Subject: california power 2 / 9
the following information is from sensitive sources . please treat with discretion .
contact robert johnston ( x 39934 ) or kristin walsh ( x 39510 ) for questions or additional info .
bankruptcy
early this week , there was a closed door meeting held by the western power trading forum in arizona . the meeting took place outside california to avoid press coverage and allow ipps to maintain a low profile . association representatives believe that regardless of what happens with the puc vs . utilities ruling expected on monday , some ipps will take the utilities into involuntary bankruptcy . our source expects that absent a significant last minute breakthrough , the filing will happen within the next two weeks , and " probably " next week . as stated in yesterdays report , the ipps are very low on cash and are not able to cover the debts of the pg & e and socal . only three creditors are needed with uncollected debts of more than $ 10 , 000 to file involuntary bankruptcy .
bail out
davis has been meeting with the chief executives of both utilities in a last ditch effort to make a deal prior to monday ' s court ruling . the most likely scenario is for state ownership of the utilities transmissions assets . however , coming to an agreed upon price will be very challenging . in addition , pg & e and edison appear to have competing agendas in pursuing a bail out plan . davis is expect to continue meetings through out the weekend in hopes of reaching an agreement before monday .