Weekly Report of 2/22/02

California:

Legislature - Non-partisan Legislative Analyst Elizabeth Hill reported that an additional shortfall of $5.0 billion for this fiscal year is now being predicted on top of the already passed cuts of $2.2 billion as assumed by Gov. Davis. This estimate is based on further errosion of tax revenues from capital gains and stock options and required payments to schools.

PG&E Plan of Reorganization. In response to the CPUC's alternative plan for reorganization for PG&E filed with the bankruptcy court earlier this month, PG&E filed their analysis. PG&E argues that the CPUC POR contains a $4.5 billion mistake because it overlooks such basic obligations as taxes and interest payments and could only be covered by a large increase in consumer power rates. Further, PG&E states that the Commission plan fails to budget money for improvements vital to preventing blackouts or to restore the utility's credit-worthiness to enable PG&E to begin buying power again. Judge Montali continues to review both plans.

New Mexico:

Legislature - In the final days of their 30 day session, the House passed a Memorial requesting that the PRC apply for and obtain funding from the federal Office of Pipeline Safety and to become authorized to conduct safety program audits, etc. on interstate gas pipeline facilities or liquid pipelines. This is consistent with the discussions held in public meetings last summer/fall by the Legislative subcommittee on safety and is in response to concerns from the El Paso incident a couple of years ago.

Schedule:

2/25-26 & 2/28,3/1 Omaha Office
2/27 (Wed.) Out of Office