LOS ANGELES -- In the first major alteration of the state's disastrous five-year-old experiment with power deregulation, California Gov. Gray Davis on Thursday signed a law authorizing the state to enter into long-term contracts to buy electricity in the hope of driving down prices and solving the state's energy crisis.

The move does not reverse the 1996 deregulation law, but modifies a key provision requiring private utilities to buy electricity on the often-volatile spot market.

More important, the $10-billion law for the first time puts California in the power-buying business, using its good credit to purchase electricity for two private utility companies teetering on the edge of bankruptcy.

Even before it passed Thursday afternoon, the measure was assailed by Republicans in the Assembly and consumer groups for a provision authorizing the Public Utilities Commission to raise customer rates to help bail out the private utilities and repay the bonds the state would issue.

Indeed, after a marathon session Wednesday that stretched to 3 a.m. Thursday, the measure initially lost in the Assembly by three votes. The Senate passed the bill earlier Wednesday. But the Assembly regrouped Thursday afternoon and passed it.

Elsewhere

STUDENT COULD FACE 108 YEARS: The community college student accused of assembling an arsenal of guns and explosives in his room and plotting a mass killing at De Anza College pleaded innocent Thursday to 122 charges. If convicted, Al DeGuzman, 19, of San Jose could face up to 108 years in prison.

PROFESSORS WERE STABBED: Two Dartmouth College professors found dead in Hanover, N.H., were stabbed to death, probably by someone they let into their home, authorities said. The bodies of Half Zantop, 62, and wife Susanne, 55, were found Saturday.

LIDDY SUIT DISMISSED: A federal judge Thursday declared a mistrial and then dismissed a $5.1-million defamation lawsuit against Watergate conspirator G. Gordon Liddy after the jury could not reach a verdict.

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