State government labors under tight deadline to finish legislation
September 14, 2001 — California Governor Gray Davis has voiced disapproval for the current version of the state Senate’s bill which would help Southern California Edison recover from its power purchase debts.
The governor said the version the Senate was working on Friday would not save SoCal Edison from bankruptcy.
Under Davis’ plan, the state would buy Edison’s transmission system for $2.76 billion and allow the utility to issue bonds backed by customer rates to repay the rest of its $3.9 billion debts.
The Senate Energy Committee was working on a version which would let the utility issue $2.5 billion in bonds and give the state the option of buying the transmission lines for $2.4 billion.
“The language is still in flux but as currently written the Senate version will not make the utility creditworthy,” Davis said in a statement.
“The whole purpose of this exercise is to allow Edison to become creditworthy, allowing the state to get out of the power buying business. This bill fails to do this and is unacceptable. Finally, this bill puts at risk 3,000 MW of power, including renewable sources of energy, that the administration worked long and hard to bring back online.”