california update 4 / 9 / 01 here is what we know so far with the recent announcement of a deal between socal and the state for the transmission lines :
? the deal may be enough to save socal from bankruptcy . this will depend on the payment terms as well as how soon socal can receive a positive cash flow .
? we are not sure if the state can really do a deal without pg & e or a deal for whole grid . it was thought that a transmission asset deal was not possible without pg the state may still be making the deal contingent upon the purchasing of pg & e ' s assets . a generator source reports that the state is intending to put pressure on the bankruptcy court to close the deal on pg & e ' s lines quickly . however , bankruptcy courts usually do not operate in this manner . in most cases the court would have to hold open proceedings , have competitive bids , etc .
? this purchase would need legislative approval , which is not guaranteed . previously the plan was for the state to purchase sce ' s and pg & e ' s assets at a premium so that they would not have to finance power purchases - the utilities would be able to buy power for themselves . now they would have to purchase sce ' s lines , but still finance power purchases because of pg & e . additionally , it is possible that socal swapped the clause allowing then to raise rates in order to recoup past debt in favor for an additional book price . if this any form of a utility bailout - it would probably no gain legislative approval .
? the purchase would also need ferc approval . as stated before , if ferc approves such a plan it would be with several conditions for california .
california update 4 / 9 / 01
here is what we know so far with the recent announcement of a deal between socal and the state for the transmission lines :
? the deal may be enough to save socal from bankruptcy . this will depend on the payment terms as well as how soon socal can receive a positive cash flow .
? we are not sure if the state can really do a deal without pg & e or a deal for whole grid . it was thought that a transmission asset deal was not possible without pg the state may still be making the deal contingent upon the purchasing of pg & e ' s assets . a generator source reports that the state is intending to put pressure on the bankruptcy court to close the deal on pg & e ' s lines quickly . however , bankruptcy courts usually do not operate in this manner . in most cases the court would have to hold open proceedings , have competitive bids , etc .
? this purchase would need legislative approval , which is not guaranteed . previously the plan was for the state to purchase sce ' s and pg & e ' s assets at a premium so that they would not have to finance power purchases - the utilities would be able to buy power for themselves . now they would have to purchase sce ' s lines , but still finance power purchases because of pg & e . additionally , it is possible that socal swapped the clause allowing then to raise rates in order to recoup past debt in favor for an additional book price . if this any form of a utility bailout - it would probably no gain legislative approval .
? the purchase would also need ferc approval . as stated before , if ferc approves such a plan it would be with several conditions for california .