Auction Doesn't Get Much

A contact of mine at the ISO told me that the auction "didn't get much" and 
the bids weren't "at the Governor's price".  NPR today in SF reported that 
the Governor planned to negotiate the price in the bids (reported to average 
6.9 cents) to a lower number.

PX Stay

CA Court issued a one-week stay preventing the PX from selling the IOUs' 
block forward position (to raise cash) when notified by the Attorney General 
that the Governor may want to obtain the value of the contracts.

Attorney General Orders Exisiting ISO Board to Resign

The CA Attorney General notified the existing, FERC-approved, ISO Board 
Members by letter on Wednesday (1/24) that he had filed a complaint in court 
and expected each of them to tender their resignation by Thursday (1/25).  He 
stated that AB5 had superceded the past state law and led to creation of the 
new Board appointed by the Governor.  If any Board member fails to notify the 
AG today, he will assume that he or she does not intend to relinquish their 
position and the AG "will proceed to serve and prosecute the complaint."  The 
Board meets in Executive Session today. The only rumor I heard was for a mass 
resignation. Joe Hartsoe and Ron Carroll report that FERC does not intend to 
get involved at this time.  The WPTF is considering an injunction.

Governor Davis' ISO Board (DISOB)

The "new" Board met and admitted they know nothing about the details of the 
ISO.  The chair is Michael Kahn (he has been replaced on the Oversight Board 
by Cary Doan.  The ISO informed the DISOB that FERC was expecting a filing on 
Jan 31 describing its market re-design.  The DISOB decided to file a notice 
with FERC saying it has a new Board and can't meet the deadline, and 
promising a progress report in 60 days.  Board Member Mike Florio reported 
thatn Bill Julian in the GOvernor's office had a little group pulled together 
to work on completely changing the ISO's market design.  I found out who's in 
the group -- Bill Hogan and other Navigent members.  That's it. The DISOB 
also agreed to an 8-hour meeting on 2/1.

Armed State Takeover?

My ISO contact (an individual who was born and raised in the Middle East) 
said that the Governor's office has informed the ISO that it has "sheriffs 
standing by" to takeover the powerplants if necessary and has already talked 
with the union, which has agreed to keep operatig the plants if the takeover 
happens.  His comment to me:   "This is like Russia."