california update 07 . 22 . 01 summary of the activities since friday :
overall , it ' s 50 - 50 or better that the legislature will finish up the budget and recess until august 20 th , without having passed some form of an " edison mou . " will have a better view of the chances of getting an mou agreed to and passed through both houses by cob monday .
in the senate :
the " edison mou " :
as previously reported , on friday , sb 78 - - - the senate ' s version of the edison mou - - passed out of the full senate and was sent to the full senate .
the bill sticks 100 % of suppliers ' debts with edison ' s shareholders but pays qfs and other creditors .
the authors believe that suppliers can ' t force edison into bankruptcy because the claims are with the px , not edison , which in their view means that the suppliers can ' t reach edison . our lawyers need to assess whether the tactic is strong from a legal perspective .
the bill creates an option to buy the transmission system , but rejects the goernor ' s mou , which buys it outright .
though there ' s some uncertainty , the bill appears to end direct access .
information we have indicates that the assembly does not support and will not pass sb 78 in its current form .
enron ( and the marjority of market participants ) opposes 78 .
the " dunn investigation " :
dunn released his report regarding contempt charges against enron on saturday .
the report recommends that the senate fine us , beginning with $ 1 , 000 the first day , and doubling everyday thereafter until enron " complies . "
dunn announced on saturday that he would attempt to bring the report to the full senate for a vote on saturday .
in response , our lobbyist in sacramento spoke to a leader of the republican party in the senate ( ross johnson ) , and persuaded johson to negotiate the date of the vote with burton and dunn .
she was successful - - - johnson went to burton and got him and dunn to agree not to vote on the report until the senate returned from its recess on august 20 th .
if the senate returns early , it could vote prior to the 20 th , but the likelihood of that happening appears low at this time .
the budget :
the senate passed the budget at about 1 am sunday morning .
the senate adjourned for recess after the vote and is not expected to return until august 20 th .
that leaves the assembly alone in sacramento to do its part regarding the budget and the edison mou .
the assembly
in short , leadership within the assembly is extremely weak and without much influence over its own party - - the democrats .
the speaker is viewed as having botched both the budget and the energy issue .
unable to do a deal , the assembly recessed saturday night and has not reconvened .
it has therefore not taken the votes needed to finish up with the budget .
the assembly also has not passed its version of an edison mou , which it says it intends to do .
best information we have right now is that the assembly does not plan to go back into session until tuesday morning .
late saturday night , the assembly speaker released yet another version of his edison mou ( ab 82 xx ) , but it does not appear at this time that he has enough votes among assembly democrats to pass it .
enron - - together with business customers - - opposes the version of 82 xx released on saturday night because it does not adequately ensure direct access .
best ,
jeff
california update 07 . 22 . 01
summary of the activities since friday :
overall , it ' s 50 - 50 or better that the legislature will finish up the budget and recess until august 20 th , without having passed some form of an " edison mou . " will have a better view of the chances of getting an mou agreed to and passed through both houses by cob monday .
in the senate :
the " edison mou " :
as previously reported , on friday , sb 78 - - - the senate ' s version of the edison mou - - passed out of the full senate and was sent to the full senate .
the bill sticks 100 % of suppliers ' debts with edison ' s shareholders but pays qfs and other creditors .
the authors believe that suppliers can ' t force edison into bankruptcy because the claims are with the px , not edison , which in their view means that the suppliers can ' t reach edison . our lawyers need to assess whether the tactic is strong from a legal perspective .
the bill creates an option to buy the transmission system , but rejects the goernor ' s mou , which buys it outright .
though there ' s some uncertainty , the bill appears to end direct access .
information we have indicates that the assembly does not support and will not pass sb 78 in its current form .
enron ( and the marjority of market participants ) opposes 78 .
the " dunn investigation " :
dunn released his report regarding contempt charges against enron on saturday .
the report recommends that the senate fine us , beginning with $ 1 , 000 the first day , and doubling everyday thereafter until enron " complies . "
dunn announced on saturday that he would attempt to bring the report to the full senate for a vote on saturday .
in response , our lobbyist in sacramento spoke to a leader of the republican party in the senate ( ross johnson ) , and persuaded johson to negotiate the date of the vote with burton and dunn .
she was successful - - - johnson went to burton and got him and dunn to agree not to vote on the report until the senate returned from its recess on august 20 th .
if the senate returns early , it could vote prior to the 20 th , but the likelihood of that happening appears low at this time .
the budget :
the senate passed the budget at about 1 am sunday morning .
the senate adjourned for recess after the vote and is not expected to return until august 20 th .
that leaves the assembly alone in sacramento to do its part regarding the budget and the edison mou .
the assembly
in short , leadership within the assembly is extremely weak and without much influence over its own party - - the democrats .
the speaker is viewed as having botched both the budget and the energy issue .
unable to do a deal , the assembly recessed saturday night and has not reconvened .
it has therefore not taken the votes needed to finish up with the budget .
the assembly also has not passed its version of an edison mou , which it says it intends to do .
best information we have right now is that the assembly does not plan to go back into session until tuesday morning .
late saturday night , the assembly speaker released yet another version of his edison mou ( ab 82 xx ) , but it does not appear at this time that he has enough votes among assembly democrats to pass it .
enron - - together with business customers - - opposes the version of 82 xx released on saturday night because it does not adequately ensure direct access .
best ,
jeff