california update ca power market awaits bailout california power watchers hoping results early week marathon government industry negotiations principals last tuesday night marathon session expected meet video conference weekend review solutions developed staff working groups met end week see daily gpi jan 11 west coast week ended emergency legislation starting dash state capital governor holding 90 minute meeting two neighboring western governors piece together regional strategy joint energy conversation supply cooperation friday gov gray davis said ferc fails act sure congress take legislation stabilize power prices throughout country least give governors option opt stabilized pricing mechanism sen diane feinstein ca announced working bill offered later month would allow energy secretary impose price caps davis indicated federal officials would working weekend expects something announce early next week long term expects solve problem next 90 days six months hopefully whole episode distant memory also friday standard poor assigned investment grade triple b plus corporate credit rating subsidiary pg e energy trading holdings said subsidiaries gas transmission northwest pe g generating also would maintain investment grade rating based entity creditworthiness economic self sufficiency units would insulated downgrades parent pg e corp utility subsidiary pacific gas electric action came pg e suspended fourth quarter dividend announced cutting staff services see daily gpi jan 12 following meeting sacramento friday gov davis counterparts oregon john kitzhaber washington gary locke announced feb 2 western governors meeting would held portland push western region wholesale power price cap region wide push state conserve energy finally share energy supplies seasonal basis fellow democrats washington gov locke oregon gov kitzhaber expressed strong support gov davis efforts pushed solutions ferc extraordinarily important partisan struggle west coast democratic governors inland governors mostly republican said kitzhaber noting solutions come new generation conservation play major role visiting governors said strongly support state california becoming purchaser long term power reselling utilities banking fact state creditworthiness gain much better prices cash strapped near bankrupt two major utilities southern california edison co pacific gas electric co lower house assembly state legislature cranked dozen proposed laws including one completely restructure oversight boards state chartered grid operator cal iso wholesale spot power market cal px large stakeholder panels 26 30 industry representatives small units three people appointed governor another proposed law would prevent state three major private sector utilities including two near bankruptcy sell remaining generation units comprised mostly nuclear hydroelectric interests state coal fired plants gov davis indicated expects state lawmakers pass bill wednesday establishing three person boards members iso panel head state three principal agencies overseeing electricity california public utilities commission california energy commission electricity oversight board two three headed davis appointees near rolling blackouts thursday caused storm driven wave surges curtailed power production coastal plants eliminated weekend stepped conservation restoration major units pg e diablo canyon nuclear generating plant grid operator called biggest single day lowering demand ever experienced week cal iso expects 5 000 6 000 mw service last week back online improving chance avoiding power emergencies salvaging state system last week critical stage three california water resources department operates massive north south network aqueducts purchased 1 200 mw state using state creditworthiness get around cal iso financial problems done lower profile basis past water resources department acted quasi state power authority cal iso coo kellan fluckiger said market participants also providing sort intermediary financing light credit concerns surrounding iso utilities water department also contributed supply crunch routinely shutting heavy electricity consuming pumps move massive quantities water around state