Sue Mara and I joined representatives of ABAG, New West, New Energy, Green
Mountain Energy and Commonwealth in a series of meetings with Commissioners
and advisors on the two orders set for Thursday, June 28 on PX credits and
direct access.

Republican Commissioners Bilas and Duque are very unhappy and cynical about
their chances of reversing the order suspending direct access.  They do feel
that the discussion about the PX credits and the limitation of recovery of
the credits to billing credits can be bifurcated and postponed to another
decision at a later date.  Procedural issues have arisen related to giving
public notice of any amendments, but all the offices gave some indication
that the delay in considering this issue was a 90% + possibility.

On direct access itself, Brown, the swing vote, repeatedly asked us to help
him by getting the legislature to pass a direct access bill.   He will vote
for the suspension unless the legislature acts or the administration
(Davis/Angelides) changes its mind.  The same message came from the other
offices.  Notwithstanding the ongoing global settlement discussions, I
recommend that we work with all the ESPs and the direct access coalition to
try to get a separate D/A bill passed immediately.  All of the other ESPs
are trying to reach Burton, Bowen, Angelides (the Treasurer) and Davis, in
that order, to try to get something to break loose.

What is the status of discussions in Sacramento?  We made a strong pitch for
the Commission to grant a delay in the vote on Thursday, and one is
possible, especially if we have lots of direct access supporters asking for
more time at the Commission and in Sacramento.  They all understand that the
bonds will not be issued in the next three weeks.  Our window of time in
which to act is likely to be the end of July, if the Treasurer and the Gov
try to rush the issuance of the bonds.

Can we convene a conference call to coordinate any remaining options for a
quick rifle shot bill on direct access?

Let's talk tomorrow.

Mike Day