california update 6 / 21 / 01 executive summary
? dwr contracts being negotiated
? california legislature comment on plan b
long term contracts
sources report that the state ' s lawyers are currently examining how to break the recently negotiated long term power contracts . assemblyman fred keeley has directed his staff to go through and look for any loopholes and sources also believe that the state is looking for ways to " hold the generators to the contracts they want to keep , but break those contracts that they want to break . "
sources gathered the following information on plan b through private interviews with california legislatures sen . john burton and assembly speaker robert hertzberg .
speaker robert hertzberg :
? speaker hertzberg has spent most of his time lately on the budget , but continues to make efforts related to the plan b . hertzberg is very aware how unlikely it is that he will succeed in putting any plan through the legislature , particularly the senate . ( he believes it will be possible to put a plan b through the assembly ) .
? hertzberg is personally committed to at least attempting to put a plan b through the legislature . this is because he is close to business and wants to see socal saved . he " wants a win under his belt before he leaves the senate next year " so that he can take that win into whatever he does next . davis has laid the burden of bailing out socal on hertzberg . hertzberg is determined to put a piece of legislation on the floor . however , he does not , at this time , know when this will happen , nor does he know what the share of the dedicated rate component will be for businesses and ratepayers , which remains a key sticking point .
? when asked about plan b ' s chances of passing the senate , hertzberg responded that , " miracles can happen . "
? hertzberg defended his idea of setting aside a trust as part of plan b for the generators to litigate over . he stated that his bankruptcy attorney believes that it will work , despite what goode ( the governor ' s attorney ) has said .
sen . john burton :
? burton is aware that hertzberg is trying to put together plan b legislation and when asked about hertzberg ' s efforts , burton stated that in the senate " plan b has no republican votes , and there are , at a minimum , 6 democrats that will vote against it . " burton said that for a plan b bailout to pass the senate , it would have to have three elements :
? businesses would pay the entire dedicated rate component .
? the edison parent company would have to give the state $ 1 b .
? all creditors would have to take a 30 % haircut .
? burton wants senator bowen to hold hearings on the plan b that will run for at least 3 days , then have a " long caucus . " at that point the senate will either " hold an up - or - down vote on whatever comes from the assembly or add amendments [ stating the three provisions above ] . " burton wants " all senators to know exactly what they ' re voting for or against . "
? burton stated that he would " bet against " a plan b passing . " this is not gonna happen , " he stated . burton believes that a bailout deal would be bad for the democratic party .
california update 6 / 21 / 01
executive summary
? dwr contracts being negotiated
? california legislature comment on plan b
long term contracts
sources report that the state ' s lawyers are currently examining how to break the recently negotiated long term power contracts . assemblyman fred keeley has directed his staff to go through and look for any loopholes and sources also believe that the state is looking for ways to " hold the generators to the contracts they want to keep , but break those contracts that they want to break . "
sources gathered the following information on plan b through private interviews with california legislatures sen . john burton and assembly speaker robert hertzberg .
speaker robert hertzberg :
? speaker hertzberg has spent most of his time lately on the budget , but continues to make efforts related to the plan b . hertzberg is very aware how unlikely it is that he will succeed in putting any plan through the legislature , particularly the senate . ( he believes it will be possible to put a plan b through the assembly ) .
? hertzberg is personally committed to at least attempting to put a plan b through the legislature . this is because he is close to business and wants to see socal saved . he " wants a win under his belt before he leaves the senate next year " so that he can take that win into whatever he does next . davis has laid the burden of bailing out socal on hertzberg . hertzberg is determined to put a piece of legislation on the floor . however , he does not , at this time , know when this will happen , nor does he know what the share of the dedicated rate component will be for businesses and ratepayers , which remains a key sticking point .
? when asked about plan b ' s chances of passing the senate , hertzberg responded that , " miracles can happen . "
? hertzberg defended his idea of setting aside a trust as part of plan b for the generators to litigate over . he stated that his bankruptcy attorney believes that it will work , despite what goode ( the governor ' s attorney ) has said .
sen . john burton :
? burton is aware that hertzberg is trying to put together plan b legislation and when asked about hertzberg ' s efforts , burton stated that in the senate " plan b has no republican votes , and there are , at a minimum , 6 democrats that will vote against it . " burton said that for a plan b bailout to pass the senate , it would have to have three elements :
? businesses would pay the entire dedicated rate component .
? the edison parent company would have to give the state $ 1 b .
? all creditors would have to take a 30 % haircut .
? burton wants senator bowen to hold hearings on the plan b that will run for at least 3 days , then have a " long caucus . " at that point the senate will either " hold an up - or - down vote on whatever comes from the assembly or add amendments [ stating the three provisions above ] . " burton wants " all senators to know exactly what they ' re voting for or against . "
? burton stated that he would " bet against " a plan b passing . " this is not gonna happen , " he stated . burton believes that a bailout deal would be bad for the democratic party .