urgent - california update 2 / 16 negotiations between governor davis and california utilities may be faltering :
negotiations between governor gray davis and california ' s three major utilities appear to be taking a significant turn . sources report that the proposal by governor davis that was splashed in the press this morning is reported to have been rejected by pg & e , and socal ed . the proposal to purchase debt ridden utilities ' transmission lines was outlined in sb 33 x
the governor is expected to revise sb 33 x and approach the utilities with the following new terms :
1 ) raise the states transmission pruchase bid from $ 3 . 5 billion to roughly $ 6 billion
2 ) finance a $ 9 to $ 12 billion payment for the utilities ' under - collected debt to generators
3 ) allow the utilities to issue 15 year bonds to repay the state , resulting in surcharges on consumer utility bills .
consumer groups led by harvey rosenfield could provide strong opposition to davis ' plan and it is possible rosenfield could launch a referendum to kill the bill .
davis is scheduled to give a press conference today and 2 : 00 pm ( pac . time ) to comment on negotiations .
urgent - california update 2 / 16
negotiations between governor davis and california utilities may be faltering :
negotiations between governor gray davis and california ' s three major utilities appear to be taking a significant turn . sources report that the proposal by governor davis that was splashed in the press this morning is reported to have been rejected by pg & e , and socal ed . the proposal to purchase debt ridden utilities ' transmission lines was outlined in sb 33 x
the governor is expected to revise sb 33 x and approach the utilities with the following new terms :
1 ) raise the states transmission pruchase bid from $ 3 . 5 billion to roughly $ 6 billion
2 ) finance a $ 9 to $ 12 billion payment for the utilities ' under - collected debt to generators
3 ) allow the utilities to issue 15 year bonds to repay the state , resulting in surcharges on consumer utility bills .
consumer groups led by harvey rosenfield could provide strong opposition to davis ' plan and it is possible rosenfield could launch a referendum to kill the bill .
davis is scheduled to give a press conference today and 2 : 00 pm ( pac . time ) to comment on negotiations .