note reference at bottom to mirant and reliant trying to find 3rd creditor to file v. so cal edison

 -----Original Message-----
From: 	"Bennett Young" <BYOUNG@LLGM.COM>@ENRON [mailto:IMCEANOTES-+22Bennett+20Young+22+20+3CBYOUNG+40LLGM+2ECOM+3E+40ENRON@ENRON.com] 
Sent:	Thursday, September 20, 2001 10:41 AM
To:	Mellencamp, Lisa; Tribolet, Michael
Cc:	CARL EKLUND; John Klauberg
Subject:	The latest from the ABI:

The latest from the ABI:

California PUC Likely to Abandon Electricity Deregulation
California's Public Utilities Commission (PUC) will vote today on a measure that could strip away one of the last vestiges of the state's failed experiment with energy deregulation, which was widely blamed for rolling blackouts and ballooning bills, according to the Associated Press.  Deregulation would be replaced with a system dominated by the governor, a new public power authority and three troubled utility companies. The vote comes as other states are backing away from the experiment that was supposed to revolutionize the energy industry.  Today's vote could wipe out consumers' ability to choose their electricity provider and buy power directly from retailers. T
 rumpeted at its creation in 1996 as a way to stimulate competition and lower electric rates, deregulation foundered after a year of soaring wholesale electrical prices and customer bills, the bankruptcy of the state's number one utility (Pacific Gas & Electric), and energy shortages that led to rolling blackouts.

California Renewable Power Plant Owners Fight Edison Bankruptcy
A bankruptcy proceeding for Edison International's regulated utility subsidiary, Southern California Edison (SoCal Edison), would have severe negative consequences for the renewable energy community and for all Californians, the Renewable Energy Creditors Committee announced yesterday, Dow Jones reported.  The association said it was responding to media reports that other creditors are on the verge of forcing Edison into bankruptcy.  "Such a filing would raise the cost of doing business in California for years to come," the group said.  "Those who finance bonds to carry out capital improvements will place risk premiums on California projects, if it is demonstrated through the bankruptcy of both of the state's largest utilities that default on debt is an acceptable option."

In March, several members of the Renewable Energy Creditors Committee came close to initiating an involuntary bankruptcy proceeding against Edison, but a key court decision and the movement of some funds to the generators staved off the move.  "The committee will not take action for now to force Edison into bankruptcy as long as a legislative solution to take care of back payments and encourage the use of renewable energy remains possible," the committee said.

Long Beach, Power Suppliers May Force SoCal Edison Bankruptcy
The City of Long Beach, Calif., is mulling over a plan to join two large power generators in a move to force California's second largest utility into an involuntary bankruptcy proceeding, Dow Jones reported.  Mirant Corp. and Reliant Energy Inc. have been in contact with the city about joining the two companies to force Southern California Edison (SoCal Edison) into involuntary bankruptcy.  It takes three creditors, who are owed a combined $10,000, to force such a proceeding. Long Beach has a lawsuit against the Edison International unit, claiming it's owed $19 million for power it supplied to the utility in which it was never paid. The council is expected to decide on its next course of action at its meeting next Tuesday.
Mirant and Reliant's top executives said they are trying to recruit one more creditor in hopes of pushing the utility into bankruptcy this week. The companies already have the bankruptcy filing prepared and are looking for one more signature, executives said.  The generators are owed more than $500 million, of the $1 billion SoCal Edison owes to power generators. The companies have also been trying to recruit small power producers, the state's so-called qualifying facilities, to join in an involuntary bankruptcy proceeding.  Ted Craver, chief financial officer for Edison International, said the company would vigorously fight an involuntary bankruptcy proceeding.




Bennett G. Young
One Embarcadero Center, Suite 400
San Francisco, California 94111
(415) 951-1167
byoung@llgm.com


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