The bill failed to pass earlier Thursday, but on a second try carried by three votes, after Davis and legislative leaders lobbied holdouts. Republicans protested the bill will lead to higher consumer electricity prices. The legislation does not address the billions of dollars in power purchases already run up by Southern California Edison Co., a unit of Edison International, and Pacific Gas & Electric Co., a unit of PG&E Corp. Lawmakers next could consider a plan to let the state pay some of the utilities’ debts in exchange for a stake in the companies.
Feb. 2, 2001—California Gov. Gray Davis signed a bill passed Thursday appropriating $500 million from the general revenue fund for future electricity purchases and allowing the state to issue revenue bonds to buy power under long-term contracts.