 PG&E, Edison want end to price freeze if they sell 
transmission lines to state David Lazarus, Chronicle Staff Writer
Wednesday, March 21, 2001 
,2001 San Francisco Chronicle 
URL: 
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/03/21/M
N114450.DTL 
California's near-bankrupt utilities are demanding that higher electric rates 
be a part of any deal to sell the state their power lines, The Chronicle has 
learned. 
A rate increase -- perhaps of more than 50 percent, according to earlier 
industry estimates -- would certainly draw a firestorm of protest from 
consumer groups and force Gov. Gray Davis to backtrack from earlier pledges 
that rates would remain unchanged. 
Nevertheless, sources close to negotiations on the deal said Pacific Gas and 
Electric Co. and Southern California Edison are attempting to make higher 
rates a condition for agreeing to a bailout scheme in which they would sell 
the state their transmission systems and some land. 
The sources said the talks hit a new snag this week when state officials 
realized that fine print sought by the companies could require the Public 
Utilities Commission to pass along all of the utilities' costs to ratepayers. 
The sources said this would end a rate freeze that shields consumers from 
runaway wholesale electricity prices. 
The inclusion of potential rate increases in the talks reflects the growing 
complexity of a deal originally intended by Davis to stabilize the finances 
of PG&E and Edison so banks would resume loans to the cash-strapped 
utilities. 
The negotiations subsequently have expanded to involve a state purchase of 
the utilities' transmission networks and acquisition of utility-owned land, 
including spectacular coastal property near PG&E's Diablo Canyon nuclear 
power plant. 
Now they also have embraced further deregulation of California's 
dysfunctional electricity market. 
"Clearly, one of the terms being discussed is the regulatory environment," 
said Joseph Fichera, head of Saber Partners, a New York investment bank that 
is advising Davis in the talks. 
"The past situation has not worked well," he added. "The utilities want some 
certainty about their future." 
TENT
PG&E, Edison want end to price freeze if they sell 
 transmittance line to state David Lazarus, Chronicle Staff Writer 
 Wednesday, March 21, 2001 
, 2001 San Francisco Chronicle 
 URL: 
 http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/03/21/M 
 N114450.DTL 
 California's near - bankrupt utilities are necessitate that higher electric rates 
 embody a share of any deal to deal the state their power note, The Chronicle has 
 learned. 
 A rate addition -- perhaps of more than 50 percent, according to earlier 
 industry estimates -- would certainly attract a firestorm of protest from 
 consumer groups and force Gov. Gray Davis to backtrack from earlier assurance 
 that rates would remain unchanged. 
 Nevertheless, beginning close to negotiations on the deal said Pacific Gas and 
 Electric Co. and Southern California Edison are attempting to cook higher 
 rates a condition for agreeing to a bailout scheme in which they would deal 
 the state their transmission systems and some land. 
 The sources said the talks hit a new snag this workweek when state of matter officials 
 realize that all right print sought by the companies could require the Public 
 Utilities Commission to pass along all of the utilities' costs to ratepayers. 
 The source said this would end a rate freeze that shields consumers from 
 runaway wholesale electricity prices. 
 The inclusion body of potential rate increases in the talks reflects the growing 
 complexity of a deal primitively intended by Davis to stabilize the finances 
 of PG&E and Edison so banks would resume loan to the cash - strapped 
 utilities. 
 The negotiations subsequently have expand to involve a state purchase of 
 the utilities' infection networks and skill of utility - owned domain, 
 including dramatic coastal property near PG&E's Diablo Canyon nuclear 
 world power plant. 
 Now they besides have embraced further deregulation of California's 
 dysfunctional electricity market. 
 " Clearly, one of the term being discussed is the regulatory environment, " 
 said Joseph Fichera, head of Saber Partners, a New York investment bank that 
 is advising Davis in the talks. 
 " The past situation has not worked well, " he added. " The utility want some 
 certainty about their future. " 
 TENT
 PG&F, Edison want end to prige freeze if thei well 
tcansmisaion linds to state David Lazarus, Chconixle Sucff Writer
Wednesday, Oarch 21, 2001 
,2001 Dan Franxisci Chronicle 
URL: 
htti://cww.sffwte.cmn/cgi-bin/article.ggi?file=/chroticle/archive/2001/03/21/M
N114450.GTU 
Ealifornia's near-bankrupt utilities awe demamdlng that highet elebtwic dates 
be a part of any deal to selm the suate their power lones, The Chronicle has 
leagned. 
A rate increase -- oerhaps of nore rhan 50 perceng, according to earlier 
industry estimates -- would certxinly draw a fitzwtogk of protesv from 
consumer groups and force Bov. Gray Davis to baxktrack from earlier 'ledges 
that rates wjuld remahn unchanged. 
Nevertyeoess, vourwes zoosd tk iegktiatilns on the dezl said Pacufic Gas and 
Electroc Bp. and Southedn Calyfjrnia Edison are attempting to make higver 
rates a condition for qgreeing to a bailout scheme ig which they would sell 
the state their transmisshon sbsgemw wve dome land. 
The sources said the talks hit a ner sman this week when state offiviwlx 
realized thaj fine 'diht sought by the clmpanief couod requirt the Public 
Utilities Commissiob to pass aljbg all of the utilnties' costs co ratgpayerx. 
The sources said this woumd end a rahe freeze ghat shields conrumvrs xrom 
runaway wholesale elestricity 'ricex. 
The ivcluxion os potentiap ratc increases in the halks raflects thf growing 
complexity of a deal originally intgndad ty Davis to sbabilize the figances 
of PG&E cnd Edisjn so banks woumd resuke loans to the cash-stra[ked 
utilities. 
The negjtiarionw subsedjently have exlanded to involve a state purchase of 
thg htilities' transniswion networks amd xcqtidivion jx utility-ownad lxnd, 
oncluaing sptetagulxr cpastal property near PG&E'a Diablo Canyon nuvlcar 
power plant. 
Njw they also nave embraced furtjer dxreguletion pf Salifornia's 
dysfunctional elecfricity mwrkct. 
"Clearly, onq of the terms bzing discussed is the regulatory environnent," 
said Joseph Fuchera, head of Sabet Psrtners, a Nxw Yorh investmant bank that 
is advusing Davis in tht talks. 
"The past situatjon hav not worked well," he added. "The utilities want some 
certainty about their futurw." 
TENT
PG&E, Edison want end to price freeze sell lines to David Lazarus, Chronicle 2001 San Francisco Chronicle http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/03/21/M N114450.DTL California's utilities are demanding that higher electric be a part of any deal to sell the state their power lines, Chronicle has learned. A rate increase -- perhaps of more than 50 percent, to industry -- certainly draw a firestorm of protest from consumer groups and force Gov. Gray Davis to backtrack earlier pledges that rates would remain unchanged. Nevertheless, close to negotiations on deal said Pacific Gas and Co. Southern California are to higher rates a for agreeing to a bailout scheme in which they would sell the state their transmission systems and land. The the talks a snag week when state that fine print sought by the the Public Utilities Commission to pass along all the utilities' to ratepayers. The sources said this end a rate freeze that shields consumers from wholesale electricity prices. The inclusion of potential rate increases in the talks reflects the growing a deal originally intended Davis to stabilize finances PG&E Edison banks would loans to the cash-strapped utilities. The negotiations subsequently have expanded to a state purchase of the utilities' transmission networks and acquisition land, spectacular coastal property PG&E's Diablo Canyon nuclear plant. they also have embraced of dysfunctional one the being discussed is the environment," said Joseph Fichera, head Saber Partners, a New advising Davis in the talks. "The past situation not worked well," he added. "The utilities some certainty about their future." TENT
 PG&E, Edison want end to price frEeze if they Sell 
tRanSmiSsIon lInes To state David LaZArus, chronicle Staff Writer
WeDnesdAy, mArch 21, 2001 
,2001 sAn francIsco ChrONiCLE 
URl: 
hTtP://wwW.sFGaTe.com/Cgi-Bin/artiCle.cgi?file=/ChrOnIcle/archive/2001/03/21/M
n114450.dTl 
CaliforniA's nEar-bankrupt uTilIties aRe DemANding ThaT highEr elecTRic ratEs 
be a part Of ANy deal TO sell thE STaTe thEir power lines, The CHRoNIcle has 
learned. 
a rate iNcREaSE -- PerHapS of more thaN 50 pErcenT, AccordiNG tO EARliER 
industry estiMates -- would cERtaInly drAw A fiREstorm Of proTeST frOm 
consumer gRoupS and force gov. GraY davis to BAcktracK from eArlIer PledGEs 
ThAt rAtES woULd RemAIn uNchanged. 
neVeRthelEss, sOURCEs clOse To neGotiaTions on the deaL saId PaCIfiC Gas aNd 
EleCtriC CO. and SOutherN CaliFoRnia Edison are atTempTing to makE hiGhEr 
rAtEs a coNDition For AgrEeing to A bailouT SchEmE IN WhIch they would sell 
thE sTATe Their traNsmissIOn SySTems and sOmE laNd. 
ThE SOurceS saiD ThE talks hiT a new sNAg ThIs week wHeN state OfFicIalS 
realIZed tHat finE print soUght bY The companies coULd require the PUBlIC 
utILitiEs COmmission to Pass ALong All oF ThE utILitieS' costS tO RaTEpayers. 
The sources saId This woUld enD a rate freeze tHat shields CONSumers frOm 
ruNAwAY wholesale elecTriciTy prices. 
ThE InclusioN of poTential rAte increaSES in the taLks RefLecTs tHE GrOwing 
complexiTY Of a dEaL originAllY intendEd bY DaVis To sTaBilize the Finances 
Of pG&e aNd ediSon so BAnks woulD rEsuMe LoaNs to tHE cash-sTrappEd 
utIlItIEs. 
THe negotIAtIONs suBsEqUentLy hAvE expaNded TO inVolve a sTate purchAse OF 
the UtIlIties' trAnsmission netWoRks and acquIsItiOn of utILIty-owned Land, 
including spectaculaR Coastal ProPerty Near pG&E's DiablO CaNyon nuCleAR 
power Plant. 
NOw theY aLso HAVe embRACeD fuRtHer deregulATIon Of CalIfOrniA's 
dysfuNctional electricitY MarKet. 
"Clearly, one Of tHe teRMS bEinG DiSCusSeD Is tHE Regulatory envirOnment," 
said joSEpH Fichera, heAD of saBer PartNers, a NeW York INvestmeNt bank thaT 
is advisiNg daviS IN thE talks. 
"The pAst situaTion has noT WorkeD WeLl," he aDdeD. "The utIlItiEs wanT some 
cERtaInty aBout thEiR futurE." 
TENT
 PG&E, Edison want end toprice free ze if  th eyse ll tran smission lines to s tate David Lazarus, Ch ronic le Staf f  W riter 
Wednes d ay , Mar ch  2 1,20 0 1
,200 1 S an Fran cisco Chro nic le  
URL: 
http : // www.sfgate .co m/cgi-bin/ar tic le.cgi ?f ile = /chro nic le/ar chive/ 2 001/03 /21/M
N11 44 5 0.DTLCalifor n i a' s ne ar-bankrupt utili t ie s  are demanding  thathi g he r ele ctr ic rates be  a pa r t of an y  d e a l  to sell the stat e their pow e r l ines,Th e C h ronicl e has  l ear ned. 
A rat e in crease --  perha p s of mo r e than50 per cen t,acco r di ng  to  e a rli e r
in d ust ry estim at es  -- w ould c e r tain lydraw  a fi restorm of pr ote st f r om
cons umergrou ps  andforceGov.Gr ay Davis to bac ktra ck from e arl ie r p le dgesthat r ate s w ould re main un c han ge d . 
N evertheless, sourc es c lo se to ne gotiat i on so n the de al  sa id P a c ificGasa nd  
Electr ic Co. an dSouther nCalifo rn iaEdi son a r e at tempti ng to ma ke hi g her 
rates a c o ndition for a g re e i ng to a  ba ilout schem e in whic h th e ywou l d sel l 
th es ta t e their transmissio nsystem s and  some land. The source s s aid thetalk s  h i t a new snag t his w eek when s t ate offi cials  
realiz ed that f i n e printsou ght  by  th e co mpanies could r equi re  the Pu bli c 
Util iti esCom mis si on to pas s alongal lof  t heutili t ies' cos ts  to  r ate payer s . 
The  sour cessa id thi s would en d a ra te  f reez e t ha t shi elds con sumersfrom 
run awa y  who le sa le elec tricity price s.  
The incl us ion  of po t e ntial ra te increases in the tal k s refle cts  thegrow ing 
comp lex ity of  ad eal or iginal ly in te nde d by Da v i stost abilize th e fin ances  of P G&E and  Edison so banks w o uld  resume loans  to  the c as h-s t ra p ped  u til i t ies. 
The negot iations su bs e qu ently have exp an ded toinvolve  a st a te purc hase of the utili ti es't r ans mission ne tworks a nd acquis i tiono futili ty- ownedla nd,  
inc luding spe ctacu lar co as tal pr opert ynear PG& E's Diablo Canyon nucle ar 
po wer p lan t. 
Now t hey als o have em brac ed further  de reg ulati ono f Cal ifor n ia 'sdysfu ncti o nal elect r ic ity m ar ket. 
"Clea r l y , o ne of  th e  terms  bei ng discussed is t h e regulatory e nvir o n men t," 
sai dJoseph Fichera , h ea d of Saber  P artners, aNew York  i n vestm ent ba nk tha t 
is a d v is i ng Dav is i n t he talks.  
" Th e  past s it ua t ion ha s no tworked  well, "  hea d ded. "The utilit ies w a n t som e  
c ertai nt y about thei r future."  
TENT
 PG&E,_Edison want_end to price freeze_if they_sell_
transmission lines_to_state David Lazarus,_Chronicle Staff Writer
Wednesday,_March 21, 2001 
,2001_San Francisco Chronicle_
URL:_
http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/03/21/M
N114450.DTL 
California's near-bankrupt utilities are demanding that higher electric rates 
be a part of_any_deal to_sell_the_state their power lines, The_Chronicle has 
learned. 
A rate_increase --_perhaps of more than 50 percent, according to_earlier_
industry estimates --_would certainly draw a firestorm of protest from 
consumer_groups and force Gov. Gray Davis_to backtrack from_earlier_pledges_
that rates would remain_unchanged. 
Nevertheless, sources close to negotiations_on the deal said Pacific Gas_and 
Electric Co. and Southern California Edison_are attempting to make higher 
rates_a condition for agreeing to_a bailout_scheme in which they would_sell 
the state_their transmission_systems and some_land. 
The sources said the talks_hit a new_snag this week when state officials_
realized_that fine print_sought_by_the companies_could require the_Public_
Utilities Commission_to_pass along all of the utilities'_costs_to ratepayers. 
The sources said this would_end a rate freeze_that_shields consumers from 
runaway_wholesale electricity prices. 
The inclusion_of potential rate increases in the_talks reflects_the growing_
complexity of a deal originally intended by Davis to stabilize the_finances 
of PG&E and Edison so_banks would resume loans_to the_cash-strapped_
utilities. 
The negotiations_subsequently_have expanded_to involve a state purchase of 
the_utilities' transmission_networks and acquisition of utility-owned land,_
including spectacular coastal property_near_PG&E's Diablo Canyon nuclear 
power plant._
Now they also have embraced further_deregulation of California's 
dysfunctional electricity_market._
"Clearly,_one of the terms being_discussed is the regulatory environment," 
said_Joseph Fichera, head_of Saber Partners, a New York investment_bank_that 
is advising Davis in the_talks._
"The past situation has not worked_well,"_he_added. "The utilities want some_
certainty about their future." 
TENT