Your analysis ignores the profits received by the utilities when they sold the power plants to the generators at large multiples over book values over the last 4 years.

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-----Original Message-----
From: Roeland Meyer [mailto:rmeyer@mhsc.com]
Sent: Thursday, January 18, 2001 10:45 AM
To: 'Sean Donelan'; nanog@merit.edu
Subject: RE: Second day of rolling blackouts starts

Last night, on the news, I saw a clip of Grey Davis stating that he'd met
with the four largest generator operator in the state. He emphatically
stated that they (the operators) had said that they would force PG&E into
bankruptcy unless they were paid, by mid-night, tonight. Grey Davis was
trying to justify state bail-out of PG&E. The news commentator didn't
otherwise reference that comment, but made some disparaging remarks about
PG&E. The News station put it in the same context of the folks encouraging
PG&E customers to not pay their bills. Basically, blaming PG&E for the
problem.

Note that;

PG&E wouldn't owe such a larg sum if the generator charges (not costs)
hadn't gone up over 700% in the past three months.

PG&E is prevented from passing on their cost by law. Generator charges
currently exceed allowed end-user rates by two orders of magnitude.

There is plenty of generator capacity, if they would simply bring them
online.

AQMD (Air Quality Management District) is one excuse for keeping a healthy
generator offline.

Comment:

What's wrong with this picture? I see the generators, holding a shotgun at
PG&E's neck, and telling the state that they'll pull the triggers if the
state doesn't come up with the dough. They're not even wearing a mask! Yet,
no one is seeing anything wrong with this and they're acting like it's
PG&E's fault.

> -----Original Message-----
> From: Sean Donelan [mailto:sean@donelan.com]
> Sent: Thursday, January 18, 2001 9:58 AM
> To: nanog@merit.edu
> Subject: Second day of rolling blackouts starts
>
>
>
> California ISO has ordered a second day of rolling blackouts.
>  Following
> the written emergency operations order, the blackouts will begin with
> the next blocks in each utility's EOP.  This means people who
> experienced
> a rolling blackout first yesterday, are last on the list
> today.  People
> who did not experience a blackout yesterday move up the list.
>
>
>
>
>