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Date: Thu, 15 Mar 2001 08:11:17 -0600
From: "Tracey Bradley" <tbradley@bracepatt.com>
To: "Paul Fox" <pfox@bracepatt.com>
Cc: "Andrea Settanni" <asettanni@bracepatt.com>, "Charles Ingebretson" 
<cingebretson@bracepatt.com>, "Charles Shoneman" <cshoneman@bracepatt.com>, 
"Deanna King" <dking@bracepatt.com>, "Jeffrey Watkiss" 
<dwatkiss@bracepatt.com>, "Gene Godley" <ggodley@bracepatt.com>, "Kimberly 
Curry" <kcurry@bracepatt.com>, "Michael Pate" <mpate@bracepatt.com>, "Ronald 
Carroll" <rcarroll@bracepatt.com>
Subject: DJ Calif Utils, State Not Close To Pwr Lines Sales Deal
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FYI

DJ Calif Utils,State Not Close To Pwr Lines Sales Deal -Exec
Copyright , 2001 Dow Jones & Company, Inc.

LOS ANGELES (Dow Jones)--California doesn't appear to be close to reaching a 
deal to buy the power lines owned by the state's three investor-owned 
utilities and restore the companies to financial stability, a utility 
executive told Dow Jones Newswires Wednesday.

     Gov. Gray Davis said this week that progress was being made and a final 
agreement between the state and PG&E Corp. (PCG) unit Pacific Gas & Electric, 
Edison International (EIX) unit Southern California Edison and Sempra Energy 
(SRE) unit San Diego Gas & Electric could be reached in either "days or 
weeks."

     But the tone in Davis's office when asked about the negotiations has 
changed.

     "The governor realizes it's in everyone's interest to resolve this as 
quickly as possible, but only if we get a good deal for California 
ratepayers, not at the expense of California ratepayers," said Steve 
Maviglio, the governor's press secretary.

     A senior executive with Edison International, which has already reached 
an agreement in principle with Davis to sell the state its power lines for 
$2.76 billion, said Wednesday the company is "not getting much reaction from 
the state on a final agreement and there is a growing concern that time is 
running out."

     "Obviously I don't think the status quo can go on much longer," the 
executive said. "The urgency rests with the governor's office. The ball is in 
his court."

     The executive wouldn't say what is delaying a final resolution.

     The Davis plan, introduced last month, would have the state buy the 
power lines owned by the utilities for about $7.5 billion and allow the 
utilities to issue bonds to restructure any remaining debt.

     Maviglio wouldn't elaborate on the negotiations, but an aide to Davis 
who is familiar with the negotiations said the talks between PG&E have fallen 
through.

     "They've completely broke down," the aide said. "The (Davis 
administration) hasn't negotiated with PG&E for about a week."

     A PG&E spokesman wouldn't comment on the negotiations.

     -By Jason Leopold, Dow Jones Newswires; 323-658-3874; 
mailto:jason.leopold@dowjones.com

     (END) Dow Jones Newswires 15-03-01


      DJ Calif Utils -2: Calif Gov: Talks Continue, Progress Made

     The Davis administration said on the record that negotiations continue 
and they are meeting with all three utilities and continue to make progress, 
said Steve Maviglio, press secretary to Governor Davis.


     (END) Dow Jones Newswires 15-03-01