The Commission voted out the order 5-0, essentially as it appeared 
yesterday.  Three key changes:
They clarified that the surcharge applies to Direct Access customers (but the 
entire "rate freeze" structure remains intact for now).
The Commission reversed itself and chose not to adopt TURN's "netting out" of 
gen revenues and CTC collections, and said instead that the Commission will 
consider it as an option in the next phase (a move likely made in order to 
lower chances of a successful utility appeal).
The Commission added to the decision language saying that it will study the 
pros/cons of securitizating the utilities' power purchase costs.  They will 
submit a report on the issue to the Governor and Legislature.
On this last point, wire reports are rampant about the possibility that 
legislation will be introduced as early as today proposing to securitize the 
utilties' power purchase costs.  This action has reportedly been the result 
of discussions that occured through the night between the governor's office, 
the utilities and the ratings agencies in reponse to the fact that the 
decision issued by the PUC falls well short of what's needed to keep the IOUs 
credit worthy and solvent.  As a result of those wires stories, the 
utilities' stock has come back (Edison was down as low as 6.25 and is 
currently at 10 7/8; PG&E was at 8 7/8 and is currently at 11 7/8).  We're 
working with Sandi McCubbin, who heads-up our legislative activities in 
California, to get more info and will report back.
The hearing was dominated by highly charged anti-generator, anti-marketer 
rhetoric, which is likely to play a prominent role in the press accounts.  
Only FERC was demonized more.
Each of the Commissioners, including the most recent "interim" appointee,  
made strong statements regarding the undesirability of utility bankruptcy.
The Commission left open the possibility of "doing more" at their next 
meeting (two weeks from today), which means the negotiations with the 
utilities and ratings agencies are likely to continue. And if an agreement is 
reached, it could end up on the next agenda.