Conceding that federal regulators belatedly have taken steps to offer wholesale power price relief, California Gov. Gray Davis Monday announced an agreement with Sempra Energy’s San Diego Gas and Electric Co. that wipes out a $740 million debt the utility was facing for uncovered wholesale electricity costs. The state will buy SDG&E’s transmission lines for just under $1 billion, or 2.3 times book value, and commit to provide all of its native generation to the state on a cost-based, below-market basis.
Belatedly
Articles from Belatedly
Two CA Utilities Take Multi-Billion Dollar Write-Offs
The holding companies for California’s two major utilities — one in bankruptcy and the other on the brink — belatedly last Tuesday reported multi-billion-dollar losses for 2000 after taking substantial after-tax charges in the fourth quarter because of uncollected wholesale power costs. Both indicated that California’s continuing energy crisis will impact overall financial results this year, and first-quarter earnings will need to be reported by May 15 under Securities and Exchange Commission requirements.
Two CA Utilities Take Multi-Billion Dollar Write-Offs
The holding companies for California’s two major utilities — one in bankruptcy and the other on the brink — belatedly Tuesday reported multi-billion-dollar losses for 2000 after taking substantial after-tax charges in the fourth quarter because of uncollected wholesale power costs. Both indicated that California’s continuing energy crisis will impact overall financial results this year, and first quarter earnings will need to be reported by May 15 under Securities and Exchange Commission requirements.
SoCalGas Settlement Talks Widened, Extended
Belatedly, the California Energy Commission (CEC) is getting inits two-cents-worth in the state’s remaining gas settlement talksfocused on Southern California Gas Co. The overall thrust of theremaining talks should be to unbundle more, limit the monopolyutilities’ roles, and establish user fees so that only customerswho use certain services pay for them, the CEC has suggested,mirroring stances it has taken in electric restructuringproceedings.
SoCalGas Settlement Talks Widened, Extended;
Belatedly, the California Energy Commission (CEC) is getting inits two-cents-worth in the state’s remaining natural gas settlementtalks focused on Southern California Gas Co. which resumed Tuesdayin Los Angeles. A regulatory proceeding earlier in the monthbroadened the scope of the talks at the same time concludingsimilar negotiations centered on Pacific Gas and Electric Co.’snatural gas system in the northern half of the state.