BILL NUMBER:  AB 2669
  VETOED	DATE: 09/30/2002




SEP 30 2002

To Members of the Assembly:

I am returning Assembly Bill 2669 without my signature.

This measure allows telephone companies that are regulated under the
New Regulatory Framework, know as the "price cap" regulatory
structure, to issue stock or debt without California Public Utilities
Commission (PUC) approval unless the PUC can prove that such an
issuance would not be in the public interest.

As I indicated in my veto of AB 1082 (Calderon, 2000), there is no
need to duplicate existing PUC procedures that allow the PUC to
exempt telephone companies on a case-by-case basis from regulatory
review of their financing proposals. For this reason, I am vetoing
this measure.

Sincerely,

GRAY DAVIS