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Enron Mail |
Please feel free to address any California or western power questions/comme=
nts to G. Britt Whitman at ex: 54014 or Kristin Walsh at ex: 39510. EXECUTIVE SUMMARY ? Legislative Maneuvering Towards a Bail-Out Plan=20 MOU Developments The Assembly Energy Costs and Availability Committee held hearings yesterda= y on the SoCal bailout plan, AB 82. The chairman of the committee, Rod Wri= ght, has agreed with Hertzberg and Davis to move something out of the commi= ttee, possibly by mid-week. Much of the Assembly's efforts to move along a= comprehensive plan have been encumbered by the introduction of over 50 ame= ndments. Additionally, demonstrations by a group of farmers and resort own= ers opposing the conservation easement provision included in the bill may a= lso slow the process. Three Central Valley Democrats (Reyes, Flores and Canciamilla) on the Assem= bly Committee on Energy Costs and Availability will likely be paying close = attention to the demonstrations against the conservation easements, as farm= ers are significant in their districts. All three legislators face reelect= ion. Reyes has already signaled that, even though she voted for the bailou= t last time, she is disinclining to do so again. These three Democrats may= impede the progress of the bailout. There are strong indications that the= plan will not come to a vote until it has the necessary votes to pass. At= this point there still appears to be a lack of consensus on the Democratic= side. Another substantive amendment to the current plan has been a call by SoCal = for "fair market value" of its transmission assets, rather than book value.= This value, of course, would have to be estimated and essentially means t= hat even more money would have to go toward the bailout. While Committee C= hairman Wright would not oppose this idea, it will likely be hard for many = of his colleagues to swallow, particularly on the Senate side. Once the amendments are disposed of and the bailout plan clears the Assembl= y Energy Costs and Availability Committee, it will then go to Assembly Appr= opriations. The chair of this committee, Carol Migden, is friendly with bo= th Hertzberg and Governor Davis, so the plan appears unlikely to receive si= gnificant opposition in her committee. It will then go to the Assembly flo= or for a vote. Since it is likely some sort of bailout plan will pass the = Assembly, it likely will fall to the Senate to decide ultimately if a SoCal= bailout makes it to the governor or not. Therefore, it becomes important = to examine what deals might be made between Burton and Davis in order to ge= t a bailout through the Senate. For example, Burton wants a change in the = workers' compensation laws to increase payouts to workers. This is a very = important issue. On the one hand, both trial lawyers and the unions suppor= t Burton. On the other hand, he is strongly opposed by the powerful CTMA, = the Republicans and pro-business Democrats, including Governor Davis. In f= act, Davis has already vetoed this legislation at least once and has promis= ed to do so again. It is conceivable, though unlikely, that a deal could b= e struck whereby Burton would allow a SoCal bailout to pass in exchange for= Davis signing workers' compensation reform. However, if this were to happ= en, both the bailout and the workers' comp reform together would be an enor= mous burden on California businesses at a time when these businesses are no= t doing well. This is why a deal on this particular topic appears unlikely= at this time.
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