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Enron Mail |
Further footnotes on the Democrat and Republican Plan B's. The key questions
now are: 1. When will the Democrats announce the Keeley plan? Will Davis support it? Best estimate- Davis will support it quietly, but Keeley will take the lead, probably announcing an abandonment of the transmission line deal and the new plan by the end of the week. 2. How will the generators react to the 70 percent "haircut" proposed by both parties? Best estimate- we will have reports from the generators tomorrow. An argument could be made that the appeal of a quick solution is strong. 3. Will the financial pressure on SoCal force them into b.k. before a deal can be put together? Best estimate- big risk here. More and more small creditors (QFs, City of Long Beach) are going after SoCal assets. Also, SoCal also warned that if the original MOU was altered by the legislature, that they would have to go b.k. We will continue to monitor and update as information comes in. Until these questions are answered, our outlook continues to be for a SoCal b.k. filing.
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