EXECUTIVE ORDER D-21-01


WHEREAS, on January 17, 2001, I proclaimed a State of Emergency to exist within the State of California due to the existing energy shortage in the State of California; and

WHEREAS, California's energy shortage has resulted in unanticipated power outages for California residents and for critical services in the State, including but not limited to, schools, transportation facilities, businesses, and agriculture; and

WHEREAS, these power outages threaten the health and safety of California residents, critical services in the State, and vital segments of California's economy; and

WHEREAS, it is necessary for the State to take control of the block forward market contracts to ensure a sufficient and continuous supply of electricity to meet California's energy needs and to mitigate the effects of this energy shortage; and

WHEREAS, the circumstances require extraordinary measures beyond the authority vested in the California Public Utilities Commission;

NOW, THEREFORE, I, GRAY DAVIS
, Governor of the State of California, by virtue of the power and authority vested in me by the Constitution and the statutes of the State of California, including the California Emergency Services Act, and in furtherance of my Proclamation of a State of Emergency, do hereby issue this order to become effective immediately:

Pursuant to section 8572 of the California Emergency Services Act, it is ordered that the contracts and trades in the market for the sales and purchases of forward contracts and trades for electricity (known as the "Block Forward" market) for the delivery of electricity possessed by Pacific Gas and Electric Company, a corporation organized and existing under the laws of the State of California with its principal place of business in California, and subject to actions, including liquidation, by the California Power Exchange Corporation, a non-profit public benefit corporation organized and existing under the laws of the State of California, is hereby commandeered by the State of California to be held subject to the control and coordination of the State of California.

I FURTHER DIRECT
that as soon as hereafter possible, this order be filed in the Office of the Secretary of State and that widespread publicity and notice be given to this order.