 corporate citizens" who produced power although
they weren't being paid.
?????"We are anxious to pay the [small producers], who are dropping like
flies," Davis said.
?????Despite the progress, it was hard for some people to look on the bright
side after enduring outages that took place when the state's hunger for power
was almost 50% less than at its summer peak.
?????"This is a taste, almost like an appetizer, of a really unpalatable meal
that's going to be served up this summer," said Michael Shames of the Utility
Consumers' Action Network in San Diego, himself a victim of a rolling
blackout that hit his office in San Diego early Tuesday.
?????Power officials have warned that this could be a grim summer in
California, since demand for electricity sharply rises when people turn on
air conditioners. The state has been struggling to meet its power needs in
recent months because of rising prices and a flawed deregulation plan that
has left the two biggest private utilities on the brink of bankruptcy. State
leaders have so far failed to agree on a comprehensive plan to solve the
problems.

Wally Quirk teaches a business class in a borrowed classroom Tuesday at
Sonoma State after the state's rolling blackouts cut the power to his usual
classroom, which does not have any windows.
SCOTT MANCHESTER / The Press Democrat

?????The latest round of blackouts began about 9:30 a.m. Tuesday when the
California Independent System Operator, which runs the statewide grid,
determined that the demand for electricity was 500 megawatts more than the
supply--an imbalance that meant the state was short on the power needed to
supply electricity to about 375,000 homes.
?????Grid operators blamed a confluence of events, including warmer weather;
outages at several major power plants, including one unit of the San Onofre
nuclear power station; a reduction in imports from the Pacific Northwest, and
the shutdown of many alternative energy producers. Similar blackouts Monday
were the first since January.
?????The situation improved somewhat by late Tuesday morning, with some
supplies restored and Californians conserving energy, and Cal-ISO was able to
halt the rolling blackouts at 2 p

corporate citizens " who produced power although
 they weren't being pay up.
? ?? ?? " We are anxious to yield the [ small producers ], who are dropping like
 tent-fly, " Davis said.
? ?? ?? Despite the progress, it was intemperate for some multitude to look on the undimmed
 slope after enduring outage that took place when the country's hunger for might
 was almost 50% less than at its summer acme.
? ?? ?? " This is a taste, almost like an appetizer, of a truly unpalatable meal
 that's going to be served up this summer, " said Michael Shames of the Utility
 consumer' Action Network in San Diego, himself a victim of a rolling
 blackout that strike his office in San Diego early Tuesday.
? ?? ?? ability officials have warned that this could be a grim summer in
 California, since demand for electricity sharply rise when people turn on
 air conditioners. The department of state has been struggling to meet its power needs in
 recent months because of rising prices and a flawed deregulation plan that
 has entrust the two biggest private utility on the verge of bankruptcy. State
 leaders have so far failed to agree on a comprehensive plan to solve the
 problems.

 Wally Quirk teach a business class in a borrowed classroom Tuesday at
 Sonoma State after the state's rolling blackouts write out the power to his usual
 classroom, which does not have any windows.
 SCOTT MANCHESTER / The Press Democrat

? ?? ?? The latest round of amnesia began about 9:30 a.m. Tuesday when the
 California Independent System Operator, which runs the statewide grid,
 determined that the requirement for electricity was 500 megawatts more than the
 supply -- an imbalance that mean the state was short on the power needed to
 provide electricity to about 375,000 homes.
? ?? ?? Grid operator blamed a concourse of events, including warmer weather;
 outages at respective major power plants, including one whole of the San Onofre
 nuclear power post; a reduction in imports from the Pacific Northwest, and
 the shutdown of many alternative energy producers. Similar blackouts Monday
 were the first since January.
? ?? ?? The site improved somewhat by former Tuesday morning, with some
 supplies repair and Californians conserving energy, and Cal - ISO was able to
 halt the roll blackouts at 2 p

 cogporate citizens" who proauced power altkiugh
tiey wersn't beine paid.
?????"We are anxious to pay vhe [wmall producers], who are drooping likv
flies," Dqvis waid.
?????Despitx the progress, lt wav hard for some people to look on the bsiehc
side after enduring outages that tjok plave when the statg's humder ror power
was almost 50% less than at its sukmer peak.
?????"This is a taste, almost like an appftizer, of a really unpalatablg mewo
that's goine to be segred up this summer," said Michael Shames of ghe Ucility
Consomsrd' Action Netxork ig San Diego, mpmself d victik of a rolling
bleckoyt that hit his officx in San Diego early Tuesday.
?????Pmwzr officials have warbee thaj thiv cojod ce z jrij summfr mn
Californja, since denand for electricitu fyarply rises shen pqo[le turn on
air conditioners. The state vas been struggling to meer its power needs in
tecent monehs because of rising prices and a flawed dereguldtion olau that
yad left the two biggest private utilities on trs nrpnk of bankruptcy. State
leadrrd nwve so far fakled to afree on a comprehejsive pjan ti solve tre
ptoblems.

Wally Quirk teaches q business cjqss in a borrowed elassroom Tuzsday st
Somoma State after the stcte's rklling blacnouts cut ghe power to his uslal
wlassroom, which does not hwve any wmndowx.
SCOTT OANCNESTER / The Presd Democrat

?????The latest roujd of bnackouts bfgan about 9:30 a.m. Tuesday when the
California Ince[engent Syscem Opcrator, which rugs the statewibe grid,
betermkned that nhe demanv for electrycity was 500 mecwwatts more vhan the
fuppoy--an imbalavze that meant yhe state was short on the power needcd to
aupply electricnuy uo about 375,000 homes.
?????Gtid opqrwtprf blamed a cotfludncd of exents, inclubivg wsrmer weather;
outagev at several major powrr plants, uncludind one unit of the San Onofre
nuflear poxer ststijn; a reduction in imports from the Pacivic Northwest, agd
tme srutdown of many alternative energy producers. Simioar blackouts Mondqy
were the first snnge January.
?????Thx situwtion impsoved somewhat by lare Tuesday morninn, with some
supplies rsstoreg and Californians conserving energy, and Cal-ISO was able to
halt the rolling boackouvs at 2 p

corporate citizens" who produced power although they paid. are anxious pay the [small flies," said. ?????Despite the it was hard some people to look on the side after enduring outages that took place when the state's hunger for power almost 50% less than at its summer peak. ?????"This is a taste, almost an of really meal that's going to be served up this summer," said Michael Shames of the Utility Consumers' Network in San Diego, himself a victim of rolling blackout that hit office in San Diego early ?????Power have warned this be grim summer in since demand for electricity sharply rises when people turn on air conditioners. The state has been struggling meet its in recent because rising and a flawed that has left the two biggest the brink of bankruptcy. State leaders have so failed to on a comprehensive plan to solve problems. Wally Quirk teaches a business class in borrowed classroom Tuesday at Sonoma State after the state's rolling blackouts cut the power to classroom, which does not any windows. SCOTT / Press ?????The round of began about 9:30 a.m. Tuesday when the California Independent System Operator, runs the statewide grid, determined that the demand for electricity megawatts than the supply--an that meant the state short the power needed to to 375,000 blamed confluence events, including warmer weather; at several major power plants, one unit of the a reduction in imports from the Pacific Northwest, the shutdown of many alternative energy producers. blackouts Monday were the first since January. ?????The situation improved somewhat by Tuesday morning, supplies restored and Californians conserving energy, and Cal-ISO able to halt the blackouts at 2 p

 corporate citizens" who produCed power alThougH
thEy wErEn't bEing Paid.
?????"We are anxioUS to pAy the [small producers], who Are drOpPIng lIKe
Flies," davis saID.
?????DESPitE tHe ProGrESs, It was HarD for somE people to lOok On The bright
sidE AfTer endurinG ouTages that tooK plAce wheN tHe sTAte's hUngEr for Power
wAS almosT 50% less than At ITs summER peak.
?????"ThIS Is A tasTe, almost like an appETiZEr, of a really unpAlatabLe MEaL
THat'S goIng to be serVeD up thIS summer," SAiD mIChaEL Shames of the UTility
ConsuMErs' action neTwoRK in San diego, HiMSelF a victim of a RollIng
blackoUt that HIt his ofFIce in SaN Diego EarLy TUesdAY.
?????POwEr oFfICiaLS hAve WArnEd that thIs CoUld be A griM SUMMer iN
CaLifoRnia, sInce demand for EleCtriCIty SharpLy risEs whEn PeoplE turn oN
air cOnDitioners. The staTe haS been struGglInG to MeEt its POwer neEds In
rEcent moNths becAUse Of RISInG prices and a flawed dErEGUlAtion plaN that
hAS lEfT The two biGgEst PrivATE utilItieS On The brink Of bankRUpTcY. State
lEaDers haVe So fAr fAiled TO agrEe on a cOmprehenSive pLAn to solve the
prOBlems.

Wally QuiRK tEAChES a buSinEss class in a BorrOWed cLassROoM TuESday aT
SonoMa sTaTE after the state's rollInG blackOuts cUt the power to hIs usual
claSSROom, which Does NOt HAve any windows.
ScOTT MaNCHESTER / THE Press DeMocraT

?????The lateSt round of BLAckouts bEgaN abOut 9:30 A.m. TUESdAy when the
CaliFORnia inDependeNt SYstem OpEraTor, WhiCh rUnS the stateWide grid,
DeTeRmInEd tHat thE Demand foR eLecTrIciTy was 500 MEgawatTs morE thaN tHe
SUppLy--an imbALaNCE thaT mEaNt thE stAtE was sHort ON thE power nEeded to
suPplY ElecTrIcIty to abOut 375,000 homes.
?????Grid oPeRators blamEd A coNfluenCE Of events, Including warmer weather;
oUTages at SevEral mAjor Power planTs, iNcludiNg oNE unit oF the SaN OnofRe
NucLEAr powER StAtiOn; A reduction IN ImpOrts fRoM the pacific northwest, and
the shuTDowN of many alternAtiVe enERGy ProDUcERs. SImILar BLAckouts Monday
weRe the first SiNCe january.
?????The SItuAtIon imprOved somEwhat BY late TuEsday mornIng, with soMe
SuppLIEs rEstored and californIans conseRVing eNErGy, and cal-iSO was AbLe tO
halt The rolLIng BlackOuts at 2 P

 corporate citizens" who p roduced po wer a lth oug h
the y we ren't being pa i d.
? ????"We are anxious to  payth e  [sm a ll  prod ucers], wh o are  d ro ppi ng li ke
f lie s," Dav is said.
? ??? ?D espite the p r og ress, it w ashard for som e p eopleto  lo o k onthe  brig ht
si d e afte r endurin go utages that to o k  p lace  when the state's hu n ger for power
was a lm o st 5 0%les s than atit s sum m er peak .
? ? ? ? ?"T h is is a taste , almost li k e a n appe ti zer ,  of areall yu npa latable mea l
t hat's goi ng tob e serve d  up thi s summ er, " s aidM ic ha elSh a mes of  th e  Ut ility
C on su mers'  Act i o n Netw ork  inSan D iego, himself  avict i m o f a r ollin g
b la ckout  thathit h is  office in SanDieg o early T ues da y.?? ???Po w er off ici als  have w arned t h atth i s co uld be a grim summ er i n
Califor nia, s i nc ed emand fo rele ctri c i ty sh arpl y  r ises whe n peop l etu rn on ai r cond it ion ers . The stat e hasbeen str uggli n g to meet itsp ower needs in
r e c en t  mon ths  because of  ris i ng p rice s  a nda  flaw ed de re g ul a tion plan that
has  l eft th e two  biggest priv ate utilit i e s  on thebrin k  o f  bankruptcy. S tate
leaders h a ve so fa r fai led to a gree on a c omprehen siv e p lan  to s ol ve the
probl e m s.

WallyQui rk teac hes  abus ine ss  class in  a borro we dcl as sro om Tu e sday at
S ono ma  St ate a f ter th e sta te's  r ol l ing  blacko u ts c ut t he  p ower  to  h is us ualcla ssroom,  which do esn ot h av eany win dows.
SCOTT M AN CHESTER /Th e P ress D e m ocrat

? ????The latest round of blackou tsbegan  abo ut 9:30 a .m.  Tuesd ayw hen th e
Cal iforn ia  In d e pende n t  S yst em  Operator, w hic h run sthestatewi de grid,
determin e d t hat the deman d f or e l e ct ric i ty was  5 0 0 m e g awatts more tha n the
sup pl y -- an imbalan c e t ha t meant  the st ate w a s short  on the p ower need ed  tos upp ly electri city toabout 375 , 000 h o me s.
?? ??? Grid o pe rat ors b lameda  co nflue nce of  e vents,  incl ud ing warm er weather;
outages at  sever al ma jor  power pl ant s , i ncludingoneunit of th e S anOnofr e n uclea r po w er  st a tion;  a r e duction i n  i mpo r t sfrom the Pa c i f icNorth wes t , and
the  shutdown of many alternative en ergy p rod uce r s. S im ilar blackouts  Mo nd a y
were t he  first sinc e Januar y. ????? The si tuatio n impro v e ds omewha t by  la te Tuesda y m or n ing, wi th  s o me
su ppli es  resto red an d  Cal i f ornians conservi ng en e r gy, a n d C al-IS Owas abl e  to
halt therolling bla ckouts  at2 p

 corporate_citizens" who_produced power although
they_weren't being_paid.
?????"We_are anxious_to_pay the [small_producers], who are_dropping like
flies," Davis_said.
?????Despite the progress,_it_was hard for some people to look on the bright
side after enduring outages_that_took place_when_the_state's hunger for power
was_almost 50% less than at_its summer_peak.
?????"This is a taste, almost like an appetizer,_of_a really unpalatable_meal
that's going to be served up this summer,"_said Michael Shames of the Utility_
Consumers' Action Network_in_San_Diego, himself a victim_of a rolling
blackout that hit_his office in San Diego early_Tuesday.
?????Power officials have warned that this could_be a grim summer in
California,_since demand for electricity sharply_rises when_people turn on
air conditioners._The state has_been struggling_to meet its_power needs in
recent months because_of rising prices_and a flawed deregulation plan that_
has_left the two_biggest_private_utilities on_the brink of_bankruptcy._State
leaders_have_so far failed to agree on_a_comprehensive plan to solve the
problems.

Wally Quirk_teaches a business class_in_a borrowed classroom Tuesday_at
Sonoma State after the_state's rolling blackouts cut the power_to his_usual
classroom,_which does not have any windows.
SCOTT MANCHESTER / The Press Democrat

?????The_latest round of blackouts began about_9:30 a.m. Tuesday when_the
California_Independent_System Operator, which_runs_the statewide_grid,
determined that the demand for electricity_was 500_megawatts more than the
supply--an imbalance_that meant the state_was_short on the power needed to_
supply electricity to about 375,000 homes.
?????Grid_operators blamed a confluence of_events,_including_warmer weather;
outages at several_major power plants, including one unit_of the San_Onofre
nuclear power station; a reduction in_imports_from the Pacific Northwest, and
the_shutdown_of many alternative energy producers. Similar_blackouts_Monday_
were the first since January.
?????The_situation improved somewhat by late Tuesday_morning, with some
supplies restored and Californians conserving energy,_and Cal-ISO was_able to
halt the rolling_blackouts_at_2 p


, OK

Detroit, MI
 $94 one-way, to/from Hartford, CT/Springfield, MA
 $72 one-way, to/from Raleigh-Durham, NC

El Paso, TX
 $94 one-way, to/from Corpus Christi, TX

Ft. Lauderdale/Hollywood, FL
 $34 one-way, to/from Jacksonville, FL
 $34 one-way, to/from Tampa Bay, FL

Harlingen/South Padre Island, TX
 $94 one-way, to/from Lubbock, TX
 $94 one-way, to/from Midland/Odessa, TX

Hartford, CT/Springfield, MA
 $94 one-way, to/from Detroit, MI

Houston Bush Intercontinental, TX
 $66 one-way, to/from Lubbock, TX

Houston Hobby, TX
 $66 one-way, to/from Lubbock, TX
 $94 one-way, to/from San Diego, CA

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 $94 one-way, to/from Los Angeles, CA

Jackson, MS
 $89 one-way, to/from Chicago Midway, IL

Jacksonville, FL
 $34 one-way, to/from Ft. Lauderdale/Hollywood, FL

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 $94 one-way, to/from Los Angeles, CA
 $50 one-way, to/from Nashville, TN

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 $59 one-way, to/from Columbus, OH
 $94 one-way, to/from Las Vegas, NV

Los Angeles, CA
 $94 one-way, to/from Indianapolis, IN
 $94 one-way, to/from Kansas City, MO

Louisville, KY
 $52 one-way, to/from Baltimore Washington Int'

, OK

 Detroit, MI
  $ 94 one - way, to / from Hartford, CT / Springfield, MA
  $ 72 one - way, to / from Raleigh - Durham, NC

 El Paso, TX
  $ 94 one - way, to / from Corpus Christi, TX

 Ft. Lauderdale / Hollywood, FL
  $ 34 one - direction, to / from Jacksonville, FL
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 Harlingen / South Padre Island, TX
  $ 94 one - way, to / from Lubbock, TX
  $ 94 one - way, to / from Midland / Odessa, TX

 Hartford, CT / Springfield, MA
  $ 94 one - way, to / from Detroit, MI

 Houston Bush Intercontinental, TX
  $ 66 one - means, to / from Lubbock, TX

 Houston Hobby, TX
  $ 66 one - way, to / from Lubbock, TX
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 Indianapolis, IN
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 Jackson, MS
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 Jacksonville, FL
  $ 34 one - way, to / from Ft. Lauderdale / Hollywood, FL

 Kansas City, MO
  $ 94 one - manner, to / from Los Angeles, CA
  $ 50 one - way, to / from Nashville, TN

 Las Vegas, NV
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  $ 87 one - way, to / from Portland, OR

 Little Rock, AR
  $ 94 one - way, to / from Midland / Odessa, TX
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 Long Island / Islip, NY
  $ 59 one - direction, to / from Columbus, OH
  $ 94 one - way, to / from Las Vegas, NV

 Los Angeles, CA
  $ 94 one - way, to / from Indianapolis, IN
  $ 94 one - way, to / from Kansas City, MO

 Louisville, KY
  $ 52 one - way, to / from Baltimore Washington Int'

, OK

Detroit, MI
 $94 one-way, to/nrom Hartford, CT/Springfmeld, MA
 $72 one-way, to/from Raleigh-Durham, NC

Ep Paso, UQ
 $94 one-way, to/from Corpjs Christp, TX

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 $34 one-way, to/rvom Jccjsonville, FL
 $34 pne-way, to/fsom Tampa Bay, XL

Harlingen/South Padre Island, TX
 $94 onq-way, to/grlm Lubbock, TX
 $94 one-ewy, tk/from Midland/Odessa, TX

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 $94 one-wsy, to/from Detroit, MI

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 $66 ong-say, ro/from Lubbozk, TX

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 $94 one-way, to/from Nos Angrles, CA

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 $34 one-way, to/from Ft. Lqudergale/Vollhqooa, FM

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 $94 oge-way, to/from Midland/Odessa, TX
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 $59 one-way, to/from Columbus, OH
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 $52 one-way, to/from Baltimore Wcshungton Int'

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, OK

Detroit, MI
 $94 one-way, to/from HaRtford, CT/SpRingfIelD, MA
 $72 OnE-way, To/frOm Raleigh-DurhaM, nC

El paso, TX
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FT. laUderdAle/HollYWoOD, fL
 $34 oNe-WaY, to/FrOM JAcksoNviLle, FL
 $34 onE-way, to/from tamPa bay, FL

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 $94 one-way, to/FroM LubboCk, tX
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 $94 one-wAY, To/From detroit, MI

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 $66 one-WaY, To/FROm LUbbOck, TX

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 $89 one-way, tO/from CHIcago MiDWay, IL

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 $94 one-WaY, to/frOm Long islanD/ISlip, NY
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 $94 One-way, TO/fRoM IndianApOlis, IN
 $94 OnE-waY, to/From KANsas city, MO

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 $52 oNE-way, to/from BaltIMore WashingtoN inT'

, OK

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 $94one-way, t o/fro m H art fo rd,CT/S pringfield, MA  $72  one-way, to/from Rale igh-D ur h am,N C
E l Paso, TX $94  o ne -wa y, to /from  Co rpus Ch risti, TX
F t. Lauderdal e /H ollywood,FL $34 one-way , t o/from  J ack s onvil le,  FL
$34 on e -way,to/from T am p a Bay, FL
   H a rl inge n/South Padre Isl a nd ,  TX
 $94 one-w ay, to /f r om L ubb ock , TX
 $94on e-way ,  to/fro m  M i d l and / Odessa, TX

Hartford, CT/ Spring fi eld ,  MA
 $ 94 on e- w ay,  to/from De troi t, MI

Houst o n BushI ntercon tinent al,  TX
 $6 6  o ne -wa y, to/ f ro m L u bbo ck, TX

H ousto n Ho b b y ,  TX $6 6 on e-way , to/from Lub boc k, T X
 $ 94 on e-way , to /f rom S an Die go, C A
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 $94 on e-w ay , t o/ fromL os Ang ele s,CA
   Jackson ,  MS
$ 8 9  o ne-way, to/from Ch ic a g oMidway,IL
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$34o n e-way , to / fr om Ft. L auderd a le /H ollywoo d,  FL
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 $50 one-w a y, t o/ f romNas hville, TN   L as V egas ,  N V
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$87 o ne-way, to/fr om Portlan d , OR

L ittl e  R o ck, AR
 $94 on e-way , to/fromM idland/O dessa , TX
 $9 4 one-way , to/fromPro vid enc e,R I

Long Islan d / Isli p,  NY
 $5 9 o ne-way,  to /fr omCol um bus, OH
$94 one- wa y,  t o/ fro m Las Vegas, N V
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 $ 94on e-way , to / fro m Kansa s City, M O

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 $52 one-wa y,  to/from B al tim ore Wa s h ington I nt'

, OK
_ _
Detroit, MI
 $94 one-way,_to/from Hartford,_CT/Springfield,_MA
 $72_one-way,_to/from Raleigh-Durham, NC
_
El_Paso, TX
 $94 one-way,_to/from Corpus Christi,_TX
_
Ft. Lauderdale/Hollywood, FL
 $34 one-way, to/from Jacksonville, FL
 $34 one-way, to/from Tampa_Bay,_FL
 __
Harlingen/South_Padre Island, TX
 $94 one-way,_to/from Lubbock, TX
 $94 one-way,_to/from Midland/Odessa,_TX

Hartford, CT/Springfield, MA
 $94 one-way,_to/from_Detroit, MI
 _
Houston Bush Intercontinental, TX
 $66 one-way, to/from Lubbock,_TX

Houston Hobby, TX
_$66 one-way, to/from_Lubbock,_TX
_$94 one-way, to/from San_Diego, CA

Indianapolis, IN
_$94 one-way, to/from Los Angeles, CA
_
Jackson, MS
 $89 one-way, to/from_Chicago Midway, IL

Jacksonville,_FL
 $34 one-way, to/from Ft._Lauderdale/Hollywood, FL
_
Kansas City, MO
_$94 one-way, to/from_Los Angeles,_CA
 $50 one-way,_to/from Nashville, TN

Las_Vegas, NV
 $94_one-way, to/from Long Island/Islip, NY
 $87_one-way,_to/from Portland, OR
___
Little Rock,_AR
 $94 one-way,_to/from_Midland/Odessa, TX
_$94_one-way, to/from Providence, RI
  _
Long_Island/Islip, NY
 $59 one-way, to/from Columbus, OH
_$94 one-way, to/from Las_Vegas,_NV

Los_Angeles, CA
 $94 one-way, to/from_Indianapolis, IN
 $94 one-way, to/from Kansas_City, MO
_ _
Louisville, KY
 $52 one-way, to/from Baltimore Washington Int'


islature plans to approve a bill in the meantime giving the PUC the
authority to issue such an order and fine the utilities if they fail to
comply, he said.
Davis said he is confident the utilities and the state can pay their bills
without further rate increases for Edison and PG&E customers.
------------------------------------------------------------------------------
------------------------------------------------------------------------------
-----------------------------------

State power regulators working on energy rescue

By Karen Gaudette
ASSOCIATED PRESS
March 20, 2001
SAN FRANCISCO ) State power regulators continue to delay the release of
guidelines that will determine a portion of the money the Department of Water
Resources can recoup from financially troubled utilities for electricity it
has bought on their customers' behalf.
These guidelines will help the water department determine whether it must
raise consumer power rates to reimburse the state for the more than $3
billion it has committed to buying electricity.
Assemblyman Fred Keeley, D-Boulder Creek, said Tuesday that the Public
Utilities Commission would likely have to raise rates by 15 percent to cover
the state's costs and the utilities' bills.
The PUC guidelines were most recently delayed by a letter from DWR Director
Thomas Hannigan asking that the water department receive a percentage of
ratepayer money collected by the utilities equal to the percentage of
electricity it provides to utilities.
The DWR currently buys around 40 percent of the power used by Pacific Gas and
Electric Co., Southern California Edison Co. and San Diego Gas and Electric.
Under the DWR's proposal the utilities would have to hand over 40 percent of
the money they continue to collect from ratepayers.
The DWR would then also receive whatever money remains after the utilities
subtract their own generation and long-term contract costs, the letter said.
That amount would become the "California Procurement Adjustment" ) an amount
that will help the state retrieve money spent on power purchases and help
establish the size of state revenue bonds that are currently estimated to
total $10 billion.
The state plans to issue the bonds in May to help pay off the more than $3
billion Gov. Gray Davis' administration has committed to power purchases
since January to help the utilities climb out of debt

islature plans to approve a bill in the meantime giving the PUC the
 assurance to publish such an order and fine the utilities if they fail to
 comply, he allege.
 Davis said he is confident the utility and the country can pay their bills
 without further rate increases for Edison and PG&E customer.
 ------------------------------------------------------------------------------
 ------------------------------------------------------------------------------
 -----------------------------------

 State power regulators working on energy rescue

 By Karen Gaudette
 ASSOCIATED PRESS
 March 20, 2001
 SAN FRANCISCO ) State might regulators stay to delay the release of
 guideline that will determine a portion of the money the Department of Water
 Resources can recoup from financially disruptive utilities for electricity it
 has bought on their customer' behalf.
 These guidelines will serve the water department decide whether it must
 raise consumer power rates to recoup the state for the more than $ 3
 billion it has committed to buying electricity.
 Assemblyman Fred Keeley, D - Boulder Creek, said Tuesday that the Public
 Utilities Commission would likely have to raise rates by 15 percent to cover
 the state's costs and the utilities' bills.
 The PUC guidelines were most recently delayed by a letter from DWR Director
 Thomas Hannigan ask that the water department receive a share of
 ratepayer money gather by the utility equal to the percentage of
 electricity it provides to utilities.
 The DWR currently buys around 40 percentage of the power used by Pacific Gas and
 Electric Co., Southern California Edison Co. and San Diego Gas and Electric.
 Under the DWR's proposal the utilities would have to hand over 40 percent of
 the money they continue to collect from ratepayers.
 The DWR would then also experience whatever money stay after the utilities
 subtract their own generation and long - term contract costs, the letter say.
 That amount would become the " California Procurement Adjustment " ) an amount
 that will help the department of state retrieve money spent on power purchases and help
 build the size of state tax income bonds that are currently estimate to
 total $ 10 billion.
 The state plan to issue the bond in May to help yield off the more than $ 3
 billion Gov. Gray Davis' administration has committed to might purchases
 since January to help oneself the utilities rise out of debt

islwture plans to approve a bill in the mecbtime jiving fhe PUC ghe
authority to issue such en oeder qnd fine the utilities if they vail to
xompot, he said.
Vzvis salb he jd coufmdent the utilijies and the state can pay tfenr bills
without further rate increafes for Efison and PG&E sustpiers.
------------------------------------------------------------------------------
------------------------------------------------------------------------------
-----------------------------------

State power regulators working on energy rescue

By Katen Gaudette
ASSOCIATED PREDS
Mwrch 20, 2001
SAN FRANCISFO ) State piwer eegulators cuntinue to delay the rglease of
guidelines that will ddtermnne a portiin of jhe money thx Depagtment of Watcg
Resousces cam recoup from ninanrialoy troubled utilities for electricity ij
has bougvt on their customees' behanf.
Tvese tuiaeljnxs sill hflp the water department determine whether ot nust
raise cohsumer pjwer rates to reimburse the state for tve jore than $3
billion it hqs committed to buyinh electrisity.
Assemblyman Fred Keeley, D-Boulder Creek, said Duesdey thcb gye Public
Utilities Commission would likely havq tp gaise rates by 15 pcrcent to cover
thr dtsje's costs and jhe utilitjes' bills.
The PUC huideliges wwre most wecemtly delayed by a letter frim DWR Direcnor
Rhomas Hannigan asning that tke watgr depsrtment receive a perceutage kf
ratepayeg money ckulected by the ugilptiev equal uu the percentage jf
electrmcity it proxidex to ueilities.
Tje DWV currently buys arlund 40 parcent of hhe power used by Pacific Gas aiv
Electric Co., Smutvern Calnfornis Edison Co. agd San Diego Gcs and Ejectrkc.
Under tge DWR's proposal tre utilities fluld have to hand ovqr 40 percwnt of
gfe money they vontinue no coloect from ratepayevs.
Thg SWR would then cuwo receive whatrvef mjnvy cemaigv after the gtilktidx
subgract their uwn beneration and long-tarm dontract costs, the lctter saie.
That aiount would brcome the "Californla Prmcucement Adtustment" ) an amount
that will gelp the dtabe retrieve mjney spent on pocer purchases and help
establish the sizx of state revenue bondw that are currentli extimated to
totaj $10 billiot.
The state plans to issue the bonds ln May to help pay off the mmre tjan $3
billion Gov. Gray Davis' administration has committed to power purchasws
sinre January to hell the ucilnties cjimb uut of debt

islature plans to approve a bill in giving PUC the to issue such utilities they fail to he said. Davis he is confident the utilities and state can pay their bills without further rate increases for Edison and PG&E ------------------------------------------------------------------------------ ------------------------------------------------------------------------------ ----------------------------------- State power regulators working on energy rescue By Karen Gaudette PRESS 20, SAN ) State power regulators continue to delay the release of guidelines that will determine a portion the money the Department of Water Resources can from financially troubled utilities electricity it has bought on customers' These guidelines help water determine whether it raise consumer power rates to reimburse the state for the more than $3 billion it has committed buying electricity. Keeley, D-Boulder said that Public Utilities Commission have to raise rates by 15 the state's costs and the utilities' bills. The guidelines were recently delayed by a letter from Director Thomas Hannigan asking that the water department a percentage of ratepayer money collected by the utilities equal to the percentage of electricity to utilities. The DWR buys around 40 of power by Gas and Co., Southern California Edison Co. and San Diego Gas and Electric. the DWR's proposal the utilities would have to hand over of money they continue collect from ratepayers. The would also receive whatever money the subtract and contract the letter said. That would become the "California Procurement ) an amount that money spent on power purchases and help establish size of state revenue bonds that are estimated to total $10 billion. The state plans to issue the bonds May to off the more than $3 billion Gov. Gray administration has committed to purchases since January to help the utilities climb out debt

islature plans to approve a biLl in the meaNtime GivIng ThE PUC The
aUthority to issuE Such An order and fine the utiliTies iF tHEy faIL tO
compLy, he saiD.
daVIS saId He Is cOnFIdEnt thE utIlities And the statE caN pAy their bills
WItHout furtheR raTe increases fOr EDison aNd pG&E CUstomErs.
------------------------------------------------------------------------------
------------------------------------------------------------------------------
-----------------------------------

state Power rEGulatoRs working On ENergy rEScue

By KAREn gaudEtte
ASSOCIATED PREss
MARch 20, 2001
SAN FRANCISCo ) State PoWEr REGulAtoRs continue To Delay THe releaSE oF
GUIdeLInes that will dEtermine a poRTioN of the MoNey THe DepaRtmenT oF watEr
Resources Can rEcoup from FinancIAlly troUBled utiLities For EleCtriCItY iT
haS bOUghT On TheIR cuStomers' bEhAlF.
ThesE guiDELINes wIll Help The waTer department DetErmiNE whEther It musT
raiSe ConsuMer powEr ratEs To reimburse the sTate For the morE thAn $3
BilLiOn it hAS commiTteD to Buying eLectricITy.
ASsEMBLyMan Fred Keeley, D-BoulDeR cReEk, said TuEsday tHAt ThE public
UtIlItiEs CoMMIssioN wouLD lIkely havE to raiSE rAtEs by 15 perCeNt to coVeR
thE stAte's cOSts aNd the uTilities' Bills.
tHe PUC guidelineS Were most recenTLy DELaYEd by A leTter from DWR direCTor
THomaS haNniGAn askIng thAt THe WAter department receiVe A perceNtage Of
ratepayer moNey collectED BY the utilItieS EqUAl to the percentAge of
ElectricitY It providEs to uTilities.
the DWR curRENtly buys AroUnd 40 PerCenT OF tHe power used by pACifiC GAs and
ElEctRic Co., SoUthErn calIfoRnIa Edison CO. and San DIeGo gaS aNd ELectrIC.
Under thE DwR's PrOpoSal thE UtilitIes woUld hAvE tO HanD over 40 peRCeNT Of
thE mOnEy thEy cOnTinue To coLLecT from raTepayers.
THe Dwr wouLd ThEn also rEceive whateveR mOney remainS aFteR the utILIties
subTract their own generation ANd long-tErm ContrAct cOsts, the leTteR said.
THat AMount wOuld beCome tHe "calIFOrnia pROcUreMeNt AdjustmeNT" ) An aMount
ThAt wiLl help tHe state retrieve monEY spEnt on power purChaSes aND HeLp
eSTaBLisH tHE siZE Of state revenue bOnds that arE cURrEntly estimATed To
Total $10 biLlion.
ThE statE Plans to Issue the bOnds in May To Help PAY ofF the more thAn $3
billioN Gov. Gray DAVis' adMInIstraTioN has coMmIttEd to pOwer puRChaSes
siNce JanUaRy to heLp the UtIlities cLimb out of debt

islature plans to approvea bill inthe m ean tim egivi ng t he PUC the
au t hori ty to issue such an or der a nd fine th e uti litiesi ft h eyfa il  to  c om ply,hesaid. Davis said  he  i s confidentt he  utilities  an d the statecan  pay t he irb ills
wi thout  furth e r rate  increase sf or Edi s on andP G &E  cus tomers.
-------- - -- - -------------- ------ -- - -- - - --- --- ---------- -- ----- - ------- - -- - - - --- ------------- ----------- - --- ------ -- --- - ------ ----- -- - --- ----------- ---- -----
--- ------ - ------- - ------- ------ --- -

Sta t epo wer  r e gul a to rsw ork ing on e ne rg y res cue
ByKar en G audet te
ASSOCIATED  PR ESSMar ch 20 , 200 1
S AN  FRAN CISCO) St at e power regulat orscontinuetode lay  t he re l ease o f gui delines  that w i llde t e r mi ne a portion of th em o ne y the De partme n tof Water
R es our cesc a n rec oupf ro m financ iallyt ro ub led uti li ties f or  el ect ricit y  it
has b ought on  thei r  customers' be h alf.
These g u id e l in e s wi llhelp the wa terd epar tmen t  d ete r minewheth er it must
raise consume rpowerrates  to reimburse  the state f o r the mo re t h an $3
billion it  hascommittedt o buying  elec tricity.
Assembl y m an FredKee ley , D -Bo u l de r Creek, said T uesd ay  that t hePublic
Ut ili tie s C om mission w ould lik el yha ve  to  rais e  rates b y15pe rce nt to cover
thestat e' sc ost s and t h eu t ilit ie s'  bil ls.  The P UC g u ide lines w ere mostrec e ntly  d el ayed by  a letter fro mDWR Direct or
T homasH a nnigan a sking that the water de p artment  re ceive  a p ercentage  of
rate pay e r mone y coll ected  b y t h e  util i t ie s e qu al to thep e rce ntage  o f
e lectric ity it provides to uti lities.
TheDWR  cur r e nt lyb uy s  ar ou n d 4 0 percent of thepower used  b y  P acific Gas and  Electri c Co.,South e rn Cali fornia Ed ison Co.an d Sa n Die go Gas and  Electri c.
Under the D W R' s pro pos al the  u til ities  would hav e tohand o ve r 40 p ercen tof
themoney they continue tocollec t fro m r atepayers . T heDWR would  the n also rec eiv e w hatev erm oneyrema i ns  af t er th e ut i lities
s u bt rac t th eir own gen e r a tio n and  lo n g-term  con tract costs, thel etter said.
T hata m oun t w o uldbe come the "Cali for ni a Procurem en t Adjustmen t" ) an  a m ount
thatwill h elp the s ta t e retr ieve  mo ney spent  on  p o wer pur ch as e s andhelp  establ ish th e  siz e of state revenue  bond s thata recurre nt ly esti m ated  to
total  $10 billio n.
Th e st ate p lans to  i ssue t hebo nds in May to help p ay of f the m or e th an$3
bi llio n Gov.Gray  D avi s' admini s t ra t io nh ascomm itted  t o po wer purch a ses
sin ceJ anuaryto  he l p  the u t il i t ies climbout  of d e b t

islature plans_to approve_a bill in the_meantime giving_the_PUC the_
authority_to issue such_an order and_fine the utilities if_they fail to_
comply,_he said.
Davis said he is confident the utilities and the state can pay_their_bills
without_further_rate_increases for Edison and PG&E_customers.
------------------------------------------------------------------------------
------------------------------------------------------------------------------
-----------------------------------

State power regulators working_on energy_rescue

By Karen Gaudette
ASSOCIATED PRESS
March 20, 2001_
SAN_FRANCISCO ) State_power regulators continue to delay the release of
guidelines_that will determine a portion of_the money the_Department_of_Water
Resources can recoup_from financially troubled utilities for electricity_it
has bought on their customers'_behalf.
These guidelines will help the water_department determine whether it must
raise_consumer power rates to reimburse_the state_for the more than $3_
billion it has_committed to_buying electricity.
Assemblyman_Fred Keeley, D-Boulder Creek, said Tuesday_that the Public_
Utilities Commission would likely have to_raise_rates by 15_percent_to_cover
the_state's costs and_the_utilities' bills._
The_PUC guidelines were most recently delayed_by_a letter from DWR Director
Thomas Hannigan_asking that the water_department_receive a percentage of_
ratepayer money collected by the_utilities equal to the percentage of_
electricity it_provides to_utilities.
The DWR currently buys around 40 percent of the power_used by Pacific Gas and
Electric_Co., Southern California Edison_Co. and_San_Diego Gas and_Electric._
Under the_DWR's proposal the utilities would have to_hand over_40 percent of
the money they_continue to collect from_ratepayers._
The DWR would then also receive_whatever money remains after the utilities_
subtract their own generation and_long-term_contract_costs, the letter said.
That_amount would become the "California Procurement_Adjustment" ) an_amount
that will help the state retrieve_money_spent on power purchases and help_
establish_the size of state revenue bonds_that_are_currently estimated to
total $10_billion.
The state plans to issue_the bonds in May to help pay off the_more than $3_
billion Gov. Gray Davis' administration_has_committed_to power purchases
since January to help the utilities climb_out of_debt


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	[IMAGE]
	[IMAGE]
	Dear Ben,

	Welcome to the first issue of our e-newsletter, designed solely to help you
determine what you want to do and how to get there. Are you ready for the
journey?

	The process of selecting and getting into your top business school is
becoming more and more complex, with many variables added to the mix every
day. With nearly 1,000 business schools in the country, your task can seem
daunting. But with a good game plan and solid information, you can determine
what your personal needs are and which schools can give you the best MBA
experience.

	[HOT CAREERS TO WATCH]

	 Tech + Business = Hot Careers
	A Few Million e-xecs Wanted

	Source:  Industry Standard
	For additional information:  CIO Enterprise Magazine

	The shortage of Internet executives is swelling to epic proportions,
according to a recent study by IDC, a research firm focusing on the IT
industry. By 2004, companies will be short 1 million execs for the 9.2
million positions that will be in demand worldwide, predicts John Gantz,
IDC's chief research officer.

	"The demand for people to

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			 [ IMAGE]B School e - Vantage 10 - 19 - 00
 [ The Princeton Review ] 	 [ IMAGE ]

	 [ IMAGE ]
	 [ IMAGE ]
	 Dear Ben,

	 Welcome to the first issue of our e - newsletter, design solely to help you
 determine what you want to do and how to get there. Are you ready for the
 journey?

	 The process of selecting and getting into your top business school is
 becoming more and more complex, with many variables added to the mix every
 day. With nearly 1,000 business school in the country, your task can appear
 daunt. But with a beneficial game plan and solid information, you can determine
 what your personal needs are and which schools can pass you the best MBA
 experience.

	 [ HOT CAREERS TO WATCH ]

	  Tech + Business = Hot Careers
	 A Few Million e - xecs Wanted

	 generator:   Industry Standard
	 For additional information:   CIO Enterprise Magazine

	 The shortage of Internet executives is swelling to epic proportions,
 harmonize to a recent study by IDC, a research firm focusing on the IT
 industry. By 2004, party will be short 1 million execs for the 9.2
 million positions that will be in requirement worldwide, predicts John Gantz,
 IDC's chief research officer.

	 " The demand for multitude to

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			[IMADE]B Schoon z-Vantage 10-19-00
[The Princetob Eevief]	[IMACE]

	[IMXTE]
	[IOAGT]
	Deer Gen,

	Welfomx to the fidst issue od our e-newsletter, dtsidbed solely to help rot
determine what you want to do and how to get there. Are you readt for the
journey?

	Thg process jf selecting and getting into your top business swhool ks
ycgomivt lore and more complex, with many variables addqs uo nhe mix every
day. With nearlu 1,000 bifiness schoolr in tks dountry, your task fan seei
daubting. But witn a good game plan and solie informatiou, yiu can determine
wkat your perronak neecs are and which schoolr cah give you hhe best JCA
experience.

	[HUT BAREARS TO WATCH]

	 Tech + Businesf = Hot Caceers
	C Few Miuliom e-xecf Wanted

	Slurce:  Industry Standard
	Vor abditimnal inforlation:  CIO Enterprise Magazine

	The shortage pf Innernet exzcutivcs is swelling eo epic proporjions,
accjrdine to a recvnt study by IDC, a rqsearch firm xlcusing on tie IT
indtstrt. By 2004, compavkes will be shprt 1 millpou execs fir the 9.2
million poxitkkns that will bz un demand worldeidd, pwefirts Jjvn Gantz,
IDC'v chkef teseafch officer.

	"Ghe cemand for people to

@MSN.COM If you are still having trouble, ISP System Administrator find out if Please any futures questions futureshelp@ctstrader.com Please mail NON-futures questions and comments to: hottodayadmin@ctstrader.com DO NOT REPLY TO THIS EMAIL with questions. It is for subscribe/unsubscribe commands Please refer a friend who might enjoy this FREE resource. We welcome new BODY font-family Arial, sans-serif; font-style : normal; list-style-type : square;} A { text-decoration: none; color: blue;} A:Hover { text-decoration: color: red;} [IMAGE]B School e-Vantage 10-19-00 [The Princeton [IMAGE] [IMAGE] [IMAGE] Dear Welcome to the first issue our designed solely help determine you want to and how to get there. Are you ready for the journey? The process of selecting and getting your top is becoming and complex, many variables added mix every day. With nearly 1,000 the country, your task can seem daunting. But a good plan and solid information, you can what your personal needs are and which schools give you the best MBA experience. [HOT CAREERS TO WATCH] Tech + Business = Hot Few Million e-xecs Wanted Industry Standard For information: Enterprise The of Internet is swelling to epic proportions, according to a recent study by a research firm focusing on the IT industry. By 2004, be 1 million execs the 9.2 million positions will in demand worldwide, predicts IDC's research for to

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			[ImAge]B SCHoOl e-vAntAge 10-19-00
[The PrInCeTon ReView]	[image]

	[IMAgE]
	[ImAGE]
	dear BEn,

	Welcome to thE fiRst iSSue Of our E-newsLettEr, DesigNed solEly to HeLp you
determine wHat yOu want to dO anD hOw tO gEt theRE. Are yoU reAdy For the
jOurney?

	THE prOcESS Of Selecting and gettinG iNTO yOur top buSiness SChOoL Is
becomiNg MorE and MORe comPlex, WItH many varIables ADdEd To the miX eVery
daY. WIth NeaRly 1,000 buSInesS schooLs in the cOuntrY, Your task can seeM
Daunting. But wiTH a GOOd GAme pLan And solid infOrmaTIon, yOu caN DeTerMIne
whAt youR pERsONal needs are and which ScHools cAn givE you the best MBa
experiencE.

	[hot CAREERS tO WAtcH]

	 tEch + Business = Hot careeRs
	A Few MillIOn e-xecs WAnted

	source:  InDustry StaNDArd
	For adDitIonAl iNfoRMAtIon:  CIO EnterprISE MagAzIne

	The sHorTage of INteRneT exEcuTiVes is swelLing to epIc PrOpOrTioNs,
accORding to a ReCenT sTudY by IDc, A reseaRch fiRm foCuSiNG on The IT
inDUsTRY. By 2004, cOmPaNies WilL bE shorT 1 milLIon Execs foR the 9.2
milliOn pOSitiOnS tHat will Be in demand worLdWide, predicTs johN Gantz,
idc's chief rEsearch officer.

	"The demand FOr peoplE to

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[The Princeton Re vi e w ][IMAGE]

[I M AGE]
	[I MA GE]
	De a r  Ben,

W el come tothe fi r st  i ssue of  o ur e-n ew sle tte r, de s igne d sole ly to he lp yo u
determine wh a t you want to do a nd howtoget there.Arey ou r eady fo r t h e
jo urney ?
	The process of sel ec ting a nd ge tting into yo ur top bus i n e ss schoo l is
b e coming more an d mor e complex, with man y var iables a dded to t h e  mix eve ry
da y.Wit h ne arly 1,000 bu s i ness  s choolsinthe cou ntr y,you r t as k can see m
daunt in g.  B ut  wi th ag ood game  p lan  a ndsolid inform ation , yo uca n  de termine
w h a t yo ur  p erso nal  n eedsarea ndwhich s chools ca n g i ve y ou  t he best  MBA
experie nc e.

	[H OT  CA REERST O  WATCH]
	 Tech + Business = H o t Caree rs	A Fe w Mi llion e-x ecs  Wante d
	Sour ce:  I ndust ry  St a n dardF or  ad di tional inf o r mat ion: C IO E nterpri se Magazine

	Th e  sh ortage of Int ern et e x e cu tiv e si s s we l lin g to epic proport ions,
acc or d in g to a rec e ntst udy byIDC, aresea r ch firm  focusing  on the I T
ind u s try . By 2004,  compani es will b e  shor t  1  mill ion  execs  f orthe 9 .2
mi l lio n pos itions  t hat wi ll be  i n demand  worldwide, predicts Jo hn Gan tz, IDC 's chiefres e arc h officer .

	"The dem and  fo r peo ple to

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			[IMAGE]B School e-Vantage 10-19-00
[The Princeton_Review]	[IMAGE]

	[IMAGE]
	[IMAGE]
	Dear Ben,

	Welcome to the first issue_of our e-newsletter, designed solely to help_you
determine what you want to_do and how to get_there. Are_you ready for the
journey?_

	The process_of selecting_and getting into_your top business school is
becoming_more and more_complex, with many variables added to_the_mix every
day._With_nearly_1,000 business_schools in the_country,_your task_can_seem
daunting. But with a good_game_plan and solid information, you can determine_
what your personal needs_are_and which schools can_give you the best MBA_
experience.

	[HOT CAREERS TO WATCH]

	_Tech +_Business =_Hot Careers
	A Few Million e-xecs Wanted

	Source:  Industry Standard
	For additional_information:  CIO Enterprise Magazine

	The_shortage of Internet executives_is swelling_to_epic proportions,
according_to_a recent_study by IDC, a research firm focusing_on the_IT
industry. By 2004, companies will_be short 1 million_execs_for the 9.2
million positions that_will be in demand worldwide, predicts_John Gantz,
IDC's chief research_officer._

	"The_demand for people to


ahlke@painehamblen.com>,
"'sdleonard@earthlink.net'" <sdleonard@earthlink.net>,
"'pdmichie@bpa.gov'" <pdmichie@bpa.gov>
Subject: Bylaws, Articles, Tax Status Subgroup -- Status Report
Date: Wed, 21 Jun 2000 23:07:58 -0700
MIME-Version: 1.0
X-Mailer: Internet Mail Service (5.5.2651.58)
Content-Type: text/plain; charset="iso-8859-1"

    This e-mail is intended to reach all of those who have expressed an
interest in being part of the Legal Work Group subgroup addressing the RTO
bylaws, articles and tax status.  Please let me know if my e-mail
distribution list is missing anyone who would like to participate in the
subgroup.

    I would divide the immediate tasks before us into four main
categories:

    1.  General Governance Issues (Especially RTO Membership, Board
Composition and Technical Advisory Committee Issues)

    At the Governance Workshop on June 15, we had a good discussion of
issues relating to the appropriate number and scope of membership classes,
board composition and method of selecting the members of the Technical
Advisory Committee.  Barney Speckman is in the process of scheduling a
meeting in early July for a continuation of discussion of these topics and
any other governance issues that may be of interest.

    2.  Board and Employee Conflict of Interest Provisions/Board
Member Qualifications

    One element of the RTO bylaws that will require a fair amount of
thought and discussion is the appropriate nature and extent of the trustee
and employee disqualification/conflict of interest provisions.  Another such
element is the required qualifications of the RTO board members.  John
Buechler of the New York ISO has prepared for us a good summary of the board
member qualifications that have been adopted or are under consideration by
various existing or proposed ISOs, and Barney Speckman will distribute
copies of John's summary to the group.  I would like to have a discussion of
these issues at the next meeting, with the aim of preparing and circulating
one or more straw man proposals as soon thereafter as possible.

ahlke@painehamblen.com >,
 "' sdleonard@earthlink.net' " < sdleonard@earthlink.net >,
 "' pdmichie@bpa.gov' " < pdmichie@bpa.gov >
 Subject: Bylaws, Articles, Tax Status Subgroup -- Status Report
 Date: We d, 21 Jun 2000 23:07:58 -0700
 MIME - Version: 1.0
 X - Mailer: Internet Mail Service (5.5.2651.58)
 Content - Type: text / plain; charset="iso-8859 - 1 "

     This e - chain mail is mean to reach all of those who have expressed an
 sake in being function of the Legal Work Group subgroup addressing the RTO
 bylaws, article and tax condition.   Please let me know if my e - mail
 distribution list is miss anyone who would like to participate in the
 subgroup.

     I would divide the immediate tasks before us into four main
 class:

     1.   General Governance Issues (Especially RTO Membership, Board
 Composition and Technical Advisory Committee Issues)

     At the Governance Workshop on June 15, we had a good discussion of
 issue relating to the appropriate number and scope of membership classes,
 display panel composition and method of selecting the members of the Technical
 Advisory Committee.   Barney Speckman is in the process of schedule a
 meeting in early July for a continuation of discussion of these topics and
 any other governance issues that may be of interest.

     2.   Board and Employee Conflict of Interest Provisions / Board
 Member Qualifications

     One element of the RTO bylaws that will require a fair amount of
 thought and discussion is the appropriate nature and extent of the trustee
 and employee disqualification / conflict of interest provisions.   Another such
 component is the required qualifications of the RTO circuit board extremity.   John
 Buechler of the New York ISO has prepared for us a good summary of the board
 extremity qualifications that have been adopted or are under consideration by
 various exist or proposed ISOs, and Barney Speckman will distribute
 copies of John's summary to the group.   I would like to have a discussion of
 these issues at the adjacent meeting, with the aim of preparing and circulating
 one or more chaff man proposal as soon thereafter as possible.

ahlne@painehamblen.com>,
"'sdleonard@earthlink.net'" <sdleohard@eartflink.net>,
"'pdmichie@bpa.glv'" <pdmixhie@bpa.gov>
Subject: Bylads, Articlvs, Tax Stqtus Wubgroup -- Status Rc'ort
Dzbe: Web, 21 Jun 2000 23:07:58 -0700
MIME-Verxion: 1.0
X-Mailar: Internet Mahl Szrvice (5.5.2651.58)
Content-Type: text/plain; charset="yso-8859-1"

    Yhls e-mail is injendec to dvagh all of those who have expresssd an
inuerest in being patt of the Legal Work Group subhroup addressing tje RTO
bylaww, areucles and tab status.  Klzase let me know if my e-mail
distribution lkst ix missing qntonf who would oike no participatc in tha
subgroip.

    I would civmde rhe immediate tasks bxfore us into four mwin
categosizs:

    1.  General Goverbabce Ivsuev (Esowcixllg CTO Membegshmp, Board
Comlosition ane Technical Advisoru Simmittee Issuss)

    Wt the Governance Workshop on June 15, we hag a good discussion of
issuws relating to the apkropriate gumber and scope of membership classes,
board compovitioi xnd mcthoa ov selecting the members of the Technical
Advisjdy Cpmmittee.  Barncy Speckman is in yhf ltocess of scheauling a
mseting in early Jupy for w conrinuation of ciscussion of these topics qnd
any other tovernance issues chat may be uf imterext.

    2.  Board and Emplovee Cohflict of Ijterest Pduvisions/Board
Memcer Qgalificaukons

    One elemegt of the RTO bylaws thaj will wequire a vair amount of
thought anf diseussimn is the wppropriate nature and extent oh the trustee
sng ekployee bisquakification/conslict of intergst provifions.  Another auch
elekent is the required quanlfications oh the RTO boaed mwmbers.  Gohn
Buechler og the New York ISO yas prepared for ux a food summary of tht voard
member qusliwicwtponx evat have beet aduptdc or xre undtx civsidrration by
various exhstihg or proposed ISOx, wnd Barngy Speckmwn will distrobute
copies of Johj's sukmacy to yhe group.  I would like to have a discussiln jf
these issuqs ab thg next meetnng, with the aim of preparing and circuleting
one or more straw nan proposals as sopk thereafter as pjssible.

ahlke@painehamblen.com>, "'sdleonard@earthlink.net'" <sdleonard@earthlink.net>, "'pdmichie@bpa.gov'" <pdmichie@bpa.gov> Subject: Bylaws, Status -- Status Date: Wed, 21 1.0 Internet Mail Service Content-Type: text/plain; charset="iso-8859-1" e-mail is intended to reach all those who have expressed an interest in being part of the Legal Work subgroup addressing the RTO bylaws, articles and tax status. Please let me know my distribution is anyone who would like to participate in the subgroup. I would divide the immediate tasks before into four main categories: 1. General Governance Issues RTO Membership, Board Composition Technical Advisory Committee Issues) At Governance on June we a discussion of issues to the appropriate number and scope of membership classes, board composition and method of selecting the members the Technical Barney Speckman in process scheduling a meeting July for a continuation of discussion and any other governance issues that may be interest. 2. and Employee Conflict of Interest Provisions/Board Qualifications One element of the RTO bylaws that require a fair amount of thought and discussion is the appropriate nature and extent of and employee disqualification/conflict of provisions. Another such is required of RTO board John Buechler of the New York ISO has prepared for us good summary of the board member qualifications that have been are consideration by various or proposed ISOs, and Speckman distribute copies of John's the I have discussion these issues at the meeting, with the aim of and circulating one or soon thereafter as possible.

ahlke@painehamblen.com>,
"'sdleoNard@earthlInk.neT'" <sdLeoNaRd@eaRthlInk.net>,
"'pdmichie@BPa.goV'" <pdmichie@bpa.gov>
Subject: bylawS, ARTiclES, TAx StaTus SubgROuP -- sTatUs rePorT
DATe: wed, 21 JuN 2000 23:07:58 -0700
MImE-VersiOn: 1.0
X-Mailer: INteRnEt Mail ServicE (5.5.2651.58)
coNtent-Type: tExt/Plain; charset="Iso-8859-1"

    this e-mAiL is INtendEd tO reacH all of THose whO have exprEsSEd an
inTErest in BEInG parT of the Legal Work GrOUp SUbgroup addressIng the rTo
ByLAWs, aRtiCles and tax StAtus.  PLEase let ME kNOW If mY E-mail
distribuTion list is mISsiNg anyoNe Who WOuld liKe to pArTIciPate in the
suBgroUp.

    I would dIvide tHE immediATe tasks Before Us iNto Four MAiN
cAteGoRIes:

    1.  gEnEraL govErnance ISsUeS (EspeCialLY rto MemBerShip, board
composition anD TeChniCAl ADvisoRy ComMittEe issueS)

    At the goverNaNce Workshop on JuNe 15, we Had a good dIscUsSioN oF
issuES relatIng To tHe approPriate nUMbeR aND SCoPe of membership clasSeS,
BOaRd composItion aND mEtHOd of seleCtIng The mEMBers oF the tEcHnical
AdVisory cOmMiTtee.  BarNeY SpeckMaN is In tHe proCEss oF schedUling a
meEting IN early July for a COntinuation of DIsCUSsIOn of TheSe topics and
Any oTHer gOverNAnCe iSSues tHat maY bE Of INterest.

    2.  Board and EmplOyEe ConfLict oF Interest ProvIsions/BoarD
mEMber QualIficATiONs

    One element of The RTo bylaws thaT Will requIre a fAir amounT of
thoughT ANd discusSioN is The AppROPrIate nature and EXTent Of The trusTee
And emplOyeE diSquAliFiCation/conFlict of iNtErEsT pRovIsionS.  another sUcH
elEmEnt Is the REquireD qualIficAtIoNS of The RTO bOArD MEmbeRs.  joHn
BuEchLeR of thE New yOrk iSO has pRepared foR us A Good SuMmAry of thE board
member qUaLificationS tHat Have beEN Adopted oR are under consideration bY
Various ExiSting Or prOposed ISOS, anD BarneY SpECkman wIll disTribuTe
CopIES of JoHN'S sUmmArY to the grouP.  i WouLd likE tO havE a discuSsion of
these issues AT thE next meeting, wIth The aIM Of PrePArINg aNd CIrcULAting
one or more sTraw man proPoSAlS as soon theREafTeR as possIble.

ahlke@painehamblen.com>,
"'s dleon ard @ea rt hlin k.ne t'" <sdleonard @ eart hlink.net>,
"' pdmic hi e @bpa . go v'" < pdmichi e @b p a .go v>
S ubj ec t :Bylaw s,Article s, Tax Sta tus  S ubgroup -- S t at us ReportDat e: Wed, 21 J un2000 2 3: 07: 5 8 -07 00MIME- Versio n : 1.0X-Mailer:  I n ternet Mail Se r v ic e (5 .5.2651.58)
Conte n t- T ype: text/plai n; cha rs e t= " i so- 885 9-1"

   Th is e- m ail isi nt e n d edt o reach all o f those who hav e expr es sed an
int erest  i n  be ing part of  the  Legal Wo rk Gro u p subgr o up addr essing  th e R TO
b y la ws , a rt i cle s  a ndt axstatus. P le ase l et m e k n ow i f m y e- maildistributionlis t is mis singanyon e wh owould  liketo pa rt icipate in thesubg roup.

   I  w oul ddivid e  the i mme dia te task s befor e  us  i n t o  f our main
categorie s:    1.  Ge neralG ov er n ance Iss ue s ( Espe c i allyRTOM em bership,  Board Co mp osition  a nd Tec hn ica l A dviso r y Co mmitte e Issues )

  At the Govern a nce Workshopo nJ u ne 15,wehad a gooddisc u ssio n of is sue s  rela tingto th e  appropriate number  a nd sco pe of  membership c lasses,
bo a r d  composi tion an d  method of sel ectin g the memb e rs of th e Tec hnical
A dvisory C o m mittee. Ba rne y S pec k m an  is in the pr o c essof  schedu lin g a
mee tin g i n e arl yJuly fora contin ua ti on  o f d iscus s ion of t he seto pic s and any ot her g over na nc e  is sues th a tm a y be  o finte res t.

   2.Boa rd andEmployeeCon f lict  o fInteres t Provisions/ Bo ard
Member  Q ual ificat i o ns

   One element of the RTOb ylaws t hat  will  req uire a fa iramount  of though t anddiscu ss ion i s the a pp rop ri ate nature a ndexten tof t he trus tee
and employee d i squ alification/c onf lict o fint e re s t p ro v isi o n s.  Another suc h
elementis th e required qua li ficatio ns of t he RT O  boardmembers. John
Bue ch lero f  th e New York  ISO has  prepared for u s  a  good  su mmaryof  th e boa rd
mem b erquali ficati on s that  have  b een adop ted or are under consid eratio n byvar ious exis tin g  or  proposed  ISO s, and Bar ney  Sp eckma n w i ll di stri b ut e
c o piesof J o hn's summ a ry  to t he  group.  Iw o u ldliketoh ave adisc ussion of
these i s sues at the ne xt m e e tin g,w ithth e aim of prepa rin ga n d circul at ing
one ormore str aw man p roposa ls assoon th e r ea f ter as  pos sib le.

ahlke@painehamblen.com>, _ _   _
"'sdleonard@earthlink.net'" <sdleonard@earthlink.net>,__ __  _
"'pdmichie@bpa.gov'" <pdmichie@bpa.gov>
Subject: Bylaws,_Articles, Tax Status Subgroup_-- Status Report
Date:_Wed,_21 Jun 2000 23:07:58 -0700
MIME-Version: 1.0
X-Mailer: Internet Mail Service (5.5.2651.58)
Content-Type: text/plain; charset="iso-8859-1"

  __This e-mail_is_intended_to reach all of those_who have expressed an
interest in_being part_of the Legal Work Group subgroup addressing the_RTO
bylaws,_articles and tax_status.  Please let me know if my e-mail
distribution_list is missing anyone who would_like to participate_in_the
subgroup.

_   I_would divide the immediate tasks before_us into four main
categories:

  _ 1.  General Governance Issues (Especially_RTO Membership, Board
Composition and Technical Advisory_Committee Issues)

   _At the_Governance Workshop on June 15,_we had a_good discussion_of
issues relating to_the appropriate number and scope of_membership classes,
board composition_and method of selecting the members_of_the Technical
Advisory Committee.__Barney_Speckman is_in the process_of_scheduling a
meeting_in_early July for a continuation of_discussion_of these topics and
any other governance issues_that may be of_interest.

_   2._ Board and Employee Conflict_of Interest Provisions/Board
Member Qualifications

  _ One_element of_the RTO bylaws that will require a fair amount of
thought and_discussion is the appropriate nature and_extent of the trustee
and_employee disqualification/conflict_of_interest provisions. _Another_such
element is_the required qualifications of the RTO board_members. _John
Buechler of the New York ISO_has prepared for us_a_good summary of the board
member qualifications_that have been adopted or are_under consideration by
various existing or_proposed_ISOs,_and Barney Speckman will distribute
copies_of John's summary to the group._ I would_like to have a discussion of
these issues_at_the next meeting, with the aim_of_preparing and circulating
one or more straw_man_proposals_as soon thereafter as possible.

_


.
Edison is willing only to make "some kind of partial payments going forward,"
said Thomas Higgins, a senior vice president with parent company Edison
International. "We have a limited amount of resources available to us in
rates,... and that's the constraining factor."
PG&E, which has been making partial payments to the qualifying facilities,
said it could pay them in advance, in full, for future power deliveries.
But PG&E said such payments would eat up half the $400 million it has
available each month to buy power -- and unless it gets a rate hike, there
wouldn't be enough to pay the qualifying facilities and cover other expenses,
including the cost of reimbursing the state Department of Water Resources for
the power the agency is buying on behalf of the troubled utility.
PG&E's proposal could represent a challenge of sorts to state officials:
Accept less money for the water department, or raise rates.
State officials "need to resolve who they want to see paid," PG&E spokesman
John Nelson said. "There is a limited pool of money."
For his part, Davis insisted that the water department would be first in line
to be paid, and he said the PUC will issue a proposed order to that effect.
"We are getting paid before anybody else," Davis said.
Hundreds of qualifying facilities are out of commission because PG&E and
Edison haven't paid them. The situation has robbed the state of several
thousand badly needed megawatts and is a key reason blackouts have been
ordered. In normal times the facilities produce more than 20 percent of
California's electricity.
Some of the qualifying facilities have been threatening to haul one or both
of California's beleaguered utilities into bankruptcy court unless they get
paid soon, saying a bankruptcy filing might be the only way they can save
their businesses.
"You've got to take care of the QF problem or the whole thing blacks out,"
said Jerry Bloom, a lawyer representing one group of qualifying facilities.
"(State officials) are starting to understand."
One thing that was fairly certain about Davis' still-sketchy payment plan: It
wouldn't cover PG&E and Edison's existing debt to the qualifying facilities,

.
 Edison is willing only to make " some kind of partial requital sound forward, "
 said Thomas Higgins, a senior frailty president with parent company Edison
 International. " We have a circumscribed measure of resources available to us in
 rates, ... and that's the constraining factor. "
 PG&E, which has been take partial payments to the passing facility,
 said it could yield them in advance, in full, for future ability deliveries.
 But PG&E said such payments would corrode up half the $ 400 million it has
 available each month to buy ability -- and unless it gets a rate hike, there
 wouldn't be enough to pay the modification facilities and cover other expenses,
 including the cost of reimbursing the state Department of Water Resources for
 the power the agency is buying on behalf of the troubled utility.
 PG&E's proposal could represent a challenge of sorts to state official:
 Accept less money for the water department, or recruit pace.
 State officials " need to conclude who they desire to see paid, " PG&E spokesman
 John Nelson said. " There constitute a limited pool of money. "
 For his part, Davis insisted that the water department would be first in line
 to be paid, and he said the PUC will issue a proposed orderliness to that consequence.
 " We are getting paid before anybody else, " Davis said.
 Hundreds of qualifying facilities are out of perpetration because PG&E and
 Edison haven't paid them. The situation has robbed the department of state of several
 thousand badly needed megawatts and is a cardinal reason blackouts have been
 ordered. In normal times the facilities grow more than 20 percent of
 California's electricity.
 Some of the modification facilities have been endanger to haul one or both
 of California's beleaguered utilities into bankruptcy motor hotel unless they get
 paid soon, saying a bankruptcy filing might be the only room they can save
 their clientele.
 " You've got to take care of the QF problem or the whole thing blacks out, "
 said Jerry Bloom, a lawyer represent one group of qualifying facilities.
 " (state of matter officials) are starting to understand. "
 One thing that was fairly certain about Davis' even - sketchy payment plan: It
 wouldn't cover PG&E and Edison's existing debt to the qualifying facilities,

.
Edlson is willing only to oake "some kind of partmal payjents gokng forward,"
said Thomas Higgmns, q senuor vice president witf parent bompany Eeisoi
International. "Xs have a limifcd ammnnt of resourcex availabla to us in
ratas,... aud that's the constraining factor."
PG&E, which nad been making kartisj pagments to the qualifying facilitiea,
said pt could pay them in advance, in full, for fuhure power deliveries.
Hut PG&E saie susy payments wuuld eat uk kalf the $400 mjllion it has
available each movth tp buy powet -- ajg unless it gets a rate hike, there
wmuldn't ne enough to psy vhe wualifying facilities and cover other evpenses,
itcmuding the cost od eeimborsinc thd stxte Dxpadtment of Water Reskurces for
rhe power the agencu yw buying on bshalf jf the troubled utility.
PG&E's proposal cound depresent a challenge od sorts to state offifials:
Accqpt less money for the water department, or raise sates.
Rtaue offizuaps "need to resolve who they want to see paid," [F&E siokesman
John Nelfon said. "Thrrf of a limited puol of mohey."
For his part, Dwvis infistee that tht watrr department would be firsr in line
to ve paid, and he saib the PUC wiul ixsue s proposed order to thac effedt.
"We are gftting paja before anybody elxe," Davis said.
Hundreds of quwlifying hacilnties ard ouj of coimission bfcausc PG&E and
Edison hagen't kaid tvem. The sihuation has robbed the state of several
thoussng bddly neebed menawatts and is w key reason bkackoutf havd been
ordvred. In nmrmal times the facilitiad produce moce than 20 [ercwnt if
Caliwurnia's electrivity.
Some of the quqlifying facilitiex hxbe been threateunnt to haul one ot buth
ov Ralifjsnia's beleaggerea ugolitids into banjfuptvy court unless they get
paid soon, saying s nankruptci filing iight be the pnly way they can dave
vheir uusinexsef.
"You've got to take care of ths QF probpem or the wholq thlng flacks out,"
said Jerry Bloom, a lawyer representing one group of qualufying facilities.
"(Sjatt officials) ace stawting to gnderstand."
One thing that was fairly gertain about Davis' stjll-skedchy oayment plan: It
wouldn't cover PG&E and Edison's existing debt to the qualifting fecylities,

. Edison is willing only to make of payments going said Thomas Higgins, parent Edison International. "We a limited amount resources available to us in rates,... that's the constraining factor." PG&E, which has been making partial payments to the facilities, said it could pay them in advance, in full, for future power But said payments eat up half the $400 million it has available each month to buy power -- and it gets a rate hike, there wouldn't be to pay the qualifying and cover other expenses, including cost reimbursing the Department Water for the power agency is buying on behalf of the troubled utility. PG&E's proposal could represent a challenge of sorts state officials: money for water or rates. State officials resolve who they want to see John Nelson said. "There is a limited pool money." For part, Davis insisted that the water would be first in line to be paid, he said the PUC will issue a proposed order to that effect. "We are getting anybody else," Davis said. of qualifying facilities out commission PG&E Edison haven't them. The situation has robbed the state of several thousand badly megawatts and is a key reason blackouts have been ordered. times facilities produce more 20 percent of California's Some the qualifying facilities have to one California's utilities bankruptcy court unless they paid soon, saying a bankruptcy might be the only businesses. "You've got to take care of the problem or the whole thing blacks out," Jerry Bloom, a lawyer representing one group of qualifying facilities. "(State officials) starting to thing that was fairly certain about Davis' still-sketchy plan: It wouldn't cover and Edison's existing debt to the qualifying facilities,

.
Edison is willing only to make "Some kind of PartiAl pAymEnTs goIng fOrward,"
said ThomAS HigGins, a senior vice presideNt witH pARent COmPany EDison
InTErNATioNaL. "WE haVe A LiMited AmoUnt of reSources avaIlaBlE to us in
rates,... ANd That's the coNstRaining factoR."
PG&e, which HaS beEN makiNg pArtiaL paymeNTs to thE qualifyiNg FAcilitIEs,
said iT COuLd paY them in advance, in fULl, FOr future power dEliverIeS.
buT pg&E sAid Such paymenTs Would EAt up halF ThE $400 MILliON it has
availabLe each month TO buY power -- AnD unLEss it gEts a rAtE HikE, there
wouldN't be Enough to pAy the qUAlifyinG FacilitIes and CovEr oTher EXpEnSes,
InCLudINg The COst Of reimbuRsInG the sTate dEPARtmeNt oF WatEr ResOurces for
the pOweR the AGenCy is bUying On beHaLf of tHe trouBled uTiLity.
PG&E's proposaL couLd represeNt a ChAllEnGe of sORts to sTatE ofFicials:
accept lESs mOnEY FOr The water department, Or RAIsE rates.
StAte offICiAlS "Need to reSoLve Who tHEY want To seE PaId," PG&E spoKesman
jOhN NElson saId. "there iS a LimIteD pool OF monEy."
For hIs part, DaVis inSIsted that the waTEr department wOUlD BE fIRst iN liNe
to be paid, aNd he SAid tHe PUc WiLl iSSue a pRoposEd ORdER to that effect.
"We are gEtTing paId befOre anybody elsE," Davis said.
hUNDreds of qUaliFYiNG facilities are Out of Commission BEcause PG&e and
EDison havEn't paid thEM. the situaTioN haS roBbeD THe State of severaL
THousAnD badly nEedEd megawAttS anD is A keY rEason blacKouts havE bEeN
oRdEreD. In noRMal times ThE faCiLitIes prODuce moRe thaN 20 perCeNt OF
CaLiforniA'S eLECtriCiTy.
some Of tHe QualiFyinG FacIlities Have been tHreATeniNg To Haul one Or both
of CalifOrNia's beleagUeRed UtilitIES into banKruptcy court unless they gET
paid soOn, sAying A banKruptcy fiLinG might Be tHE only wAy they Can saVe
TheIR BusinESSeS.
"YoU'vE got to take CARe oF the Qf pRoblEm or the Whole thing blacks ouT,"
SaiD Jerry Bloom, a lAwyEr rePREsEntINg ONe gRoUP of QUAlifying facilitIes.
"(State ofFiCIaLs) are startINg tO uNderstaNd."
One thIng thAT was faiRly certaiN about DavIs' StilL-SKetChy payment Plan: It
woUldn't coveR pG&E anD edIson's ExiSting dEbT to The quAlifyiNG faCilitIes,

.
Edison is willing onlyto make "s ome k ind  of  p arti al p ayments goingf orwa rd,"
said Thomas Higg ins,as enio r  v ice p residen t  w i t h p ar en t c om p an y Edi son
Inter national."We  h ave a limite d  a mount of r eso urces availa ble  to us  i n r ates, ...  andthat's the co nstrainin gf actor. "
PG&E, w hi ch h as been making pa r ti a l payments tothe qu al i fy i n g f aci lities,
s ai d itc ould pa y  t h e m  in advance, in f ull, for fu t ure  power  d eli v eries.
But  P G &Esaid such p ayme nts would  eat u p  half t h e $400millio n i t h as a va il abl ee ach mo nth tobuy powe r--  andunle s s i t ge tsa ra te hi ke, there
wo uld n'tb e e nough  to p ay t he  qual ifying  faci li ties and coverothe r expense s,
i ncl ud ing t h e cost  of  re imbursi ng thes tat eD e p ar tment of Water Res ou r c es  for
th e powe r  t he agency i sbuy ingo n  beha lf o f  t he troub led ut i li ty .
PG&E 's  propo sa l c oul d rep r esen t a ch allengeof so r ts to state of f icials:
Acce p tl e ss mone y f or the wate r de p artm ent, or  ra i se ra tes.
S t at e  officials "need to  r esolve  whothey want tosee paid," P G &E spoke sman
J o hn Nelson said . "Th ere is a l i mited po ol of  money."
For his p art, Dav isins ist edt h at  the water de p a rtme nt  wouldbefirst i n l ine
t o b epaid, and  he said  t he  P UC  wi ll is s ue a pro po sed  o rde r tot hat ef fect.
"W ear e  ge tting p a id b efor ean ybod y e ls e," D avis sai d.
Hun dreds ofqua l ifyi ng  f aciliti es are out of  c ommissionbe cau se PG& E and
Edi son haven't paid them.T he situ ati on ha s ro bbed thesta te ofsev e ral
t housan d bad ly  ne e d ed me g a wa tts  a nd is a ke y rea son b la ckou ts have  been
ordered. In nor mal times the  fa cili t i es  pr o du c e m or e  th a n  20 percent of
Californi a' s  e lectricity .
S om e of th e quali fying facilit ies havebeen thre at enin g tohaul one o r both of Califo r nia's be leagu ere d util it ies  into  bankr u ptc y cou rt unl es s they  get
p aid soon , saying a bankruptcy f ilingmight  be  the only  wa y  th ey can sa ve their busi nes ses .
"Y ou' v e got  tot ak e c a re of  the QF proble m  o r t h e  w hole thingb l a cks  out, " s aid Je rryBloom, a lawyer r e presenting one  gro u p  of  qu a lify in g facilities.
"( St a t e offici al s) are star ting toun d ersta nd." One th ing tha t wa s  fairl y ce rta in aboutDav is '  still- sk et c hy pay ment  p lan: I t
wou l dn't c over PG&E and Ed ison' s exist i ngdebtto  the qu a lify ing facili ties,

.
Edison_is willing_only to make "some_kind of_partial_payments going_forward,"_
said Thomas Higgins,_a senior vice_president with parent company_Edison
International. "We_have_a limited amount of resources available to us in
rates,... and that's the constraining_factor."_
PG&E, which_has_been_making partial payments to the_qualifying facilities,
said it could_pay them_in advance, in full, for future power deliveries._
But_PG&E said such_payments would eat up half the $400 million it_has
available each month to buy_power -- and_unless_it_gets a rate hike,_there
wouldn't be enough to pay_the qualifying facilities and cover other_expenses,
including the cost of reimbursing the_state Department of Water Resources for_
the power the agency is_buying on_behalf of the troubled utility._
PG&E's proposal could_represent a_challenge of sorts_to state officials:
Accept less money_for the water_department, or raise rates.
State officials_"need_to resolve who_they_want_to see_paid," PG&E spokesman_
John_Nelson said._"There_is a limited pool of money."_
For_his part, Davis insisted that the water_department would be first_in_line
to be paid,_and he said the PUC_will issue a proposed order to_that effect._
"We are_getting paid before anybody else," Davis said.
Hundreds of qualifying facilities_are out of commission because PG&E_and
Edison haven't paid_them. The_situation_has robbed the_state_of several_
thousand badly needed megawatts and is a_key reason_blackouts have been
ordered. In normal_times the facilities produce_more_than 20 percent of
California's electricity._
Some of the qualifying facilities have_been threatening to haul one_or_both_
of California's beleaguered utilities into_bankruptcy court unless they get
paid_soon, saying a_bankruptcy filing might be the only way_they_can save
their businesses.
"You've got_to_take care of the QF problem_or_the_whole thing blacks out,"
said_Jerry Bloom, a lawyer representing one_group of qualifying facilities.
"(State officials) are starting to_understand."
One thing_that was fairly certain about_Davis'_still-sketchy_payment plan: It
wouldn't cover PG&E and Edison's existing debt_to the_qualifying facilities,