California: Sempra nearing settlement in power dispute with state

The Orange County Register ^ | August 31, 2002 | JULIE ZIEGLER Bloomberg News

[Ernest_at_the_Beach]

Producer makes progress in talks over contracts signed during last year's crisis.

WASHINGTON

[Ernest_at_the_Beach]

Calpowercrisis:

To find all articles tagged or indexed using Calpowercrisis, click below:
	click here >>>	Calpowercrisis	<<< click here
(To view all FR Bump Lists, click here)

[snopercod]

My, how Davis has changed his tune. From the WSJ, March, 2001: California Agrees to Spend $40 Billion To Buy Power Under 10-Year Deals

Mr. Davis said the 40 ten-year deals -- some of which are firm contracts, others tentative agreements -- would provide an average capacity of 8,886 megawatts of electricity. During a hot summer day, California's peak demand can hit 45,000 megawatts of capacity. The average price of this power would be $69 a megawatt hour, with the average being about $10 a megawatt hour higher than that figure during the first five years, the governor said. These prices are far below the current spot-market prices of $200 to $400 a megawatt hour.

"With these deals in place, California's energy future is looking a whole lot brighter," Mr. Davis said.

[snopercod]

Ooops! forgot your screen name...Sorry.

[Dog Gone]

As we discussed before, Davis wants a deal where he can claim savings. The companies don't care what he claims as long as they come out of the negotiations approximately equal or better.

If anyone thinks that Davis is suddenly going to become a savvy negotiator and take these companies to the cleaners, I guess they weren't paying attention last time.

[randita]

Agree with Dog Gone. This is all about style without substance. If Davis can re-negotiate with even a 1% drop in the price for CA, then he will claim victory.

What I wonder is whether this will be the end or if in another year or so, Davis (if he's still governor) will start the process all over again. I would trust that Sempra et al are savvy enough to put language in the re-nogotiated contracts that this is it--no more take backs--and that the concessions by Sempra come with a written agreement that Davis and his lackeys will not further publicly spread untruths about these deals and these companies.

But even if an agreement like this is reached, it's probably expecting way too much to expect Davis to live up to any deal.

I also wonder if Sempra et al aren't opening themselves up to a spate of people clamoring for re-negotiated contracts all across the nation and the world.