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To: Frank A. Coluccio who wrote (515)	12/19/2000 1:56:01 PM
From: Ahda	Respond to of 24758

What are you a guru? Inflation less energy no jobs more problems yuck. Tis gorgeous in Ca now, not hot, just delightful. Darn i was so hopeful this morning and that is a dream right now as heat will be real in the SF valley in the summer and so will the costs. Tuesday December 19 12:29 PM ET Calif. Power Crisis Worsens; Utilities Feel Crunch By Patrick Connole WASHINGTON (Reuters) - California utilities, running out of cash due to rocketing power costs they cannot pass on to consumers, may be forced to lay off thousands of employees, Energy Secretary Bill Richardson said on Tuesday. The financial crisis confronting PG&E Corp and Edison International stems from runaway prices they must pay for wholesale electricity to keep the lights on throughout the nation's richest and most populated state. California has been under the daily threat of power blackouts in recent weeks. ``I am concerned that we may be on the verge of a liquidity crisis,'' Richardson said at a meeting of U.S. regulators, California utilities, and California state officials to discuss the state's dire electricity situation. Both utilities have been forced to pay more than $1,400 per megawatt hour for wholesale electricity on the spot market, compared to $34 per megawatt hour one year ago. Thousands of employees at California utilities could be laid off because of the spiraling costs, Richardson said. And repairs and maintenance at key facilities may have to be curtailed because of the lack of cash, he added. PG&E SAYS DIVIDEND AT RISK The parent of Pacific Gas & Electric said late on Monday its quarterly dividend of 30 cents per share was at risk because of soaring wholesale power costs. The giant utility said it was unable to recover some $4.5 billion in wholesale power purchases through the end of November. Under California's deregulation rules, PG&E and Edison International's Southern California Edison are not permitted to pass through all their rising energy costs to consumers. When the state adopted its pioneer deregulation law in 1996, energy costs were relatively low. But heavy demand from California's Silicon Valley, unexpectedly tight supplies of electricity from hydropower facilities in the west, and a run-up in natural gas prices -- the fuel used by many utilities -- has pushed the state dangerously close to ordering rolling black-outs. Richardson said California's electricity supplies could be threatened if out-of-state generators and marketers who sell to the two major utilities become concerned that they may not be paid for their power because of credit issues. ``We have some serious problems in California,'' he said during the meeting held at the Federal Energy Regulatory Commission headquarters. The state's electricity supplies remain tight and natural gas prices, while moderating somewhat in recent days, are still too high, he said.