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To: Mike Magee who wrote (134114)	5/4/2001 9:36:49 AM
From: GVTucker	Read Replies (2) \| Respond to of 186894

OT OT, It now appears that rather than make the hard but proper choice of charging the people of California market prices for power, the state instead will borrow in excess of $10 billion to subsidize power purchases. Note that this subsidy will only buy power for a little less than a year. It is quite possible that we're on our way into a recession, and California is leading the way. By leveraging their balance sheet at this time, the state is opening the door to even more severe problems. The politicians figure, though, that making people only indirectly pay market prices for power is easier, and they're right. There are some major longer term ramifications, though. My guess is that the A+ rating of California GO munis will be the first to go.