The following is a summary of the Direct Access provisions in the bill language released this afternoon reflecting the deal that Davis cut with Assembly.  Things are very fluid and these provisions could change significantly. 

I was just informed by the large business customers that they just met with the Davis' and Hertzberg's staff and the staff have agreed to amend the DA provisions to make them considerably more favorable for customers and suppliers.  They also said that favorable provisions with respect to self-gen would also be added to the bill. They said that these new amendments could come out as early as tonite or tomorrow morning and that the bill may be heard tomorrow.

Note:  In addition to the DA provisions, the bill also includes provisions that 1) explicitly recognize the PX Credit as part of Edison's undercollection, and 2) permit Edison to pay debts associated with the negative PX credit. (The bill does not authorize Edison to pay power suppliers, however, and leaves that portion of Edison's debt for Edison's management and shareholders to address.)

Summary of Direct Access provisions:

The program would begin January 1, 2003.
It's unclear what would happen to DA between now and January 1, 2003.  Presumably, the decision to suspend, or not, between now and then would stay with the California PUC.
90 days after the effective date of the bill, and every 6 months thereafter, DWR would provide information to the PUC showing the net short position.
Every 6 months, the PUC would hold an open season permitting customers to switch to DA.
20 KW-and-above customers would have 60 days to decide to switch once the PUC has announced the open season; under 20kw customers would have 180 days.
Customers who switch to DA would be responsible for paying 1) the customer's proportionate share of the utility's undercollection and 2) the customer's proportionate share of DWR's receivables (if any) for power previously delivered by DWR (but not yet fully paid for by customers).
In addition, if the number of customers who elect to choose to go DA in the open season exceeds the net short, then DA customers will have to pay their proportionate share of any DWR stranded contract costs.
If the number of DA customers does not exceed the net short position, then no stranded contract cost fees would be assessed.

Best,
Jeff