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	Calif GOP Lawmakers Ask PUC President To Resign 
	
	
	Updated: Tuesday, March 20, 2001 02:14 PM?ET 
	
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	LOS ANGELES (Dow Jones)--California Assembly Republicans have called for the 
resignation of Loretta Lynch, president of the state's Public Utilities 
Commission, saying they have no confidence that the state's top regulator 
will "play a constructive role in solving the state's energy crisis." 
	Assembly Republican Minority Leader Bill Campbell, R-Villa Park, sent a 
letter Tuesday to Gov. Gray Davis on behalf of the Assembly's Republican 
Caucus asking Davis to call for Lynch's resignation. 
	
	
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	"With efforts to solve California's energy crisis floundering in the midst of 
unpaid bills, stalled negotiations and rolling blackouts, it has come time to 
ask for the resignation of your appointed president of the California Public 
Utilities Commission, Loretta Lynch," the letter said. 
	Both Lynch and a spokesman for Davis were unavailable for comment. 
	Lynch, a former attorney, was appointed president of the PUC by Davis in 
March 2000. She is the state's top regulator, in charge of regulating 
utilities, telecommunications, commercial transportation and water companies. 
Before her appointment to the PUC, Lynch was head of Davis's office of 
Planning and Research. 
	The letter says the PUC had a number of opportunities last summer to keep the 
electricity crisis from spiraling out of control by allowing Edison 
International (EIX, news, msgs) unit Southern California Edison, PG&E Corp. 
(PCG, news, msgs) unit Pacific Gas & Electric and Sempra Energy (SRE, news, 
msgs) unit San Diego Gas & Electric to sign long-term power supply contracts 
for about $50 a megawatt-hour, nearly $30 lower than the new long-term 
contracts Davis said the state entered into recently with generators. 
	Lynch's failure to "ensure that the commission's Aug. 3, 2000, emergency 
order on long-term contracts was quickly implemented has placed the state 
budget at risk for costs now at least 40% higher," the letter said. "This 
hesitancy in a crisis will cost California's economy tens of billions of 
dollars during the next 20 years." 
	The state has spent more than $3 billion since January buying power in the 
spot market. Davis has asked lawmakers for another $500 million from the 
general fund to continue buying power. If the $500 million is granted, the 
state's commitment to power purchases will surpass $4 billion. 
	State Sen. Steve Peace, D-El Cajon, however, said last week that the Senate 
Budget Committee will deny further requests for funding unless the PUC carves 
out a revenue stream for the state's Department of Water Resources, the 
agency that is now buying the bulk of the state's power on behalf of the 
cash-strapped utilities. 
	The PUC was expected to release guidelines last week on rates the DWR can 
receive from utilities to pay back the general fund and to issue revenue 
bonds to pay for long-term contracts. But the guidelines haven't yet been 
released. 
	Last year, the PUC said the utilities could enter into limited long-term 
supply contracts to hedge their positions against price spikes. But the 
commission also said it feared if the utilities signed long-term deals with 
generators, liquidity in the wholesale market would be reduced. 
	The Republican lawmakers said the commission is responsible for nearly 
forcing the utilities into bankruptcy. 
	"We have no confidence that Loretta Lynch will play a constructive role in 
solving the energy crisis in the weeks and months ahead," the letter said. 
"With Wall Street nervous about repayment of the $10 billion in revenue bonds 
needed to cover the state's energy purchases, the CPUC has been unable to 
perform an adequate assessment of the investor-owned utilities' financial 
situation." 
	-By Jason Leopold; Dow Jones Newswires;