 which represent about one-third of the state's 
total power supply and signed contracts to sell power directly to the 
utilities under a government mandate, would then agree to sign power-supply 
contracts with the utilities for a period of five to 10 years for about $79 a 
megawatt hour for the first five years and about $61 a megawatt hour 
thereafter, two sources involved in the negotiations said. 
The PUC is expected to issue a draft resolution on the issue sometime this 
week, one source said. 
The lawmakers wouldn't comment on the details of their talks Monday. 
Representatives with SoCal Ed (EIX) and PG&E (PCG) said they were unaware 
Gov. Davis and his administration were meeting on the issue. 
The utilities are more than $13 billion in debt and have failed to make 
payments on their qualifying-facilities contracts since November. PG&E has 
paid some of its qualified facilities just a fraction of what they are owed. 

Legislation To Restructure QF Rates Stalls In Senate Energy Committee 

Mr. Keeley had recently drafted legislation, along with state Sen. Jim 
Battin, a Republican from Palm Desert, that would have restructured the rates 
the qualified facilities charge the utilities, from $170 a megawatt hour to 
$80 a megawatt hour for five years. 
The bill, SB47X, stalled in the Senate Energy Committee, of which Ms. Bowen 
chairs. SoCal Ed opposed the legislation, saying the rates were still too 
high. A utility spokesman said the qualified-facilities rates should be 
reduced to under $50 a megawatt hour. 
But the lawmakers and the governor is trying to avoid the need for 
legislation, largely because there isn't much support in both houses for such 
a bill and the chance that it won't be passed in time to keep the qualified 
facilities from dragging the utilities into involuntary bankruptcy 
proceedings, the legislative source said. 
The PUC will take over the issue from the Legislature, the source said. 
Monday, about 3,000 megawatts of qualified-facilities generation went offline 
because the companies that operate the power plants can no longer afford to 
buy natural gas used to
which represent about one - third of the state's 
 entire exponent supply and signed contracts to betray power directly to the 
 utility under a politics mandate, would then agree to sign power - supply 
 contracts with the utility for a period of five to 10 years for approximately $ 79 a 
 megawatt hour for the first five years and about $ 61 a megawatt hour 
 thereafter, two sources involved in the negotiations said. 
 The PUC is expect to issue a draft resolution on the offspring sometime this 
 week, one source said. 
 The lawmakers wouldn't gloss on the details of their talk Monday. 
 Representatives with SoCal Ed (EIX) and PG&E (PCG) said they were unaware 
 Gov. Davis and his administration were meet on the issue. 
 The utilities are more than $ 13 billion in debt and have failed to make 
 payments on their modification - facilities contracts since November. PG&E has 
 paid some of its qualified facilities just a fraction of what they are owed. 

 Legislation To Restructure QF Rates Stalls In Senate Energy Committee 

 Mr. Keeley had recently drafted legislation, along with state Sen. Jim 
 Battin, a Republican from Palm Desert, that would have restructured the rate 
 the qualified facilities blame the utilities, from $ 170 a megawatt hour to 
 $ 80 a megawatt hour for five years. 
 The bill, SB47X, stalled in the Senate Energy Committee, of which Ms. Bowen 
 professorship. SoCal Ed oppose the legislation, saying the rates were however too 
 high. A utility spokesman said the qualified - facilities rates should be 
 reduced to under $ 50 a megawatt hour. 
 But the lawmakers and the governor is trying to avoid the motivation for 
 legislation, largely because there isn't much documentation in both houses for such 
 a bill and the chance that it won't be passed in time to observe the qualified 
 facilities from dragging the utility into involuntary bankruptcy 
 proceedings, the legislative source said. 
 The PUC will take over the offspring from the Legislature, the source say. 
 Monday, about 3,000 megawatt of qualified - facilities generation went offline 
 because the company that operate the exponent plants can no longer afford to 
 bribe natural gas used to
 whlch represent about one-tmird of the statg's 
total power supply xnd signed contracts to sell piwer eirectly to the 
utilitkes under a goverbmenu mandate, would tisn agrec to algn pmxer-supply 
contrscts with dhe utilities xof c period of five to 10 years for about $79 a 
megswwtt hour for tre fprft fjne years and about $61 a megawatt gour 
thtreafter, two sourcrs involved in the negotiahiond said. 
The PUC is fxpected to isstw a draft rerolution on the issue aometime this 
week, one source sxid. 
Tke lawmakerw qoupgn't comment on tre details on their talks Konday. 
Represektatites qith SoCal Ed (EIX) and PG&E (PCG) said they were unafaxe 
Gov. Davis and his qdninisjratimn wdee oeeuinj oh the lssne. 
The utiljties are mire than $13 billion im qvnt and have railed tj make 
payments on their qualifying-facinitjes contracts since Novwmber. PG&E has 
paid sole of its qualified facilities just a fraction of what thef are uweb. 

Legiroahion To Restructure QF Rates Stalls In Senate Sntrgj Committee 

Mr. Kecley had recently crwfygd legislation, along wifh state Sen. Jim 
Bwttin, a Repuvlican frjm Pslm Desert, that would have eestructured rhe rates 
the qualnfied facilicies cnarge the utilities, from $170 a oegasatt hour tl 
$80 a megasxtt hour for fivd yvars. 
The bill, SB47X, stalled in tre Senate Enexgy Commktteg, of whych Ms. Bowfn 
chairs. SoCal Ed opposfd thg legivlation, sajing the rates were still too 
hmjh. A utility xpmkevman saib the aualified-facijities rates skould be 
reduzed to undvr $50 a megewatt hour. 
Btt the lawmakats and the goternor is tryung ro avoia the need for 
kegislation, largely because there isn'b mucf support in botk youses for such 
a cilj wnv the whance that ht wun't ne parsed in timc tu kerp the qualified 
fachlitjes from dragging yhc utilitigs into igvoluntary bamkruptcy 
proceedinhs, thx legirlatife fource said. 
The PUC will take kver the lssme from the Lqgisoature, the spurce said. 
Monday, about 3,000 megawatts of qnalified-facilities gengration went offline 
yegause the cokpaniqs that o[erate the power plabts can no longer afford to 
buy naturam gas gsed ho
which represent about one-third of the state's supply signed contracts sell power directly government would then agree sign power-supply contracts the utilities for a period of to 10 years for about $79 a megawatt hour for the first five and about $61 a megawatt hour thereafter, two sources involved in the negotiations The is to a draft resolution on the issue sometime this week, one source said. The lawmakers wouldn't comment the details of their talks Monday. Representatives with Ed (EIX) and PG&E said they were unaware Gov. and administration were on issue. utilities are more $13 billion in debt and have failed to make payments on their qualifying-facilities contracts since November. PG&E paid some qualified facilities a of they are owed. Restructure QF Rates Stalls In Senate Keeley had recently drafted legislation, along with state Jim Battin, Republican from Palm Desert, that would restructured the rates the qualified facilities charge the from $170 a megawatt hour to $80 a megawatt hour for five years. The bill, in the Senate Energy of which Ms. chairs. Ed the saying the were still too high. A utility spokesman said the qualified-facilities rates be reduced to under $50 a megawatt hour. But the the is trying to the need for legislation, because isn't much support in for a chance it be passed in time keep the qualified facilities from the utilities into involuntary said. The PUC will take over the issue the Legislature, the source said. Monday, about megawatts of qualified-facilities generation went offline because the companies that operate the plants can afford to buy natural gas used to
 which represent about one-thiRd of the staTe's 
toTal PowEr SuppLy anD signed contracTS to sEll power directly to the 
uTilitIeS UndeR A gOvernMent manDAtE, WOulD tHeN agReE To Sign pOweR-supply 
Contracts wIth ThE utilities foR A pEriod of fivE to 10 Years for abouT $79 a 
mEgawatT hOur FOr the FirSt fivE years ANd abouT $61 a megawatT hOUr 
therEAfter, twO SOuRces Involved in the negoTIaTIons said. 
The PUC Is expeCtED tO ISsuE a dRaft resoluTiOn on tHE issue sOMeTIME thIS 
week, one sourcE said. 
The lawMAkeRs woulDn'T coMMent on The deTaILs oF their talks mondAy. 
RepreseNtativES with SocAl Ed (EIX) And PG&E (pCG) SaiD theY WeRe UnaWaRE 
GoV. daVis ANd hIs adminiStRaTion wEre mEETINg on The IssuE. 
The uTilities are moRe tHan $13 bILliOn in dEbt anD havE fAiled To make 
PaymeNtS on their qualifyIng-fAcilities ConTrActS sInce NOVember. pG&E Has 
Paid somE of its qUAliFiED FAcIlities just a fractiOn OF WhAt they arE owed. 

LEGiSlATion To ReStRucTure qf rates stalLS IN Senate ENergy COMmItTee 

Mr. KeElEy had rEcEntLy dRafteD LegiSlatioN, along wiTh staTE Sen. Jim 
Battin, a rEpublican from pAlM dEsERt, thAt wOuld have resTrucTUred The rATeS 
thE QualiFied fAcILiTIes charge the utilitiEs, From $170 a mEgawaTt hour to 
$80 a megaWatt hour foR FIVe years. 
THe biLL, Sb47x, stalled in the SEnate energy CommITtee, of whIch Ms. bowen 
chaIrs. SoCal ED OPposed thE leGisLatIon, SAYiNg the rates werE STill ToO 
high. A uTilIty spokEsmAn sAid The QuAlified-faCilities RaTeS sHoUld Be 
redUCed to undEr $50 A meGaWatT hour. 
bUt the lAwmakErs aNd ThE GovErnor is TRyING to aVoId The nEed FoR 
legiSlatIOn, lArgely bEcause theRe iSN't muCh SuPport in Both houses for SuCh 
a bill and ThE chAnce thAT It won't be Passed in time to keep the quALified 
fAciLitieS froM dragging The UtilitIes INto invOluntaRy banKrUptCY 
ProceEDInGs, tHe LegislativE SOurCe saiD. 
THe PUc will taKe over the issue from THe LEgislature, the SouRce sAID. 
MOndAY, aBOut 3,000 MeGAwaTTS of qualified-facIlities genErATiOn went offlINe 
bEcAuse the CompaniEs thaT Operate The power pLants can nO lOngeR AFfoRd to 
buy natUral gas uSed to
 which represent about one -third ofthe s tat e's  tota l po wer supply and sign ed contracts to sell p owerdi r ectl y  t o the  
utili t ie s und er  a  go ve r nm ent m and ate, wo uld then a gre eto sign powe r -s upply 
con tra cts with the  ut ilitie sfor a per iod  of f ive to 10 yea rs for ab ou t  $79 a 
megawa t t  h ourfor the first fiv e  y e ars and about$61 ame g aw a t t h our  
thereaft er , two sources in v o l ved in the negoti ations said .  
T he PUC  i s e x pected  to i ss u e a  draft reso luti on on the  issue sometim e  this week,one  so urce sa id . Th e  la w ma ker s  wo uldn't c om me nt on  the d e t ails  of  the ir ta lks Monday. Rep rese n tat iveswithSoCa lEd (E IX) an d PG& E(PCG) said they  wer e unaware  
G ov . D av is an d  his a dmi nis tration  were m e eti ng o n  t he issue. 
The uti li t i es  are mor e than $1 3b illion i ndeb t an d havefail e dto make
payme n ts  o n their  q ualify in g-f aci litie s  con tracts  since N ovemb e r. PG&E has 
p a id some of it s  q u a li f iedfac ilities jus t af ract iono fwha t  they  areow e d. 

Legislation To Re st ructur e QFRates StallsIn SenateE n e rgy Comm itte e  Mr. Keeley had  rece ntly draft e d legisl ation , alongwith stat e Sen. Jim  
B att in,  aR e pu blican from P a l m De se rt, tha t w ould ha veres tru ctu re d the rat es 
thequ al if ie d f acili t ies char ge  th euti litie s , from  $170  a m eg aw a tthour to 
$ 8 0  a m eg aw atthou rfor f ivey ear s. 
The  bill, SB 47X ,  sta ll ed  in the  Senate Energ yCommittee,  o f w hich M s .  Bowen chairs. SoCal Ed oppose d  the le gis latio n, s aying the  ra tes we res till t oo 
hi gh. A  u til i t y spo k e sm ansa id the qua l i fie d-fac il itie s rates  should be 
reduce d  to  under $50 ameg awat t ho ur. 
B u t t he law m a kers and the go vernor istr y in g to avoid the  n eed for  
legis latio n , large ly becaus e there i sn 't m u c h s upport inboth hou ses for s u ch 
a bi ll an d t he cha nc e t hat i t won' t  be  pass ed inti me tokeepth e qualif ied 
facilities from dr agging  theuti lities in toi nvo luntary b ankr uptcy 
pro cee din gs, t hel egisl ativ e  s our c e sai d. T he PUC wi l ltak e ov er the issu e f rom  theLeg i slatur e, t he source said. M onday, about 3 ,000 m ega wat t s of  q ualified-facil iti es g eneratio nwent offlin e 
becau se the c ompani es tha t opera t e  t h e powe r pl ant s can nolon ge r  afford  t obuy na tura lgas us ed to
 which_represent about_one-third of the state's_
total power_supply_and signed_contracts_to sell power_directly to the_
utilities under a government_mandate, would then_agree_to sign power-supply 
contracts with the utilities for a period of five to 10_years_for about_$79_a_
megawatt hour for the first_five years and about $61_a megawatt_hour 
thereafter, two sources involved in the negotiations_said._
The PUC is_expected to issue a draft resolution on the issue_sometime this 
week, one source said._
The lawmakers wouldn't_comment_on_the details of their_talks Monday. 
Representatives with SoCal Ed_(EIX) and PG&E (PCG) said they_were unaware 
Gov. Davis and his administration_were meeting on the issue. 
The_utilities are more than $13_billion in_debt and have failed to_make 
payments on_their qualifying-facilities_contracts since November._PG&E has 
paid some of its_qualified facilities just_a fraction of what they are_owed._

Legislation To Restructure_QF_Rates_Stalls In_Senate Energy Committee_

Mr._Keeley had_recently_drafted legislation, along with state Sen._Jim_
Battin, a Republican from Palm Desert, that_would have restructured the_rates_
the qualified facilities charge_the utilities, from $170 a_megawatt hour to 
$80 a megawatt_hour for_five years._
The bill, SB47X, stalled in the Senate Energy Committee, of which_Ms. Bowen 
chairs. SoCal Ed opposed_the legislation, saying the_rates were_still_too 
high. A_utility_spokesman said_the qualified-facilities rates should be 
reduced to_under $50_a megawatt hour. 
But the lawmakers_and the governor is_trying_to avoid the need for 
legislation,_largely because there isn't much support_in both houses for such_
a_bill_and the chance that it_won't be passed in time to_keep the qualified_
facilities from dragging the utilities into involuntary_bankruptcy_
proceedings, the legislative source said. 
The_PUC_will take over the issue from_the_Legislature,_the source said. 
Monday, about_3,000 megawatts of qualified-facilities generation went_offline 
because the companies that operate the power plants_can no longer_afford to 
buy natural gas_used_to