By Sylvie Dale
SACRAMENTO, Calif., September 25, 2001 – California Gov. Gray Davis will probably call the state legislatures back for a special Oct. 2 session to iron out the last parts of a bill which would help Southern California Edison avoid bankruptcy.
In what may become a last-ditch effort to save the debt-laden utility, the governor said he would schedule a special session in about two weeks, Reuters News Service reported.
The cash-strapped utility is struggling to stay afloat after months of paying for power at high prices while not being permitted to pass the costs along to the ratepayers.
Some of its unsecured creditors are trying to marshal support for an involuntary bankruptcy, but SoCal Edison has said it would resist such an effort.
The bill was still stalled in the California Senate when it adjourned September 15.
Pacific Gas & Electric Co. filed for Chapter 11 bankruptcy protection in April after failing to come up with a rescue plan with Davis.