California: Davis caught between energy generators, PUC chief on contracts

Sacramento Bee ^ | January 18, 2002 | Dan Walters

[John Jorsett]

The final day of any state legislative session, with lawmakers and lobbyists frantically trying to finish business before the clock strikes midnight, tends to produce bizarre political confrontations -- but few surpass what happened in the Assembly last September.

Sen. Jackie Speier, D-Hillsborough, was pushing a controversial bill that would bring non-utility power generating plants under the purview of the state Public Utilities Commission. But the chairman of the Assembly's utilities committee, Los Angeles Democrat Rod Wright, a political ally of utilities and generators, was demanding major amendments.

[eureka!]

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[Libertarianize the GOP]

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[Ernest_at_the_Beach]

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[Ernest_at_the_Beach]

Oh, this is a most interesting article !

Davis is in a pickle for sure!

[Dog Gone]

If the PUC gets control over the non-utility power generators, then Davis will be one step further to his fascist California Power Authority becoming a viable reality. It will also have a chilling effect on any plans for future plants within the state.

Interesting, though, that Calpine was close to reaching a deal to renegotiate contracts with their political pal, Gray Davis. I don't own stock in that sorry company and never will, but if I did, I'd consider suing the company if they gave away value to save Davis' political hide.

[d14truth]

I believe there are plenty of Calpine/Enron 'tentacles'. I'll try to find and 'link' a few.

[ken21]

gov gray maybe a one-term gov.

[TwoStep]

"Davis is in a pickle" I'd say, he is burnt toast!

[Cachelot]

California: Davis caught between energy generators

Good. Crank up the juice. He needs enlightenment. Of course, the sparks from his hair would be amusing too.

[randita]

Without a PUC-approved rate agreement, the state cannot issue a long-stalled, $12.5 billion energy financing bond;

The issue of this bond was initially supposed to occur last May, but it has been continually postponed because Dave, the PUC and the Legislature cannot agree on what's going to guarantee the bond. They're still at loggerheads, as this article indicates.

[randita]

I don't own stock in that sorry company and never will, but if I did, I'd consider suing the company if they gave away value to save Davis' political hide.

Great point. Curious minds want to know: What's in this for Calpine? What benefit accrues to them by renegotiating these contracts?

[Dog Gone]

It's hard to know. Renegotiation by itself does not necessarily mean lower profits. You can restructure a contract many ways that might lower current payments but put the value someplace else. An extension, for example.

But given Calpine's incestuous relationship with the Davis Administration, I suspect the company was trying to get some political favors out of it, perhaps by having Davis shut out some competitors, or fast-tracking some permits for Calpine.

I'm just speculating, of course. But I think the company is sleazy, and I know Davis certainly is.

[Grampa Dave]

Thanks to John for posting this and to all for their on target replies!

SW, remember my remark in early May last year about CalPine Stock. It looked good, sounded good and would have been good if it was not such a buddy/buddy with Facist Davis!

You kidded, me about my reluctance to buy this stock. One of my better financial decisions for 2001!

A company that is in bed with Facist Davis will likely end up like the companies in bed with the bent one after X42, the bent one, left office!

[SierraWasp]

"You kidded, me about my reluctance to buy this stock."

You took me far more seriously than I ever expected! However, the blame for Calpines southerly direction recently, has a lot more to do with being unfairly lumped in with ENDRUN!

I just thought, and still do, that the company is not only aggressive, but quite sound in recognizing the need for their prime product/service and had done a lot more than most others to work toward solving the pipeline dilema along with tying up huge amounts of Nat.Gas reserves.

I still think it will pay off for them, although I agree with you that they way overplayed their hand with Davis in thinking his popularity would remain stable. Politics plays out just like the atmosphere... the winds rush from high pressure to low pressure cells.

Did you notice the press reports of Ken Lay being in league with Clinton, Clinton & Gore on "Global Warming," and Kyoto to drive up the demand for Nat. Gas even higher. You don't have to agree with these Demonicrat clowns to somewhat admire how well they manipulate the Media/Government complex. Calpine was trying to cash in on it too.

They sure are a bargain right now. Maybe you better git on board now while the gittin is REALLY good!(just kiddin)

[Grampa Dave]

I will wait and see who the next Kali Gov is before I would consider buying any Calpine stock!

[Paulus Invictus]

I wish you were right but there are too many dumocRATs in Kalipornia and they will vote for Davis regardless.

[zog]

--do you think people would actually invest in these bonds? To any significant degree, I mean?

[randita]

--do you think people would actually invest in these bonds? To any significant degree, I mean?

People will invest in anything if the interest rate is favorable and the payoff certain, which it will have to be or CA will not be able to get the money for the bonds in the first place.

But the more favorable the bonds are for investors, the less favorable they will be for the taxpayers or ratepayers of CA, who will be shouldering the cost of the bond interest for at least a decade to come.