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Enron Mail |
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EXECUTIVE SUMMARY
?=09California Budget Resolved ?=09FERC Ordered Energy Settlements Stall MOU/Plan B=20 BUDGET California legislators in the House have once again established a tentative= reserve amount for the state's depleted budget. Both sides are reportedly= uneasy with the $2.74B compromise and sources indicate that the four Repub= lican votes needed to pass the budget in the Assembly are likely far more = obtainable than the one Republican vote needed in the Senate. California's= current redistricting process may provide Republicans with future seats th= at could translate into immediate bargaining power in energy and budget mat= ters. Adding to the frustration, sources indicate that consumer activist H= arvey Rosenfield plans to pressure State Treasurer Angelides into battling= with legislators for progress on the budget and revenue bonds. ENERGY SETTLEMENTS Today marked opening negotiations for California state energy officials and= the several large energy providers who are charged with price gouging Cali= fornians. Sources close to California State Sen. Burton report that the re= sults from the15 days of negotiations before the FERC appointed Administrat= ive Law Judge, Curtis Wagener, will significantly influence the state's eff= orts in promoting any Plan B or MOU. Burton indicated that FERC would need= to order between $3 and $4B in generator refunds before the state would fi= nalize a SoCal bail-out. Of that amount, SoCal would most likely be infuse= d with $1B, however, without substantial contributions from power providers= that sold into California and currently fall outside FERC's jurisdiction (= i.e. BC Hydro & LA DWP), a $3 to $5B refund would be impossible to achieve.= Regardless of legislators' desires, sources believe that consistent with= the PG&E bankruptcy advisor's view, a multibillion dollar refund from FERC= is unlikely. Sources will continue to monitor and report on these negotia= tions.
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