Message-ID: <12668105.1075858670294.JavaMail.evans@thyme>
Date: Tue, 11 Sep 2001 08:16:10 -0700 (PDT)
From: lisa.mellencamp@enron.com
To: b..sanders@enron.com
Subject: FW: Current Fate of SB 78xx
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 -----Original Message-----
From: =09Jonathan Thomas <jthomas@saybrook.net>@ENRON =20
Sent:=09Monday, September 10, 2001 8:59 PM
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Subject:=09RE: Current Fate of SB 78xx


Based on numerous discussions with members and  staff in Sacramento, the be=
st speculation on the status of the SCE bailout  legislation is as follows.=
  The Senate is reviewing the amended SB 78xx  approved by the Assembly las=
t Thursday.  They will not approve it as  is.  Instead, they will "hijack" =
one of a number of Assembly bills on  energy currently before the Senate fo=
r concurrence.  "Hijacking" means  gutting a bill and substituting in langu=
age on related but different  matters.  Hence, they would in this instance =
keep the energy theme but  change the bill in question to an SCE bailout bi=
ll, one that  largely resembles the Polanco-Sher bill approved by the Senat=
e in July.   The hijacked bill will deal with the bailout itself (DCR for n=
on-generator  creditors, etc.) and the conservation easements, but will str=
ip out other  elements that differ from the Polanco-Sher bill like direct a=
ccess,  renewables, lowering the rate payer base to 20 kwh, etc.  The direc=
t access  and renewables elements might or might not be added on to some ot=
her energy  bills currently before the Senate.  The rate payer threshold wi=
ll be  included in the hijacked bill and will likely be increased from 20 k=
wh to 125  kwh (note that the latter would be a reduction from the original=
 500 kwh level  in the Polanco-Sher bill).
=20
The Senate will send the hijacked bill back to  the Assembly, probably on W=
ednesday.  The Assembly will have the choice of  taking it or leaving it OR=
 calling for a conference committee to work it out  before session ends mid=
night on Friday.  The latter is the likely  alternative, setting up round t=
he clock all nighters for the conferees through  Friday.  If the conference=
 committee reaches consensus, the resulting bill  will have to be approved =
by both houses before sending it to the Governor.   If the conferees think =
there's a deal  there but they need more time, they can ask the Governor to=
 extend the session  into next week.  That scenario seems unlikely.  The me=
mbers  want to  either pass or reject the bill this week and get out of  Do=
dge.
=20
If there is no hope of consensus this week, the  bill will likely die at th=
at point and the bailout will be history.  The  Governor can try to prolong=
 things to give him more time to persuade  members to pass the bill by eith=
er extending the session into next week or by  adjourning the session and c=
alling for a Third Extraordinary Session next week  or at some later date. =
 The Senate and Assembly would be compelled to go  into session, but just a=
s with a normal session, individual members would not be  compelled to atte=
nd.  If there were either (1) not enough members  present for a quorum or (=
2) not enough "yes" votes present even if there is a  quorum, the bill dies=
.
=20
I emphasize again that this is all conjecture  at this point (albeit reason=
ably informed) and that things could change  dramatically at any time.  I'l=
l keep you posted as things play out day to  day this week.  Please feel fr=
ee to give me a call with any  questions.
=20
JT