Davis Signals Utility's Grid Could Be Seized  Power: Governor says eminent domain is a possible last resort against PG&E,  which is balking in state sales negotiations.
By DAN MORAIN and NANCY RIVERA BROOKS, Times Staff Writers  On the eve of a new round of rescue negotiations with a reluctant Pacific Gas  & Electric Co., Gov.
Gray Davis suggested Wednesday that as a last resort the  state could seize the utility's prized electrical transmission system through  eminent domain.
That saber-rattling cut against the grain of some rare good news in the  state's continuing electricity crisis.
The energy supply crunch eased  slightly as grid operators pumped up the cushion between supply and demand,  and for the first time in more than five weeks the statewide power grid was  operating under a relatively mild Stage 1 emergency.
Negotiations with the state's two other big utilities--Southern California

Davis Signals Utility's Grid Could Be Seized