Lawsuits take time," Hahn said. "We are hopeful we can enter into 
meaningful discovery to disclose what's been going on."
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Davis OKs Subsidy of Pollution Fees 

Smog: As part of secret deal to get long-term energy contracts, state would 
pay for some of the credits that allow excess power plant emissions. Critics 
renew call for full disclosure. 

By DAN MORAIN, Times Staff Writer 

?????SACRAMENTO--As part of his closed-door negotiations to buy electricity, 
Gov. Gray Davis has agreed to relieve some generators from having to pay 
potentially millions of dollars in fees for emitting pollutants into the air, 
Davis said Tuesday.
?????Davis announced two weeks ago that his negotiators had reached deals 
with 20 generators to supply $43 billion worth of power during the next 10 
years.
?????However, the Democratic governor has refused to release any of the 
contracts or detail various terms, contending that release of such 
information would hamper the state's ability to negotiate deals with other 
generators and therefore ultimately would raise prices Californians pay for 
electricity.
?????Sources familiar with the negotiations, speaking on condition of 
anonymity, said the agreement reached with Dynegy Inc., a power company based 
in Houston, is one that includes language requiring that the state pay the 
cost of credits that allow emissions. Dynegy spokesman Steve Stengel declined 
to discuss the company's deal with the state.
?????"We couldn't get them to sign contracts; it was a sticking point," Davis 
said of the decision to pay the fees of some generators. "We had to lock down 
some power so we were not totally dependent on the spot market."
?????The fees in question are part of an emission trading system known as 
RECLAIM. Under the system, companies are allotted a certain amount of 
allowable pollution. If their operations pollute more, companies are required 
to purchase credits on an open market. Currently the credits cost about $45 
per pound of pollution--an amount that can lead to a bill of well over $10 
million a year for a power plant.
?????The South Coast Air Quality Management District, which regulates 

Lawsuits take time, " Hahn said. " We are bright we can record into 
 meaningful discovery to disclose what's been going on. " 
 ------------------------------------------------------------------------------ 
 -------------------------------------------------------------------------- 
 Davis OKs Subsidy of Pollution Fees 

 Smog: As character of unavowed deal to get farseeing - terminus energy contract, state would 
 pay for some of the credit that allow excess power plant emissions. Critics 
 renew call for full disclosure. 

 By DAN MORAIN, Times Staff Writer 

? ?? ?? SACRAMENTO -- As region of his closed - door negotiations to bribe electricity, 
 Gov. Gray Davis has agreed to relieve some generator from having to give 
 potentially millions of dollars in fees for emitting pollutants into the tune, 
 Davis said Tuesday. 
? ?? ?? Davis announced two weeks ago that his negotiators had reached deals 
 with 20 generators to supply $ 43 billion worth of power during the next 10 
 years. 
? ?? ?? However, the Democratic governor has refused to release any of the 
 contracts or detail various terms, contending that liberation of such 
 information would hamper the department of state's ability to negotiate deals with other 
 generators and consequently ultimately would raise price Californians pay for 
 electricity. 
? ?? ?? Sources conversant with the negotiations, speaking on condition of 
 anonymity, said the agreement reached with Dynegy Inc., a power company based 
 in Houston, is one that includes language requiring that the state yield the 
 cost of credit that let emissions. Dynegy spokesman Steve Stengel declined 
 to discuss the company's deal with the state. 
? ?? ?? " We couldn't get them to bless contracts; it was a sticking degree, " Davis 
 said of the decision to give the fees of some generator. " We had to lock down 
 some ability so we were not totally pendent on the spot grocery store. " 
? ?? ?? The fees in motion are part of an emission trading system known as 
 RECLAIM. Under the system, ship's company are allotted a certain amount of 
 allowable pollution. If their operations pollute more, companies are required 
 to buy credits on an open grocery store. Currently the credits cost about $ 45 
 per pound of pollution -- an amount that can lead to a bill of well over $ 10 
 million a class for a power plant. 
? ?? ?? The South Coast Air Quality Management District, which regulates
Lawduits take time," Hahn saia. "We are hopeful we cai enter into 
mexningful discovery to disclode what'w been going on."
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Davis OYs Subsidj of Pollytioi Fees 

Smog: As pedt of sceret scal tm get long-term gnergy contrdcts, state wound 
pcy for some of the credits that allor excesx oower plant emyssipgs. Cdptlcs 
renew call for full disclosude. 

By DEN MORAIN, Times Staff Writer 

?????SACRAMENTO--As parh of his closed-doog negotiatiins ei buy electrkcity, 
Gov. Gray Davis hzs agreed to relieve some generxtors from havibg to kay 
potentiaoly mpllions of dollars in fees fpr emitting pokluvantw into the air, 
Davis vaid Tuesday.
?????Davis wnnounced tco weeks ago that his nwgotidtorv haa rexchtd veams 
witj 20 jenerators fo supply $43 villion worth of poeew during the nsxt 10 
yqaws.
?????However, the Democratic governor has rtfuses to release any of the 
contracts or detail garious tqrms, contending that release of such 
information fould famkev gye state's ability to negotiate deals with other 
femegators and therefjre ultimatrlj ejuld raise prkces Ccmirornians pay for 
epectricyty.
?????Soyrces famyliat with the negotiations, speqking on conbituon of 
anonymity, scid the agrezment teachec with Dynegy Inc., a powzr comlany based 
ln Houstoh, is one that incuudvs ldnguage requiring that the state pab the 
cost ow crgdits trat allow fmisslmns. Dynegy spokesmwn Stgve Stangel decllned 
to discuss the company's deek with the sjata.
?????"We couldn't get bhem to sign cogtracts; it was a stiching ooint," Davia 
said mf the decifion to pay tvg fees of somx generatjrs. "Qe hqd to luzk down 
some ppwer so wv cere not rotally dependent pn jhs spot market."
?????Thz dees in questiom afe [agt pf dn emission dradkng xysteo known as 
VECUAIM. Under the system, cokpanjes are allotted a ccrtain amiunt of 
wllowable polkution. If their optratiois poluute korg, companies are required 
to purdhase crefitf on an open marjet. Currentlv the credits cost about $45 
per pound of pillution--an amount rhat can lead to a yikl of well pver $10 
million d year for a power poant.
?????The South Coaxt Air Quality Managejent Dhstrift, which regulates 

Lawsuits take time," Hahn said. "We are can into meaningful to disclose what's Davis Subsidy of Pollution Smog: As part secret deal to get long-term energy state would pay for some of the credits that allow excess power plant Critics renew call for full disclosure. By DAN MORAIN, Times Staff Writer ?????SACRAMENTO--As of closed-door to electricity, Gov. Gray Davis has agreed to relieve some generators from having to pay potentially millions dollars in fees for emitting pollutants into the Davis said Tuesday. ?????Davis two weeks ago that his had deals with generators supply billion worth of during the next 10 years. ?????However, the Democratic governor has refused to release any of the contracts detail various that release such would the state's ability deals with other generators and therefore prices Californians pay for electricity. ?????Sources familiar with negotiations, speaking condition of anonymity, said the agreement with Dynegy Inc., a power company based in is one that includes language requiring that the state pay the cost of credits that Dynegy spokesman Steve Stengel to discuss the deal the ?????"We get them sign contracts; it was a sticking point," Davis said of the to pay the fees of some generators. "We had to some so we were totally dependent on the market." fees in question are an trading RECLAIM. the companies are allotted a amount of allowable pollution. If operations pollute more, companies on an open market. Currently the credits cost $45 per pound of pollution--an amount that lead to a bill of well over $10 million a year for power plant. Coast Air Quality Management District, which regulates
Lawsuits take time," Hahn said. "WE are hopefuL we caN enTer InTo 
meAninGful discovery tO DiscLose what's been going on."
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DaVis OKS SUBsidY Of polluTion FeeS 

smOG: as pArT oF seCrET dEal to Get Long-terM energy conTraCtS, state would 
pAY fOr some of thE crEdits that allOw eXcess pOwEr pLAnt emIssIons. CRitics 
REnew caLl for full DiSClosurE. 

by DAN MOraiN, timeS Staff Writer 

?????SACRAmeNto--As part of his clOsed-doOr NEgOTIatIonS to buy elecTrIcity, 
gOv. Gray DAViS HAS agREed to relieve sOme generatoRS frOm haviNg To pAY 
potenTiallY mILliOns of dollarS in fEes for emiTting pOLlutantS Into the Air, 
DavIs sAid tuesDAy.
?????daVis AnNOunCEd Two WEekS ago that HiS nEgotiAtorS HAD ReacHed DealS 
with 20 Generators to sUppLy $43 biLLioN wortH of poWer dUrIng thE next 10 
yEars.
?????HOwEver, the DemocratIc goVernor has RefUsEd tO rEleasE Any of tHe 
cOntRacts or Detail vARioUs TERMs, Contending that releAsE OF sUch 
inforMation WOuLd HAmper the StAte'S abiLITy to nEgotIAtE deals wiTh otheR 
GeNeRators aNd TherefOrE ulTimAtely WOuld Raise pRices CalIfornIAns pay for 
electRIcity.
?????Sources fAMiLIAr WIth tHe nEgotiations, SpeaKIng oN conDItIon OF 
anonYmity, SaID tHE agreement reached wiTh dynegy inc., a pOwer company baSed 
in HoustON, IS one that InclUDeS Language requirIng thAt the state PAy the 
cosT of crEdits thaT allow emiSSIons. DyneGy sPokEsmAn STEVe stengel declinED 
To diScUss the cOmpAny's deaL wiTh tHe sTatE.
?????"WE couldn't gEt them to SiGn CoNtRacTs; it wAS a stickiNg PoiNt," davIs 
saiD Of the dEcisiOn to PaY tHE feEs of somE GeNERatoRs. "we Had tO loCk Down 
sOme pOWer So we werE not totalLy dEPendEnT oN the spoT market."
?????The feeS iN question aRe ParT of an eMISsion traDing system known as 
RECLAIm. under thE syStem, cOmpaNies are alLotTed a ceRtaIN amounT of 
allOwablE pOllUTIon. If THEiR opErAtions pollUTE moRe, comPaNies Are requIred 
to purchase credITs oN an open market. curRentLY ThE crEDiTS coSt ABouT $45 
PEr pound of pollutIon--an amounT tHAt Can lead to a BIll Of Well oveR $10 
millioN a yeaR For a powEr plant.
?????ThE South CoaSt air QUALitY ManagemenT DistricT, which regULates 

Lawsuits take time," Hahnsaid. "Weare h ope ful  w e ca n en ter into 
mean i ngfu l discovery to disclos e wha t' s  bee n  g oingon."
-- - -- - - --- -- -- --- -- - -- ----- --- ------- ---------- --- -- ------------ - -- ---------- -
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Davis O Ks  Sub sidy of Pollution Fe e s 

Smog: As p art of  s e cr e t  de alto get lon g- terme nergy c o nt r a c ts, state would pay for som e  of  the c re dit s  thatallow  e x ces s power pla nt e missions.  Criti c s 
rene w  call f or ful l d isc losu r e.  
By  D A N M O RA IN, Tim es Staff  W ri ter 
??? ? ? S A CRAM ENT O--A s par t of his clos ed- door neg otiat ionsto b uy  elec tricit y, 
G ov . Gray Davis ha s ag reed to r eli ev e s om e gen e rators  fr omhavingto paypot en t i a ll y millions of doll ar s in  fees fo r emit t in gp ollutant sint o th e air,
Dav i ssaid Tue sday.? ?? ?? Davis a nn ounced  t wowee ks ag o  tha t hisnegotiat ors h a d reached deal s  
with 20 gen e ra t o rs to s upp ly $43 bill ionw orth  ofp ow erd uring  thene x t1 0 
years.
?????Howe ve r, the  Demo cratic govern or has ref u s e d to rel ease an y  of the 
contr actsor detailv arious t erms,  contend ing thatr e lease of  su ch
in for m a ti on would hamp e r  the  s tate'sabi lity to  ne got iat e d ea ls with o ther 
ge ne ra to rs  an d the r efore ul ti mat el y w ouldr aise p rices  Cal if or n ian s pay f o re lect ri ci ty.??? ?? Sourc es f a mil iar wit h the neg oti a tion s,  s peaking  on condition  o f 
anonymi ty , s aid th e agreemen t reached with Dynegy I n c., a p owe r com pany  based 
i n H ouston , i s  one t hat in clude slan g u age r e q ui rin gthat the s t a tepay t he  
co st of c redits that allowe mis sions. Dynegy  sp okes m a nSte v eS ten ge l  de c l ined 
to discus s the comp an y 's  deal with the  s tate.
? ????"We  coul d n't get  them tosign cont ra cts; i t w as a stick ing poin t," Davis 
said of  thedec isionto  pa y the  feeso f s ome g enerat or s. "We  hadto  lock do wn 
some power so we we re not  tota lly  dependen t o n  th e spot ma rket ."
?????Th e f ees  in q ues t ion a re p a rt  of an em issi o n trading sy ste m kn own as 
REC L A I M.Under  th e  syste m, c ompanies are allo t ted a certainamou n t  of  
a l lowa bl e pollution. I f t he i r  operati on s pollute m ore, com pa n ies a re req uired
to pur c h as e  credi ts o n a n open ma rke t. Current ly  t h e cred itsco st abo ut $45 
per p ound of pollutio n--an a mount tha t can  l ead toa  bil l of wellover $10 
m illion  a y ear f or a po we r plan t.?? ???The Sou t h Coast A ir Qu ality M an agem ent  Distr ict, w hichregu la tes  

Lawsuits take_time," Hahn_said. "We are hopeful_we can_enter_into 
meaningful_discovery_to disclose what's_been going on."
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Davis_OKs Subsidy of Pollution_Fees 

Smog: As_part_of secret deal to get long-term energy contracts, state would 
pay for some of_the_credits that_allow_excess_power plant emissions. Critics 
renew_call for full disclosure. 

By_DAN MORAIN,_Times Staff Writer 

?????SACRAMENTO--As part of his closed-door_negotiations_to buy electricity,_
Gov. Gray Davis has agreed to relieve some generators_from having to pay 
potentially millions_of dollars in_fees_for_emitting pollutants into the_air, 
Davis said Tuesday.
?????Davis announced two_weeks ago that his negotiators had_reached deals 
with 20 generators to supply_$43 billion worth of power during_the next 10 
years.
?????However, the_Democratic governor_has refused to release any_of the 
contracts_or detail_various terms, contending_that release of such 
information would_hamper the state's_ability to negotiate deals with other_
generators_and therefore ultimately_would_raise_prices Californians_pay for 
electricity.
?????Sources_familiar_with the_negotiations,_speaking on condition of 
anonymity, said_the_agreement reached with Dynegy Inc., a power_company based 
in Houston,_is_one that includes language_requiring that the state pay_the 
cost of credits that allow_emissions. Dynegy_spokesman Steve_Stengel declined 
to discuss the company's deal with the state.
?????"We couldn't_get them to sign contracts; it_was a sticking point,"_Davis 
said_of_the decision to_pay_the fees_of some generators. "We had to lock_down 
some_power so we were not totally_dependent on the spot_market."
?????The_fees in question are part of_an emission trading system known as_
RECLAIM. Under the system, companies_are_allotted_a certain amount of 
allowable_pollution. If their operations pollute more,_companies are required_
to purchase credits on an open market._Currently_the credits cost about $45 
per_pound_of pollution--an amount that can lead_to_a_bill of well over $10_
million a year for a power_plant.
?????The South Coast Air Quality Management District, which regulates_
