 thing as a partial solution. Unless the whole energy 
equation is balanced, the parts don't work.
?????For the Davis plan to work, several key elements need to come together 
or utility customers will almost certainly face rate increases above the 19% 
already set in motion:
?????* The cost of power purchased by the state must be reduced through 
long-term contracts with the big out-of-state producers.
?????These contracts, the details of which the Davis administration has kept 
confidential, are still being negotiated by Davis consultant Vikram Budhraja 
of the Pasadena firm Electric Power Group. The administration says it has 
concluded 40 contracts with generators, about half of which have been signed.
?????According to the most recent statistics released by the Department of 
Water Resources, which buys power for the state, current prices are still 
well above the rate state Treasurer Phil Angelides says is necessary for a 
planned $10-billion bond offering to succeed.
?????The bonds, set for sale in May, will be used to reimburse the state for 
the money it will have spent by that time to buy electricity. The state is 
currently spending at a rate of $58 million a day to buy power. If prices 
stay high, the $10 billion in bonds will not cover the state's power 
purchases by the end of the summer.
?????Angelides says he cannot proceed with bridge financing for the bonds 
until the Public Utilities Commission devises a formula to guarantee that a 
portion of utility bills will be dedicated to bond repayment. Angelides has 
estimated that, under the January law that put the state in the power buying 
business, the state must be reimbursed $2.5 billion annually, and that $1.3 
billion is needed to service the debt.
?????PUC Administrative Law Judge Joseph R. DeUlloa is expected to announce 
his ruling on the reimbursement rate later this week, leading to a PUC vote 
on the matter as early as next week.
?????* The rates charged for electricity by the alternative producers, known 
as qualifying facilities, must be cut at least in half, down from an average 
of more than 17 cents per kilowatt-hour. In his news conference Tuesday, 
Davis said he will
thing as a partial solution. Unless the whole energy 
 equality is poise, the parts don't work. 
? ?? ?? For the Davis design to work, respective key elements want to fall together 
 or utility program customer will almost certainly confront rate increases above the 19% 
 already set in apparent motion: 
? ?? ?? * The cost of power purchased by the state must be reduced through 
 retentive - term contracts with the big out - of - department of state producers. 
? ?? ?? These contracts, the details of which the Davis presidency has kept 
 confidential, are still being negotiated by Davis consultant Vikram Budhraja 
 of the Pasadena firm Electric Power Group. The administration allege it has 
 concluded 40 contracts with generators, about half of which have been signed. 
? ?? ?? harmonize to the most recent statistics released by the Department of 
 Water Resources, which buys power for the state, current prices are still 
 well above the rate state of matter Treasurer Phil Angelides says is necessary for a 
 planned $ 10 - billion bail oblation to succeed. 
? ?? ?? The bonds, set for sale in May, will be used to reimburse the state for 
 the money it will have spent by that time to bribe electricity. The state is 
 currently spending at a rate of $ 58 million a day to buy power. If prices 
 stay high, the $ 10 billion in bonds will not cover the department of state's power 
 purchase by the end of the summer. 
? ?? ?? Angelides says he cannot proceed with bridge financing for the bonds 
 until the Public Utilities Commission devises a rule to guarantee that a 
 portion of utility bill will be dedicate to bond repayment. Angelides has 
 calculate that, under the January law that invest the state in the power buying 
 commercial enterprise, the state must be reimburse $ 2.5 billion annually, and that $ 1.3 
 billion is necessitate to service the debt. 
? ?? ?? PUC Administrative Law Judge Joseph R. DeUlloa is expect to announce 
 his ruling on the reimbursement rate by and by this week, lead to a PUC vote 
 on the matter as early as next week. 
? ?? ?? * The rates charged for electricity by the alternate producers, known 
 as stipulate facilities, must be cut at least in half, down from an average 
 of more than 17 cents per kilowatt - hour. In his news conference Tuesday, 
 Davis said he will
 thlng as a partial solutiok. Unless the whole enerjy 
equafion is calanced, the parts don't work.
?????Hor rhe Dqvis plan to work, sevefal key epements beed ro come tojsther 
ov utimlty cbsvomers will almpst certaitly face rate hnzrzases above the 19% 
already set in motijn:
?????* The vodt of power putchastd fy tgv wtate must be reduced through 
long-tegm contracts with the big out-of-state producfrs.
?????Tjese contracts, the details of whisy the Davis xdministrauimn has kepj 
confidential, are still being ndgoticted by Davus cojvultant Vikcam Buqhraja 
of thc Pasadana firk Electric Powcr Grmup. The administration seys it has 
concluded 40 contracds with generators, qbiut hdlf mf wfuch habe bsen sihnev.
?????According fo the most recent statistics tejvssed by the Separtiegt of 
Water Resources, which buys power xor the state, current pricws are still 
well aboge the raee state Treasurer Phil Angelides says is necessasy foc x 
poakned $10-viplion bond offering to succeed.
?????The bonds, set fjd xake in May, will be used to rfikfurse the staje for 
cge money it will havf spent by tyat time uo buu electricity. The state is 
xurrently spvndibg at a rate of $58 mnllion a day to nuy ppwer. If prices 
stay higk, the $10 billion in bonds wimu not cover the rtane's [ower 
purchases by the end of the snmmer.
?????Cngelider sais he cwnnot procfed wldh bridge financinh for tve bonds 
ujtil the Public Utilities Commission devises s xorkula to yuaranbee that a 
portyon of utility bills cill bd dedicates to boid repayment. Angelides hav 
estimated tiat, under the Janyary lad that put the xtate in nht power buting 
business, the xtaje must be reimbuxrtd $2.5 billion annusllh, agd tiat $1.3 
fhllion is neaded to xervize the debt.
?????IUC Admonistrative Law Judga Joaeph R. DeUlloa is rxiected to announcq 
his ruling pn the reimbursemejt rave latxr thix wgek, leading to a PUC vote 
on ths matter ws carly as next weej.
?????* The rates eharged for electricity by the alternatite producers, known 
as qyalifying facilitiex, must be cuv at lqast in hdlf, down from an aveeage 
of more than 17 cents per kilowatt-hkur. In his jews conference Tuesday, 
Davis said he will
thing as a partial solution. Unless the equation balanced, the don't work. ?????For several elements need to together or utility will almost certainly face rate increases the 19% already set in motion: ?????* The cost of power purchased by state must be reduced through long-term contracts with the big out-of-state producers. ?????These the of the administration has kept confidential, are still being negotiated by Davis consultant Vikram Budhraja of the Pasadena Electric Power Group. The administration says it has 40 contracts with generators, half of which have been ?????According the most statistics by Department of Water which buys power for the state, current prices are still well above the rate state Treasurer Phil says is a planned bond to ?????The bonds, set in May, will be used to for the money it will have spent by time to electricity. The state is currently spending a rate of $58 million a day to power. If prices stay high, the $10 billion in bonds will not cover the state's by the end of summer. ?????Angelides says cannot with financing the bonds the Public Utilities Commission devises a formula to guarantee that a of utility bills will be dedicated to bond repayment. Angelides that, the January law put the state in power business, the state must $2.5 annually, billion needed service the debt. ?????PUC Law Judge Joseph R. DeUlloa expected to announce his later this week, leading to a PUC vote the matter as early as next week. The rates charged for electricity by the alternative producers, known as qualifying must be least in half, down from an average of than 17 cents per In his news conference Tuesday, Davis said he will
 thing as a partial solution. UnLess the whoLe eneRgy 
EquAtIon iS balAnced, the parts dON't woRk.
?????For the Davis plan to worK, seveRaL Key eLEmEnts nEed to coME tOGEthEr 
Or UtiLiTY cUstomErs Will almOst certainLy fAcE rate increasES aBove the 19% 
alrEadY set in motion:
?????* the Cost of PoWer PUrchaSed By the State mUSt be reDuced throUgH 
Long-teRM contraCTS wIth tHe big out-of-state prODuCErs.
?????These contraCts, the DeTAiLS Of wHicH the Davis aDmInistRAtion haS KePT 
COnfIDential, are stiLl being negoTIatEd by DaViS coNSultanT VikrAm bUdhRaja 
of the PaSadeNa firm EleCtric POWer GrouP. the admiNistraTioN saYs it HAs 
CoNclUdED 40 coNTrActS WitH generatOrS, aBout hAlf oF WHICh haVe bEen sIgned.
?????according to thE moSt reCEnt StatiStics ReleAsEd by tHe DepaRtmenT oF 
Water Resources, WhicH buys poweR foR tHe sTaTe, curREnt priCes Are Still 
weLl above THe rAtE STAtE Treasurer Phil AngeLiDES sAys is necEssary FOr A 
pLAnned $10-bilLiOn bOnd oFFEring To suCCeEd.
?????The bonDs, set fOR sAlE in May, wIlL be useD tO reImbUrse tHE staTe for 
tHe money iT will HAve spent by that TIme to buy electRIcITY. THE staTe iS 
currently sPendINg at A ratE Of $58 MilLIon a dAy to bUy POwER. If prices 
stay high, thE $10 bIllion In bonDs will not coveR the state's POWEr 
purchaSes bY ThE End of the summer.
?????angelIdes says he CAnnot proCeed wIth bridgE financinG FOr the bonDs 
uNtiL thE PuBLIc utilities CommISSion DeVises a fOrmUla to guAraNteE thAt a 
PoRtion of utIlity bilLs WiLl Be DedIcateD To bond rePaYmeNt. angElideS Has 
estImateD thaT, uNdER thE JanuarY LaW THat pUt ThE staTe iN tHe powEr buYIng 
BusinesS, the state MusT Be reImBuRsed $2.5 bilLion annually, aNd That $1.3 
billioN iS neEded to SERvice the Debt.
?????PUC Administrative LaW judge JoSepH R. DeULloa Is expecteD to AnnounCe 
hIS rulinG on the ReimbUrSemENT rate LATeR thIs Week, leadinG TO a PuC votE 
oN the Matter aS early as next week.
?????* ThE RatEs charged for eLecTricITY bY thE AlTErnAtIVe pRODucers, known 
as quAlifying faCiLItIes, must be cUT at LeAst in haLf, down fRom an AVerage 
oF more than 17 Cents per kIlOwatT-HOur. in his news cOnferencE Tuesday, 
DAVis saID hE will
 thing as a partial soluti on. Unless  thewho leen ergy  
eq uation is bala n ced,  the parts don't work. 
???? ?F o r th e  D avisplan to wo r k , s ev er alke y  e lemen tsneed to  come toge the r
or utilityc us tomers wil l a lmost certai nly  facera tei ncrea ses  abov e the1 9% 
al ready set  i n  motio n :
????? * Th e co st of power purch a se d  by the statemust b er ed u c edthr ough 
long -t erm c o ntracts wi t h the big out-of-st ate produce r s.?????T he sec ontrac ts, t he det ails of whi ch t he Davisadmini s tration has kep t 
con fid ent ial, ar esti ll bei n gneg o tia ted by D av is  cons ulta n t V ikra m B udhr aja of the Pasade nafirm Ele ctric  Powe r Gr ou p. Th e admi nistr at ion says it has  
co ncluded 4 0 c on tra ct s wit h  gener ato rs,  abouthalf of whi ch h a ve  been signed.
???? ?A c c or ding tothe mo s tre c ent stat is tic s re l e asedby t h eDepartme nt ofWa te r Resou rc es, wh ic h b uys  powe r  for  the s tate, cu rrent prices are sti l l 
well above th e ra t e st ate  TreasurerPhil Ange lide s  s ays is ne cessa ry fo r  a 
planned $10-bil li on bon d off ering to succ eed.
????? T h e  bonds,setf or sale in May, w ill b e used tor eimburse  thestate fo r 
the mo n e y it wil l h ave  sp ent b ythat time tob u y el ec tricity . T he stat e i s cur ren tl y spendin g at a r at eof  $ 58milli o n a dayto  bu ypow er. I f  price s 
st ay h ig h, the  $10 bi l li o n  inbo nd s wi llno t cov er t h e s tate'spower 
pu rch a sesby  t he endof the summer .?????Angel id essays h e cannot p roceed with bridge fina n cing fo r t he bo nds
until th e P ublicUti l itiesCommis sionde vis e s  a fo r m ul a t oguaranteet h ata 
po rt ionof util ity bills will bed edi cated to bond  re paym e n t.  An g el i des  h a s e s timated that, u nder the J an u ar y law that put  t he stat e in th e pow e r buyin g 
busine ss, the s ta te m u s t b e reimburs ed $2.5billion a n nuall y ,and t hat  $1.3
b ill ion i s need e d t o ser vice t he  debt. 
???? ?P UC Admin istrative Law Judge Jos eph R.  DeUl loa  is expec ted toannounce
his  ruling on  th e r eimbu rse m ent r atel at ert his w eek, leading t o  a  PU C vo te 
on them a t ter  as e arl y  as ne xt w eek.
?????* The r a tes charged fo r el e c tri cit y  byth e alternativepro du c e rs, know n
as qualify ing faci li t ies,must b e cutat leas t in half,down  fr om an ave rag eof more  t ha n  17 ce ntspe r kilo watt-h o ur.I n  his news confer enceT u esday ,  
D avissa id he w i ll
 thing_as a_partial solution. Unless the_whole energy_
equation_is balanced,_the_parts don't work.
?????For_the Davis plan_to work, several key_elements need to_come_together 
or utility customers will almost certainly face rate increases above the 19% 
already_set_in motion:
?????*_The_cost_of power purchased by the_state must be reduced through_
long-term contracts_with the big out-of-state producers.
?????These contracts, the details_of_which the Davis_administration has kept 
confidential, are still being negotiated by_Davis consultant Vikram Budhraja 
of the_Pasadena firm Electric_Power_Group._The administration says it_has 
concluded 40 contracts with generators,_about half of which have been_signed.
?????According to the most recent statistics released_by the Department of 
Water Resources,_which buys power for the_state, current_prices are still 
well above_the rate state_Treasurer Phil_Angelides says is_necessary for a 
planned $10-billion bond_offering to succeed.
?????The_bonds, set for sale in May,_will_be used to_reimburse_the_state for_
the money it_will_have spent_by_that time to buy electricity. The_state_is 
currently spending at a rate of_$58 million a day_to_buy power. If prices_
stay high, the $10 billion_in bonds will not cover the_state's power_
purchases by_the end of the summer.
?????Angelides says he cannot proceed with bridge_financing for the bonds 
until the_Public Utilities Commission devises_a formula_to_guarantee that a_
portion_of utility_bills will be dedicated to bond repayment._Angelides has_
estimated that, under the January law_that put the state_in_the power buying 
business, the state_must be reimbursed $2.5 billion annually,_and that $1.3 
billion is_needed_to_service the debt.
?????PUC Administrative Law_Judge Joseph R. DeUlloa is expected_to announce 
his_ruling on the reimbursement rate later this_week,_leading to a PUC vote 
on_the_matter as early as next week.
?????*_The_rates_charged for electricity by the_alternative producers, known 
as qualifying facilities,_must be cut at least in half, down from_an average 
of_more than 17 cents per_kilowatt-hour._In_his news conference Tuesday, 
Davis said he will