SAN FRANCISCO - The California Department of Water Resources will allow $350 million of variable-rate power revenue bonds to become bank bonds next week after failing to find buyers last week for a fixed-rate conversion.

The DWR planned to price $523 million of fixed-rate debt last Thursday, converting variable-rate bonds issued in 2005 into fixed rate. The deal included three series totaling $425 million for which letters of credit or liquidity agreements expire Dec. 1, plus another $98 million series for which the department chose to terminate the liquidity provisions.

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