Johnson Group ????????????Patricia Johnson/Linda Carlson, 818/703-8329 ????????????????????????????????????????????818/399-6811 (cell) PR Newswire ??????????????????April 9, 2001, Monday 9:01 AM Eastern Time SECTION: FINANCIAL NEWS DISTRIBUTION: TO BUSINESS AND ENERGY EDITORS LENGTH: 1036 words HEADLINE: PG&E Bankruptcy Will Not Affect Calpine's Commitment to California Power Market DATELINE: SAN JOSE, Calif., April 9 BODY: ??In response to Pacific Gas and Electric Company's (PG&E) April 6th Chapter 11 filing, Calpine Corporation (NYSE: CPN), the San Jose, Calif.-based independent power company, stated it is confident that PG&E, through a successful reorganization, will be able to pay Calpine's Qualifying Facility (QF) subsidiaries for all past due power sales, in addition to electricity deliveries made on a going-forward basis. ???Calpine's QF subsidiaries sell power to PG&E under the terms of long-term QF contracts at eleven facilities, representing nearly 600 megawatts of electricity for Northern California power customers. ?As of March 31, 2001, Calpine has recorded approximately $267 million in accounts receivable with PG&E, plus a $68 million note receivable not yet due and payable. ?The company's remaining California operations, totaling approximately 700 megawatts of capacity, provide electricity to municipalities and other creditworthy third parties. ???Calpine's QF facilities are part of a 9,000-megawatt QF supply that provide California customers with a long-term source of electricity at prices significantly below current wholesale prices. ?This critical power supply represents approximately 33 percent of the state's power demand. ?Without these contracts in place for this summer, California faces the prospect of more blackouts and hundreds of millions of dollars in increased costs. ???For these QF contracts to continue, PG&E must assume the contracts in the bankruptcy proceedings. ?In order to assume these contracts, PG&E will be required to cure all outstanding defaults, including paying all past due amounts. ?If PG&E fails to assume the contracts, Calpine's QF subsidiaries will be able to sell power on the open market and seek damages from PG&E for breach of contract through the bankruptcy claims resolution process. ????"As the state's leading developer of new electric generating facilities, Calpine remains committed to providing innovative solutions for California's energy crisis," stated Calpine CEO Peter Cartwright. ?"Calpine's natural gas and geothermal Qualifying Facilities offer a critical, immediate and long-term electricity supply for California power consumers at attractive prices. ?We will continue to work with PG&E to resolve these issues and will be actively involved in all bankruptcy proceedings to ensure California power consumers can benefit from these vital energy resources." ???Calpine will host a conference call to discuss PG&E's Chapter 11 filing today at 8:30 a.m. Pacific Daylight Time (11:30 a.m. Eastern Daylight Time). The call is available in a listen-only mode by dialing 800-370-0906 five minutes prior to the start of the conference call. ?International callers should dial 973-872-3100. ?In addition, Calpine will simulcast the conference call live via the Internet today. ?The webcast can be accessed and will be available for 30 days on the investor relations page of Calpine's website at www.calpine.com. ???Based in San Jose, Calif., Calpine Corporation is dedicated to providing customers with reliable and competitively priced electricity. ?Calpine is focused on clean, efficient, natural gas-fired generation and is the world's largest producer of renewable geothermal energy. ?Calpine has launched the largest power development program in North America. ?To date, the company has approximately 31,200 megawatts of base load capacity and 6,500 megawatts of peaking capacity in operation, under construction and in announced development in 28 states and Canada. ?The company was founded in 1984 and is publicly traded on the New York Stock Exchange under the symbol CPN. ?For more information about Calpine, visit its website at www.calpine.com. ???This news release discusses certain matters that may be considered "forward-looking" statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements regarding the intent, belief or current expectations of Calpine Corporation ("the Company") and its management. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve a number of risks and uncertainties that could materially affect actual results such as, but not limited to, (i) changes in government regulations, including pending changes in California, and anticipated deregulation of the electric energy industry, (ii) commercial operations of new plants that may be delayed or prevented because of various development and construction risks, such as a failure to obtain financing and the necessary permits to operate or the failure of third-party contractors to perform their contractual obligations, (iii) cost estimates are preliminary and actual cost may be higher than estimated, (iv) the assurance that the Company will develop additional plants, (v) a competitor's development of a lower-cost generating gas-fired power plant, and (vi) the risks associated with marketing and selling power from power plants in the newly competitive energy market. ?Prospective investors are also cautioned that the California energy environment remains volatile, especially in light of Pacific Gas and Electric Company's Chapter 11 bankruptcy filing, including uncertainties and delays inherent in the bankruptcy process, where the court sits as a court of equity and must reconcile the competing interests of multiple parties. ?The Company's management is working closely with a number of parties to resolve the current uncertainty, while protecting the Company's interests. ?Management believes that a final resolution will not have a material adverse impact on the Company. ?Prospective investors are also referred to the other risks identified from time to time in the Company's reports and registration statements filed with the Securities and Exchange Commission. ??SOURCE Calpine Corporation CONTACT: Bill Highlander, 408-995-5115, ext. 1244, or investors, Rick Barraza, 408-995-5115, ext. 1125, both of Calpine Corporation URL: http://www.prnewswire.com LOAD-DATE: April 9, 2001 ??????????????????????????????3 of 305 DOCUMENTS ???????????????????????Copyright 2001 Associated Press ??????????????????????????????????AP Online ?????????????????April 9, 2001; Monday 5:13 AM, Eastern Time SECTION: Financial pages LENGTH: 970 words HEADLINE: ?Governor Davis, Utility Toss Blame BYLINE: GARY GENTILE DATELINE: LOS ANGELES BODY: ???Gov. Gray Davis and Pacific Gas & Electric executives traded acrimonious barbs but no solutions as the state's largest utility headed into bankruptcy court claiming $9 billion in debts. ??On Sunday, Davis appeared on two nationally televised news programs to berate PG&E for awarding an estimated $50 million in bonuses and raises to about 6,000 midlevel managers and support staff on the eve of its filing for bankruptcy protection Friday. ??''Management at PG&E is just focused upon padding their own pockets, not in discharging their duty to serve their many customers in California,'' Davis said on ABC's ''World News Tonight.'' ??Earlier, Davis had issued a statement saying PG&E ''management is suffering from two afflictions: Denial and greed.'' ??In response, PG&E defended their employee bonus package and took a swipe at the governor. ??''Instead of focusing all his attention on solving the state's yearlong and ever-worsening energy crisis, the governor has launched a campaign-style attack on our company,'' a PG&E statement read. ??The rancor came at the start of a hectic week. A San Francisco bankruptcy judge was to hold PG&E's first bankruptcy hearing Monday or Tuesday to determine, among other priorities, which creditors will be paid and in what order. ??Davis, meanwhile, was still locked in faltering negotiations with Southern California Edison, the state's second-largest utility, which also claims the state's flawed 1996 deregulation law is the cause of its financial woes. ??Davis is hoping to strike a deal to buy Edison's share of the power transmission system for $2.76 billion, which would provide Edison with a much-needed cash-flow to restructure its debt. ??SoCal Edison executives have said they would continue negotiations with Davis, but weekend talks in San Francisco failed to resolve any of the outstanding issues on the table, said Davis' spokesman Steven Maviglio. ??Edison was to file an update on its financial condition with the Securities and Exchange Commission on Monday. ??___ ??On the Net: ??Pacific Gas and Electric Co.: http://www.pge.com ?????(PROFILE ?????(CO:Pacific Gas and Electric; TS:PCG; IG:ELC;) ?????(CO:Southern California Edison Co.; TS:SCE;) ?????) LOAD-DATE: April 9, 2001 ??????????????????????????????4 of 305 DOCUMENTS ???????????????????????Copyright 2001 Associated Press ??????????????????????????????????AP Online ?????????????????April 8, 2001; Sunday 7:17 PM, Eastern Time SECTION: Financial pages LENGTH: 408 words HEADLINE: ?PG&E Investors Worry About Nest Eggs DATELINE: SAN FRANCISCO BODY: ???Stocks that were once thought to be as safe as the bank plummeted with Pacific Gas and Electric Co.'s bankruptcy filing last week, leaving many investors with empty nest eggs. ??''About all it's good for now is that I can light a fire with it,'' said J.P. Abbott, 80, a retired Walnut Creek transportation executive. ??Abbott and his wife have been reinvesting dividends from their 500 shares of PG&E stock for the past 20 years. They had recently been talking about cashing out, but weren't quick enough to beat Friday's news. ??PG&E filed for federal bankruptcy protection hours after Gov. Gray Davis delivered a public speech Thursday about the state's energy crisis. ??PG&E Corp. Chairman Robert Glynn said negotiations with Davis had broken down, and Chapter 11 was the only alternative left to alleviate the company's $9 billion debt it accumulated from buying energy for customers whose rates were capped. ??''We've heard a lot of the words that have been involved, but have not seen a lot of actions,'' Glynn said. ??Shares of PG&E Corp. stock fell more than 37 percent Friday when trading resumed after a halt of more than two hours. The shares closed at $7.20, down $4.18, on the New York Stock Exchange. The 52-week high was $32.50. ??The company was founded in 1905, and by 1935 it was Northern California's dominant supplier of gas and electricity and a stable place to invest money. ??Over the years, many of it's employees bought stock. The utility estimates 80 percent of them own shares. ??Don Gregory, 69, of San Rafael kept 3,000 shares, or one-third, of his PG&E stock after retiring from the company in 1987. Now he wishes he'd sold it all while times were good. ??A federal bankruptcy judge will now provide a framework for PG&E's creditors to collect some of their money, while allowing the utility to operate normally. ??The judge also has the power to order consumers to pay PG&E's debts. ??In filing for Chapter 11 federal bankruptcy protection, PG&E said it also has $2.6 billion in cash and bills of $4.4 billion. ??California utilities, including PG&E, are struggling with massive debts related to the state's power crisis. Utilities have been crippled by skyrocketing wholesale energy prices, which they haven't been able to pass along to consumers under the rules of a recent deregulation of the state's power market. ?????(PROFILE ?????(CO:Pacific Gas and Electric; TS:PCG; IG:ELC;) ?????) LOAD-DATE: April 8, 2001 ??????????????????????????????6 of 305 DOCUMENTS ??????????????Copyright 2001 Bulletin Broadfaxing Network, Inc. ??????????????????????????The Bulletin's Frontrunner ????????????????????????????????April 9, 2001 LENGTH: 1419 words HEADLINE: California Governor, PG&E Trade Shots In Wake Of Utility's Bankruptcy Filing. BODY: ??ABC News (4/8, story 4, Muller) reported last night, "Reaction was swift and angry to the news that, just hours before declaring bankruptcy, PG&E awarded $50 million in bonuses to some 6,000 employees." Gov. Gray Davis was shown saying, "Management at PG&E is just focused on padding their own pockets, not in discharging their duty to serve their many customers in California." ABC added, "PG&E, in turn, criticized the Governor for launching a campaign-style attack, adding that the bonuses went not to senior executives but to midlevel employees who 'had worked tirelessly through this crisis.' And, in fact, bankruptcy attorneys say such payments are not unusual during Chapter 11 reorganization. . Reasonable or outrageous, all this bickering has fueled the animosity between the Governor and the utility. And that worries even the Governor's allies in the state capital. . Certainly, the stakes are high. If the state cannot resolve its energy crisis, the economy will suffer, far beyond the borders of California." The Washington Post/Reuters (4/9) reports that PG&E "defended its award of $50 million in employee bonuses a day before declaring bankruptcy. 'The money was part of our employees' overall compensation package. Part of it is based on the financial condition of the company, and part is based on meeting departmental targets,' Ron Low, a spokesman for Pacific G&E, a unit of PG&E Corp., said today." The Los Angeles Times (4/9) editorializes, "The bankruptcy of Pacific Gas & Electric has legal scholars puzzling over how federal court supervision of the debt-ridden utility will affect rate-setting, sale of assets such as the transmission system and the state's role in the crisis. ?And that's apart from figuring out how it affects Southern California Edison, the chief private utility in the southern part of the state. Despite executives' denials of any bankruptcy plans, will Edison be forced into the same boat? Even with all these questions, a good shake can have benefits." The Times adds, "If PG&E's bankruptcy speeds debt resolution and focuses the governor and Legislature on reforming the state's power generation, transmission and pricing systems, business will welcome any increase in predictability. Californians are starved for answers. The federal court's involvement, despite the grave circumstances, could provide some." ??Cheney Says Administration Has Responded "Very Aggressively." Vice President Dick Cheney, asked on "Meet The Press" (4/8), whether the power shortage in California was just a California problem said, "No, it's not. We've in fact responded very aggressively to Governor Davis's request. We've approved virtually every request he's made, in terms of speeding up the permitting process, so they can get the permits they need. We have dealt as effectively as possible, much more effectively than the Clinton administration ever did. Separate and apart from that, of course, the President is the first one in a long time to put together a task force, which I chair now, to develop a national energy policy to deal with these kinds of problems in the future. But for the Democrats to be making noises that somehow we've been in office now 10 weeks and the shortage of power in California is something we caused is just silly." ??Bankruptcy Judge Profiled. The Los Angeles Times (4/9, Dolan) profiles US Bankruptcy Judge Dennis Montali, "who will oversee Pacific Gas & Electric Co. 's bankruptcy reorganization." The Times reports Montali "is a highly respected scholar and effective mediator known for persuading reluctant parties to reach agreement. In a recent case, Montali achieved in only three days a settlement between a debtor and creditors in the bankruptcy of an international engineering firm. The case had been in bruising litigation for two years when another judge asked Montali to mediate it." The Times adds, " He will be calling the shots in one of the largest bankruptcy reorganizations in US history. The case raises unprecedented legal questions and is expected to make new law. Some of the legal disputes may wind up before the US Supreme Court, attorneys said. Lawyers who know the easygoing, witty judge say he is probably relishing this legal challenge the way a golfer looks forward to playing a new and more difficult course. The court action begins today, when Montali is expected to decide whether PG&E can spend cash that others have laid claims to." The New York Times (4/9, Holson) reports that experts "are divided about how much power Dennis Montali.can wield. First, there is little case history for Judge Montali to rely on. Previous utility bankruptcies have dealt with different issues and paled in comparison to Pacific Gas and Electric's troubles, which is the largest investor-owned utility bankruptcy filing in history and the third-largest corporate bankruptcy ever. Second, industry experts say that any rate increases included in the utility's reorganization plan would have to be approved by the California Public Utilities Commission." The Times adds, "The judge will have to sort out which creditors get paid first. Most analysts think that the power generators will be first in line. But whether the money from any rate increases will be funneled to the state, which has been buying electricity on behalf of the troubled utilities, or to the utilities will be hotly debated in court. If the bankruptcy judge decides to side with utilities, that could jeopardize the state's already tenuous plan to issue as much as $14 billion in revenue bonds, which would be used to help cover the state's energy spending." The Times also reports, "Whatever the outcome, Pacific Gas and Electric will not be able to escape what it seems to be trying to avoid: a political solution. Governor Davis and regulators will still play a role in resolving the broader energy crisis here despite critics who say they have failed miserably thus far. The judge, too, will have to negotiate over rate increases with the Public Utilities Commission -- which will be keeping more than a watchful eye on the proceedings -- when a plan is adopted." ??Publicity Aside, California Still Pays Less For Power Than Several States. The Los Angeles Times (4/9, Slater) reports, "For all its energy notoriety and outrage over surging electricity rates, California has plenty of company. Much of the nation faces double-digit price hikes, and several states -- especially in the East -- continue to pay more for electricity than California. . Overshadowed by the rhetoric, lawsuits and rolling blackouts is the fact that Californians have been paying less for electricity than residents in Rhode Island, New Hampshire, Vermont, New York, Alaska and, by a longshot, Hawaii. California, in fact, is barely in the top 10 when it comes to electrical prices." The Times adds, "One of the reasons that Californians have been paying less is because they conserve more, with the average resident draining 40% less from the grid than the average American. Another reason, however, is that California's rates have been frozen by law, even as the lids have been coming off the prices in other states that are deregulating their utilities." ??Oklahoma Building 14 Power Plants In Hopes Of Generating Revenue From Western Power Crisis. ABC News (4/8, story 5, Simpson) reported last night, " The power crisis is not universally bad news. One state, Oklahoma, is betting that its willingness to welcome power plants will pay off down the road." ABC (Karlinsky) added, "It is a power plant. Under construction even though the entire state already has all the power it needs. 14 new power plants are being built statewide. Private power producers are moving in with one goal -- to make power in Oklahoma and sell it to the rest of the country. . Much of the power will be exported to parts of the Southeast and Southwest where energy shortfalls haven't yet reached California proportions, but where demand is growing quickly. Analysts say the state will make hundreds of millions of dollars in tax revenue while creating more than 20,000 jobs, revitalizing small towns like Coweta by luring companies in with new tax incentives. Analysts say making electricity could be the biggest boom to hit this state since the oil rush of the early 1900s. . With the nation's third largest supply of natural gas available to run the plants, the only obstacle so far has been finding enough transmission lines to get the power to the markets that need it." LOAD-DATE: April 9, 2001 ?????????????????????????????15 of 305 DOCUMENTS ??????????????????Copyright 2001 The Financial Times Limited ???????????????????????????Financial Times (London) ????????????????????April 9, 2001, Monday London Edition 1 SECTION: COMPANIES & FINANCE INTERNATIONAL; Pg. 28 LENGTH: 340 words HEADLINE: COMPANIES & FINANCE INTERNATIONAL: Southern Edison says no to filing BYLINE: By PAUL ABRAHAMS DATELINE: SAN FRANCISCO BODY: ??Southern California Edison, the state's second-biggest electricity distributor, said over the weekend that it had no intention of emulating Pacific Gas & Electric, whose electricity distribution business on Friday filed for Chapter 11 bankruptcy. ??On Saturday Southern Edison executives met Gray Davis, California's embattled governor. He spent the rest of the weekend with his legal team discussing a strategy to ensure northern California's electricity supply. ??PG&E's decision to seek bankruptcy for its distribution operations, almost immediately after Mr Davis made a rare state-wide television speech last Thursday evening, is a serious embarrassment to the moderate Democratic governor. During the address he had conceded the need for price rises of up to 40 per cent. ??Mr Davis had previously promised to prevent sharp increases in electricity prices. He had also undertaken to stop the state's utilities declaring bankruptcy following California's botched 1996 power deregulation. Mr Davis's office said the governor had been surprised by PG&E's decision. ??The deregulation allowed for free pricing in California's wholesale electricity market, but prevented distributors such as PG&E from passing on increased costs to consumers. PG&E lost Dollars 8.9bn because of massive increases in the cost of wholesale electricity that it could not recoup from its customers. Energy costs it should have reimbursed were running at Dollars 300m a month. At the end March, the group had Dollars 2.6bn in cash and Dollars 4.4bn of outstanding bills. ??The financial impact of PG&E's collapse is likely to be considerable. Among PG&E's leading lenders are Bank of New York, which was owed Dollars 2.2bn in September, as well as Bank of America, Wells Fargo and JP Morgan Chase. ??Bond insurance companies with exposure to California utilities debt include MBIA and Ambac Financial Group, whose shares fell 9.3 per cent and 4.7 per cent respectively on Friday. MBIA said its direct net par exposure to PG&E was about Dollars 590m. LOAD-DATE: April 8, 2001 ?????????????????????????????16 of 305 DOCUMENTS ??????????????????Copyright 2001 The Financial Times Limited ???????????????????????????Financial Times (London) ?????????????????????April 9, 2001, Monday USA Edition 1 SECTION: GLOBAL INVESTING; Pg. 28 LENGTH: 729 words HEADLINE: GLOBAL INVESTING: Hard sell expected for California bonds: While details are sketchy, the state is hoping to help solve its power troubles through the Dollars 10bn-Dollars 14bn issue, BODY: ??California officials might have to draw on a hard-sell technique to lure investors to the mammoth Dollars 10bn-Dollars 14bn bond issue the state hopes to sell to help solve its power troubles. ??But industry participants say the state probably plans to do just that, rather than risk a lukewarm investor appetite for a complex municipal bond deal that would be a record for California and among the largest in the market's history. ??"This issue will be well received (among investors) if the state does a good job in detailing both the financing and flow of funds given the extraordinary circumstances," said Steve Kelleher, senior vice president with bond firm Sutro & Co in San Francisco. ??The devil is in the details, said traders, and the state is about as short on specifics as it is on electricity reserves. ??Last week, the California Public Utilities Commission set an annual revenue target of Dollars 3.35bn in collections from the utilities for power purchased by the state on their behalf. Under state law, that amount allows for maximum bond size of between Dollars 12bn and Dollars 14bn if the state opts to go ahead and issue the debt. ??In turn, proceeds from the bond sale, which is expected in May, would be used by the state to purchase more power. ??The state began buying power on behalf of PG&E Corp's Pacific Gas and Electric unit - which filed for Chapter 11 bankruptcy on Friday - and Edison International's Southern California Edison subsidiary in January. The utilities have run up more than Dollars 13bn in debt buying power on the spot wholesale market, which they must sell at rates capped by state regulators well below their costs. ??Proceeds from the bond sale are expected to be used to pay back the state's general fund, which has already been tapped for billions of dollars in power purchases, and to pay for long-term power contracts negotiated by Governor Gray Davis and power generators. ??Selling bonds is just one part of a contentious financial plan outlined by Mr Davis and state officials to combat the power crisis as the heavy summer usage season nears. ??Warren Gordon, a manager on the tax-exempt trading desk with Charles Schwab in San Francisco, said the muni market does not even know yet whether the offering will comprise taxable and tax-exempt securities and what the allocation might be between the two. ??But he said that despite the state's power woes, the water authority has been historically "one of the strongest credits (in the marketplace) . . . a good trading name," a record that might help win investor interest. ??Even as the state's general obligation debt was placed on credit watch by rating agency Standard & Poor's earlier this year, the water resource department maintained its strong AA rating and stayed clear of credit watch owing to a strong revenue surplus. ??Philip Angelides, state treasurer, has also proposed a bridge loan to help the water authority, which has already spent about Dollars 4bn on power costs. Longer-term bond proceeds would pay off the short-term loan. ??JP Morgan Chase, which has been named lead underwriter of the power debt, previously said it could arrange a Dollars 3bn bridge loan until the bonds could be sold. ??"It's an interesting financing" plan, Mr Gordon said of the state's proposal. Remaining questions over the revenue stream to support the bonds leave the market unclear whether the debt would be considered private-activity bonds or bonds to be backed by money from the general fund, which can determine their credit ratings and, essentially, the interest owed bondholders, Mr Gordon said. ??Among other things, the CPUC must determine what part of recent consumer rate increases will go to the state and how much of any revenue stream from consumer bills would go to servicing debt on the bonds, the panel said. ??Mr Kelleher said the pending deal compares to the unprecedented bond sale by the Long Island Power Authority a few years ago. For that deal, bond sellers "went overboard in educating investors," he said. ??California officials "know that the market isn't going to swallow up a Dollars 9bn to Dollars 14bn issue just because we're sunny and good looking. ??"The opinion in the br
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