california update # 2 , 5 / 23 / 01 republican plan b
a source reports the following regarding the republican plan b proposal :
? encourage direct access for consumers . ( the problem with this , however , is that these direct access deals would not have a dedicated rate component , and too many might undermine the cash flow and credit worthiness of the bonds . )
? the republicans will " suggest " that generators take a 30 % haircut . " we think this is doable . "
? the republicans strongly oppose purchasing the transmission assets .
? restore the invetor - owned utility model for generation . they would establish a dedicated rate component for construction of native generation by the utilities . they would grant ratepayers equity interest in these plants .
? resolve the qfs ' financial issues .
assemblyman cox commented afterward that the republcans have been trying to work on a bilateral basis with the democrats on these issues , but they feel " frozen out . " moreover , he senses the democrats moving back toward having an option to purchase socal ' s transmission assets , which the republicans oppose .
democratic plan b
a source reports the following regarding the democratic plan b :
? the democrats are formulating a plan b that incorporates the governor ' s mou , the nation plan b and other ideas that they have . this plan reportedly has not yet been introduced into the legislature yet because it is still being finalized and the democrats are not certain that it will work . specifically , the option to purchase socal ' s transmission assets is reportedly still being debated . some democrats reportedly believe that this may be unnecessary .
? the details of the plan are reportedly as follows :
- set aside the $ 3 . 1 bilion undercollect in a separate account funded by a dedicated rate component .
- the generators can either get a check instantly from the bonds for 70 % of their claim or they can try to get up to 100 % of their claim adjudicated through a dispute .
- this plan could be used as a template for going to the bankruptcy judge to strike a deal for pg & e .
? sources indicate that the democrats are developing a post - petition plan in cast socal files for bankruptcy , including the following :
- the state would buy both utilities out of bankruptcy . it then would sell of pieces of the utilities to various private - sector buyers , but with a lifetime stipulation on how they will be run .
- some democrats reportedly believe the state could do this with as little as $ 5 billion if it assumed the utilities ' debt and got a cram - down by the bankrutpcy judge to quell the protests against such a plan that would very likely erupt . democrats reportedly believe that the judge montali would support this idea .
california update # 2 , 5 / 23 / 01
republican plan b
a source reports the following regarding the republican plan b proposal :
? encourage direct access for consumers . ( the problem with this , however , is that these direct access deals would not have a dedicated rate component , and too many might undermine the cash flow and credit worthiness of the bonds . )
? the republicans will " suggest " that generators take a 30 % haircut . " we think this is doable . "
? the republicans strongly oppose purchasing the transmission assets .
? restore the invetor - owned utility model for generation . they would establish a dedicated rate component for construction of native generation by the utilities . they would grant ratepayers equity interest in these plants .
? resolve the qfs ' financial issues .
assemblyman cox commented afterward that the republcans have been trying to work on a bilateral basis with the democrats on these issues , but they feel " frozen out . " moreover , he senses the democrats moving back toward having an option to purchase socal ' s transmission assets , which the republicans oppose .
democratic plan b
a source reports the following regarding the democratic plan b :
? the democrats are formulating a plan b that incorporates the governor ' s mou , the nation plan b and other ideas that they have . this plan reportedly has not yet been introduced into the legislature yet because it is still being finalized and the democrats are not certain that it will work . specifically , the option to purchase socal ' s transmission assets is reportedly still being debated . some democrats reportedly believe that this may be unnecessary .
? the details of the plan are reportedly as follows :
- set aside the $ 3 . 1 bilion undercollect in a separate account funded by a dedicated rate component .
- the generators can either get a check instantly from the bonds for 70 % of their claim or they can try to get up to 100 % of their claim adjudicated through a dispute .
- this plan could be used as a template for going to the bankruptcy judge to strike a deal for pg & e .
? sources indicate that the democrats are developing a post - petition plan in cast socal files for bankruptcy , including the following :
- the state would buy both utilities out of bankruptcy . it then would sell of pieces of the utilities to various private - sector buyers , but with a lifetime stipulation on how they will be run .
- some democrats reportedly believe the state could do this with as little as $ 5 billion if it assumed the utilities ' debt and got a cram - down by the bankrutpcy judge to quell the protests against such a plan that would very likely erupt . democrats reportedly believe that the judge montali would support this idea .