california update 5 09 please contact kristin walsh 713 853 9510 britt whitman 713 345 4014 questions executive summary california bond inevitability davis faces even greater financial woes california creditor status debated court windfall profits tax bill sb lx ab 128 x passes senate vote davis expected sign california bond battle sb 31 x passed senate today simple majority vote initiating 90 day wait period revenue bonds issuance sources indicate contrary media reports possible referendum sb 31 x would unlikely harvey rosenfield produce within 90 days due insufficient funding reportedly would need raise 250 000 500 000 quickly sources believe likely harvey attempt set initiative later year 2002 davis financial woes beginning unclear whether governor davis truly able move money around within state budget cover power purchases august 13 4 billion bond amount authorized approximately 6 7 billion already spent power likely state spend remaining 6 7 billion power bonds even issued sources indicate long term contracts davis talks unsigned really place means state may still purchase majority power spot market complicates situation reported earlier explains republicans wanted wait davis disclose terms contracts authorizing bond issuance given lack contracts place appears bridge loan bonds inadequate state power purchases california creditor sources indicate lawyers members generator community reviewing california revenue bond bill sb 31 x unclear whether state california claims creditor appears time assembly wrote senator bowen language bill relies existing interpretation ab lx state gets paid utilities exact issue currently reviewed pg e bankruptcy case likely settle ongoing dispute legislatures utilities windfall profits tax according sources windfall profits tax bill sb lx still remains committee assembly unclear bill could brought vote tomorrow given house reviewed version bill sources indicate senate version sb lx yet referred assembly policy committee significant reconciliation process two bills must occur example unlike senate version assembly version reportedly set price cap based firm dollar amount instead leaves decision regulatory committee puc bond issuance passes senate officially authorized state likely able get bridge loan lenders however sources indicate bridge loan dead unless senate moves thursday