Message-ID: <23606180.1075840900472.JavaMail.evans@thyme>
Date: Fri, 8 Jun 2001 18:37:00 -0700 (PDT)
From: kristin.walsh@enron.com
To: john.lavorato@enron.com, louise.kitchen@enron.com
Subject: California Update 6/08/01
Cc: christopher.calger@enron.com, christian.yoder@enron.com, 
	steve.hall@enron.com, mike.swerzbin@enron.com, 
	phillip.allen@enron.com, tim.belden@enron.com, 
	jeff.dasovich@enron.com, chris.gaskill@enron.com, 
	mike.grigsby@enron.com, tim.heizenrader@enron.com, 
	vince.kaminski@enron.com, steven.kean@enron.com, 
	rob.milnthorp@enron.com, kevin.presto@enron.com, 
	claudio.ribeiro@enron.com, richard.shapiro@enron.com, 
	james.steffes@enron.com, mark.tawney@enron.com, 
	scott.tholan@enron.com, britt.whitman@enron.com, 
	lloyd.will@enron.com, alan.comnes@enron.com, 
	rogers.herndon@enron.com, james.lewis@enron.com, don.black@enron.com, 
	robert.johnston@enron.com
Mime-Version: 1.0
Content-Type: text/plain; charset=us-ascii
Content-Transfer-Encoding: 7bit
Bcc: christopher.calger@enron.com, christian.yoder@enron.com, 
	steve.hall@enron.com, mike.swerzbin@enron.com, 
	phillip.allen@enron.com, tim.belden@enron.com, 
	jeff.dasovich@enron.com, chris.gaskill@enron.com, 
	mike.grigsby@enron.com, tim.heizenrader@enron.com, 
	vince.kaminski@enron.com, steven.kean@enron.com, 
	rob.milnthorp@enron.com, kevin.presto@enron.com, 
	claudio.ribeiro@enron.com, richard.shapiro@enron.com, 
	james.steffes@enron.com, mark.tawney@enron.com, 
	scott.tholan@enron.com, britt.whitman@enron.com, 
	lloyd.will@enron.com, alan.comnes@enron.com, 
	rogers.herndon@enron.com, james.lewis@enron.com, don.black@enron.com, 
	robert.johnston@enron.com
X-From: Kristin Walsh <Kristin Walsh/ENRON@enronXgate@ENRON>
X-To: John J Lavorato <John J Lavorato/ENRON@enronXgate>, Louise Kitchen <Louise Kitchen/HOU/ECT@ECT>
X-cc: Christopher F Calger <Christopher F Calger/ENRON@enronXgate>, Christian Yoder <Christian Yoder/ENRON@enronXgate>, Steve C Hall <Steve C Hall/ENRON@enronXgate>, Mike Swerzbin <Mike Swerzbin/ENRON@enronXgate>, Phillip K Allen <Phillip K Allen/ENRON@enronXgate>, Tim Belden <Tim Belden/ENRON@enronXgate>, Jeff Dasovich <Jeff Dasovich/NA/Enron@Enron>, Chris Gaskill <Chris Gaskill/ENRON@enronXgate>, Mike Grigsby <Mike Grigsby/ENRON@enronXgate>, Tim Heizenrader <Tim Heizenrader/ENRON@enronXgate>, Vince J Kaminski <Vince J Kaminski/ENRON@enronXgate>, Steven J Kean <Steven J Kean/NA/Enron@Enron>, Rob Milnthorp <Rob Milnthorp/ENRON@enronXgate>, Kevin M Presto <Kevin M Presto/ENRON@enronXgate>, Claudio Ribeiro <Claudio Ribeiro/ENRON@enronXgate>, Richard Shapiro <Richard Shapiro/NA/Enron@Enron>, James D Steffes <James D Steffes/NA/Enron@Enron>, Mark Tawney <Mark Tawney/ENRON@enronXgate>, Scott Tholan <Scott Tholan/ENRON@enronXgate>, Britt Whitman <Britt Whitman/ENRON@enronXgate>, Lloyd Will <Lloyd Will/ENRON@enronXgate>, Alan Comnes <Alan Comnes/ENRON@enronXgate>, Rogers Herndon <Rogers Herndon/ENRON@enronXgate>, James W Lewis <James W Lewis/HOU/EES@EES>, Don Black <Don Black/HOU/EES@EES>, Robert Johnston <Robert Johnston/ENRON@enronXgate>
X-bcc: 
X-Folder: \ExMerge - Kitchen, Louise\'Americas\Regulatory
X-Origin: KITCHEN-L
X-FileName: louise kitchen 2-7-02.pst


CPUC Delays QF Payment Vote 
Sources believe that the delay in the PUC vote on paying the QFs 15% of  their undercollected debt is likely a result from both a concern about bankruptcy issues raised by issuing what could be seen as a "preference payment" to the QFs (the PUC does follow these issues out of necessity, given the current environment) and a lack of clarity regarding how to implement the 15% payment.  The delay was unsurprising and characteristic of how the PUC operates.  It is also noted that there are many claims on SoCal's and PG&E's cash flows currently.  Additionally, agreeing to pay 15% of debts to the QFs raises legal issues, in that the utilities would be paying debts to some creditors, but not others.  This could increase the likelihood of an involuntary bankruptcy filing against SoCal by the non-QF creditors.