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Enron Mail |
?=09The extraordinary session is expected to close early next week, after t= he governor has signed SB 28X, a power plant siting bill. Yesterday, the g= overnor signed bond financing bill SB 31X. Once the extraordinary session = is closed, a new extraordinary session is expected to be opened immediately= . However, sources report that no one is certain if the bills from this se= ssion will have the same numbers in the next session. The legislature repo= rtedly is trying to arrange so that the bills will not have to be heard aga= in in committee. ?=09The MOU still does not have a sponsor. Governor Davis hopes to reach a= deal with Sempra for the state to purchase San Diego Gas and Electric's tr= ansmission assets. He reportedly feels that by having deals in place with = SoCal and SDG&E, enough momentum might be added to push the MOU through the= legislature. He then could go to the bankruptcy court and propose adding = PG&E's assets, since he would have two of the three pieces in place. The v= alidity of this logic seems questionable at best. Sources are skeptical th= at adding SDG&E to the MOU would increase the chances of the deal going thr= ough the legislature. Also, the governor has claimed to be close to having= a deal with SDG&E for several weeks, but such a deal has not yet been fina= lized. The governor stated that he will have a sponsor for the MOU by next= week when the bill will be introduced. The MOU might be introduced in the= legislature, then amended to indicate a lesser amount for the transmission= asset purchase. This still would not assure passage since so many legisla= tors reportedly are against the MOU. ?=09The windfall profits tax bill has not been set for hearing on the Assem= ble floor. =20 ?=09State Legislature, Elizabeth Hill, published a report earlier this week= regarding an analysis of state revenues. The report stated that revenues = for this year would be $3.4B less that was expected in January 2001, not in= cluding electricity costs. She predicts that ongoing state programs will h= ave to be cut by approximately $1.7B. ?=09Moody's has put California's credit rating under review for another dow= ngrade. Sources report that Moody's, S&P, and MBIA have all informed Calif= ornia that "the only way the state will improve its credit rating and look = better to investors is to get out of the power business and resolve the und= ercollected."
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