. 
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, 