Mark, Elizabeth & Christian:  I thought you would find this blurb describing 
an article in today's LA Times of particular interest, particularly taking 
into account the magnitude of the talked about rate increases by the 
distribution utilities.  The article does, however, make the link between the 
size of the  possible rate increases and the possibility of a voter 
initiative in CA which, as you know, is an issue that still is on the table 
with CDWR under our proposed contract.  John

CALIF.'S PUC CHIEF TO URGE RATE HIKE
     California's top energy regulator is quoted as saying she
will recommend hiking electricity rates as soon as tomorrow, with
consumers seeing higher utility bills in May, this morning's Los
Angeles Times Reports.
     Dealing directly with grave projections regarding the cost
and supply of power as summer approaches, Loretta Lynch,
president of the California's PUC, noted the rate hikes,
estimated by some sources at 20- to 50-percent, will be
structured so that large energy users, including residential
consumers, will pay the most. Such a structure, she hopes, will
force consumers to save. "We need to move forward, and the PUC
has substantial evidence [to justify a rate hike] that it didn't
have 90 days ago," Lynch, appointed by Gov. Gray Davis to head
the commission, is quoted as saying. Lynch is not apt to take
such a step without the Democratic governor's approval. Davis has
repeatedly noted his opposition to any rate hikes, but Davis
spokesman Steve Maviglio declined to comment, and Lynch would not
elaborate on any talks she had with Davis (Los Angeles Times,
Mar. 26, San Francisco Chronicle, Reuters, Dow Jones Newswires,
Mar. 24 http://www.latimes.com ).

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John Klauberg
LeBoeuf, Lamb, Greene & MacRae, L.L.P.
212 424-8125
jklauber@llgm.com