california update 9 - 19 - 2001 for questions or comments regarding this report please contact g . britt whitman at ex : 5 - 4014 or kristin walsh at ex : 3 - 9510 .
executive summary
? weekend developments of the socal mou
? socal & creditors weigh bankruptcy options
california senate adjourns without a bailout vote
as previously reported ( 9 / 14 ) , our prediction of sen . john burton discouraging support of the socal bailout did , in fact , play - out . burton ' s last minute vote polls indicated that there were only four senate democrats favoring the mou and an in extraordinary move , burton adjourned the senate without bothering to let ab 67 xx face a floor vote . the following outline the prevailing factors that led to burton ' s decision :
? reportedly , in addition to virtually no republican support , a coalition between at least 7 far left democrats and pro - business democrats convinced legislators not to vote on bailout legislation .
? at one point treasurer angelides pulled senator bowen aside and told her that the revenue bonds might sell with direct access after all . she then accused angelides of having lied to her about this in originally telling her that a bond sale would not be possible if direct access was included .
? both governor davis and treasurer angelides appear to have damaged their relationship with the senate . davis stated that he would not sign burton ' s legislation due to its ineffectiveness and additionally he would veto burton ' s bill separating the revenue streams for bond payment and payments for power .
given the state of relations in sacramento , senators are likely to offer little or no cooperation on a bailout plan if davis calls another emergency session . see burton ' s response ( paraphrased ) : " i ' m going to be on jury duty , and i ' m not going to exercise my right to be excused . " he ' s also not going to ask people to come back and , as of last saturday ( 9 / 15 ) , most people on the business democrat and republican side at least were not planning on doing so .
bankruptcy looms for socal
it currently looks bleak for socal . davis and bryson have expended their political capital on this effort . the creditors ' committee is reportedly meeting to discuss how , when and by whom a filing should take place . edison executives have assured davis that the company will not file for bankruptcy and that its creditors will show restraint . however , it ' s unclear whether all of the utility ' s creditors will forebear on an involuntary bankruptcy filing . spokespersons for several large generators said friday ( 9 / 14 ) afternoon that they couldn ' t speculate on what their companies would do if the legislature failed to act on the edison rescue bill that night . davis aides say the governor would seek a reduced rescue package for edison when the legislature returns , but in the meantime , davis continues informal negotiations with legislators in effort to stave - off socal ' s bankruptcy .
california update 9 - 19 - 2001
for questions or comments regarding this report please contact g . britt whitman at ex : 5 - 4014 or kristin walsh at ex : 3 - 9510 .
executive summary
? weekend developments of the socal mou
? socal & creditors weigh bankruptcy options
california senate adjourns without a bailout vote
as previously reported ( 9 / 14 ) , our prediction of sen . john burton discouraging support of the socal bailout did , in fact , play - out . burton ' s last minute vote polls indicated that there were only four senate democrats favoring the mou and an in extraordinary move , burton adjourned the senate without bothering to let ab 67 xx face a floor vote . the following outline the prevailing factors that led to burton ' s decision :
? reportedly , in addition to virtually no republican support , a coalition between at least 7 far left democrats and pro - business democrats convinced legislators not to vote on bailout legislation .
? at one point treasurer angelides pulled senator bowen aside and told her that the revenue bonds might sell with direct access after all . she then accused angelides of having lied to her about this in originally telling her that a bond sale would not be possible if direct access was included .
? both governor davis and treasurer angelides appear to have damaged their relationship with the senate . davis stated that he would not sign burton ' s legislation due to its ineffectiveness and additionally he would veto burton ' s bill separating the revenue streams for bond payment and payments for power .
given the state of relations in sacramento , senators are likely to offer little or no cooperation on a bailout plan if davis calls another emergency session . see burton ' s response ( paraphrased ) : " i ' m going to be on jury duty , and i ' m not going to exercise my right to be excused . " he ' s also not going to ask people to come back and , as of last saturday ( 9 / 15 ) , most people on the business democrat and republican side at least were not planning on doing so .
bankruptcy looms for socal
it currently looks bleak for socal . davis and bryson have expended their political capital on this effort . the creditors ' committee is reportedly meeting to discuss how , when and by whom a filing should take place . edison executives have assured davis that the company will not file for bankruptcy and that its creditors will show restraint . however , it ' s unclear whether all of the utility ' s creditors will forebear on an involuntary bankruptcy filing . spokespersons for several large generators said friday ( 9 / 14 ) afternoon that they couldn ' t speculate on what their companies would do if the legislature failed to act on the edison rescue bill that night . davis aides say the governor would seek a reduced rescue package for edison when the legislature returns , but in the meantime , davis continues informal negotiations with legislators in effort to stave - off socal ' s bankruptcy .