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If they did not know, they would receive damages from our cash strapped state, but the contracts would end...thereby stopping the bleeding

You want California to breach the contracts, and pay out now the present value of the future stream of profits to the energy companies? Cool. That should send California's bonds deep into junk bond status.

The energy companies knowing that the negotiator had a conflict of interest is not a ground to set aside a contract, unless they had something to do with his being chosen for the job. The only caveat is if there is some special California law for government contracts. They might be, but if so, I am not aware of anyone, including McClintock, mentioning it. One would think that he would have, if such existed on the books, to buttress his case.

I hope that helps.

McClintock has mentioned a specific California law that is specific to California Government contracts. However, I have not specifically checked into it, and since you bring it up, I will now check into it...

However, I do not agree that the cancelling of the contracts represents the present value...normally (whatever that means) the contractor would be allowed the profit portion only, not the cost of the item (i.e. electricity) itself unless the contractor relied on the contract and actually purchased the item (i.e. power).

I do appreciate the civil nature of this discourse...