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Karen: See highlited section of story below. PG&E's got it right. Recall that DWR was only buying power that it determined was "priced reasonably." Consequently, the net short wasn't getting picked up. That meant that the ISO would have to go to the real-time market to close the gap. The ISO would then charge the utilities for the power purchased. Recall that Bob Glynn referenced the $300 MM/month that continued to pile up on PG&E's balance sheet as one of the several reasons that PG&E put itself into bankruptcy. Now that PG&E's in bankruptcy, the state is now responsible for the full net short, and can't continue to sluff it off onto PG&E's balance sheet. So it's therefore no surprise that the State's daily bill for power purchases has increased dramatically---just not for any of the bogus reasons cited by
CA legislature in doubt