EXECUTIVE ORDER D-60-02


WHEREAS, on January 17, 2001, I issued a Proclamation pursuant to the California Emergency Services Act (Gov. Code § 8550 et seq.) declaring a State of Emergency due to an energy shortage in the State of California and ordered the Department of Water Resources to purchase electric power as necessary to mitigate the effects of the emergency; and

WHEREAS, thereafter in February 2001, significant funding was advanced for such purchases from the State's General Fund to the Department of Water Resources Electric Power Fund established by Water Code section 80200, and the Department was authorized to sell revenue bonds to finance the purchase of electric power needed to mitigate the effects of the emergency (Stats. 2001, 1st Ex. Sess. 2001, ch. 4 (AB1X)); and

WHEREAS, on June 18, 2001, I issued Executive Order D-42-01 pursuant to the Proclamation of a State of Emergency and the California Emergency Services Act, authorizing the Department to accept loans and utilize the proceeds to make payments to purchase electric power and natural gas to generate electric power to mitigate the effects of the emergency, and to pay costs related thereto, and to fund capitalized interest and reserves for the loans; and

WHEREAS, pursuant to Executive Order D-42-01, the loans were to be used to purchase power pending the sale of, and to be repaid from, the bonds issued by the Department; and

WHEREAS, the proceeds of these loans were not used to repay the General Fund for the advances made to the Department of Water Resources Electric Power Fund or to pay for the purchases of power made prior to issuance of the Executive Order; and

WHEREAS, the Department anticipates that it will soon issue the bonds to repay such loans and advances from the General Fund; and

WHEREAS, the Department has determined that allocation of the proceeds of the Department's loans to expenditures made by the Department prior to Executive Order D-42-01 will assist in mitigating the effects of the emergency by enabling the Department to reimburse the General Fund and repay the loans at significantly lower cost;

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 statutes of the State of California, including Government Code section 8648 of the Emergency Services Act, and in furtherance of the Proclamation of State of Emergency issued January 17, 2001, hereby issue this order to become effective immediately:

IT IS ORDERED
that Paragraph B of Executive Order D-42-01 is amended to read: "The Department is authorized and directed to utilize the proceeds of the loans to make payments to purchase electric power and natural gas for generation of electric power to mitigate the effects of the emergency, or to reimburse the Electric Power Fund for expenditures made prior to the date hereof for such purchases, and for costs related thereto and to fund capitalized interest and reserves required in connection with such loans."

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.