Historic Bond Issue Uncertain.

• Position: New Briefs - Brief Article

* The California Public Utilities Commission's (PUC) rejection of a rate agreement with the state's Department of Water Resources (DWR) cast doubts on the future sale of $12.5 billion in power purchase revenue bonds. The state needs the proceeds of the proposed debt issue, which would be the largest municipal bond issue in history, to reimburse itself for the costs of buying power for the state's troubled utilities. The PUC voted 4-1 against an agreement that would have guaranteed a revenue stream to DWR to back the bonds. Four of the commissioners support an alternative...