senate approves edison rescue deal , assembly measure stalled by jennifer coleman
associated press writer
sacramento ( ap ) - - the state senate approved a bill that significantly alters the plan negotiated by gov . gray davis to help the struggling utility southern california edison .
the bill approved friday , authored by democratic sens . richard polanco and byron sher , lets edison issue $ 2 . 5 billion in revenue bonds to pay debts amassed when prices for wholesale electricity reached record - high levels in the last year .
" i believe it ' s a measure that gets us to the goal of getting the state out of the business of buying electricity . . . and to bring this entity to creditworthiness , " said polanco , d - los angeles .
approved 22 - 17 , the bill now goes to the assembly . the assembly adjourned friday night without voting on a similar measure .
the polanco - sher plan shifts the burden of repaying the bonds to commercial and industrial power users and has been opposed by business interests and by edison , which says it won ' t help the company escape bankruptcy .
davis ' plan , announced in april , offers edison $ 2 . 76 billion for its transmission system and lets it sell revenue bonds to repay the rest of its estimated $ 3 . 5 billion worth of debt generated when it had to pay skyrocketing wholesale power prices .
under the plan by polanco , and sher , of stanford , the state has a five - year option to buy edison ' s grid .
that , said republican sen . ross johnson of irvine , gives edison a bailout it " neither needs nor deserves .
" i am tired of this projection of edison as a victim . they have their legion of lobbyists here telling us ad nauseam that they didn ' t support deregulation , " johnson said during floor debate . " the idea of edison as the victim goes down in the annals of real whoppers . edison paid their lobbyists bonuses for the successful passage of deregulation . "
during the 1995 - 1996 deliberations that led to deregulation , edison officials helped create the current system in meetings with business interests and then - gov . pete wilson , a republican .
lawmakers are set to go on summer break friday night until aug . 20 , a schedule that conflicts with the deadline in the memorandum of understanding between davis and edison . that says the legislature must approve the deal by aug . 15 .
" it ' s a firm deadline , which means this issue has to be fully resolved prior to the end of the legislative recess , " davis said friday .
for that to happen , either the senate bill or a proposal by assembly speaker robert hertzberg , d - van nuys , and assemblyman fred keeley , d - boulder creek , has to reach davis .
" i have problems with both bills , " davis said . " i am heartened by the fact that there ' s a bill moving in each house . "
the keeley - hertzberg plan trims at least $ 300 million from the governor ' s offer . it also allows edison to issue the bonds , which would be repaid by edison ratepayers over 10 years .
the plan also attempts to increase the state ' s use of " green " energy resources and allow edison customers to opt for cheaper direct - access energy service .
the assembly didn ' t vote on the keeley bill friday , because hertzberg is considering forming a working group with the senate and the administration to " iron out the bills ' differences , " said hertzberg ' s spokesman paul hefner .
davis said he wanted any working group to continue working over the summer break to devise a compromise by the aug . 15 deadline .
" i don ' t want people to go out fishing for 30 days and come back and worry about it on aug . 20 because i know we ' re going to have reapportionment and other major issues to deal with in that last month , " the governor said .
on the net :
read the bills , ab 82 xx by keeley and sb 78 xx by polanco , at http : / / www . leginfo . ca . gov
read the governor ' s memorandum of understanding at
senate approves edison rescue deal , assembly measure stalled
by jennifer coleman
associated press writer
sacramento ( ap ) - - the state senate approved a bill that significantly alters the plan negotiated by gov . gray davis to help the struggling utility southern california edison .
the bill approved friday , authored by democratic sens . richard polanco and byron sher , lets edison issue $ 2 . 5 billion in revenue bonds to pay debts amassed when prices for wholesale electricity reached record - high levels in the last year .
" i believe it ' s a measure that gets us to the goal of getting the state out of the business of buying electricity . . . and to bring this entity to creditworthiness , " said polanco , d - los angeles .
approved 22 - 17 , the bill now goes to the assembly . the assembly adjourned friday night without voting on a similar measure .
the polanco - sher plan shifts the burden of repaying the bonds to commercial and industrial power users and has been opposed by business interests and by edison , which says it won ' t help the company escape bankruptcy .
davis ' plan , announced in april , offers edison $ 2 . 76 billion for its transmission system and lets it sell revenue bonds to repay the rest of its estimated $ 3 . 5 billion worth of debt generated when it had to pay skyrocketing wholesale power prices .
under the plan by polanco , and sher , of stanford , the state has a five - year option to buy edison ' s grid .
that , said republican sen . ross johnson of irvine , gives edison a bailout it " neither needs nor deserves .
" i am tired of this projection of edison as a victim . they have their legion of lobbyists here telling us ad nauseam that they didn ' t support deregulation , " johnson said during floor debate . " the idea of edison as the victim goes down in the annals of real whoppers . edison paid their lobbyists bonuses for the successful passage of deregulation . "
during the 1995 - 1996 deliberations that led to deregulation , edison officials helped create the current system in meetings with business interests and then - gov . pete wilson , a republican .
lawmakers are set to go on summer break friday night until aug . 20 , a schedule that conflicts with the deadline in the memorandum of understanding between davis and edison . that says the legislature must approve the deal by aug . 15 .
" it ' s a firm deadline , which means this issue has to be fully resolved prior to the end of the legislative recess , " davis said friday .
for that to happen , either the senate bill or a proposal by assembly speaker robert hertzberg , d - van nuys , and assemblyman fred keeley , d - boulder creek , has to reach davis .
" i have problems with both bills , " davis said . " i am heartened by the fact that there ' s a bill moving in each house . "
the keeley - hertzberg plan trims at least $ 300 million from the governor ' s offer . it also allows edison to issue the bonds , which would be repaid by edison ratepayers over 10 years .
the plan also attempts to increase the state ' s use of " green " energy resources and allow edison customers to opt for cheaper direct - access energy service .
the assembly didn ' t vote on the keeley bill friday , because hertzberg is considering forming a working group with the senate and the administration to " iron out the bills ' differences , " said hertzberg ' s spokesman paul hefner .
davis said he wanted any working group to continue working over the summer break to devise a compromise by the aug . 15 deadline .
" i don ' t want people to go out fishing for 30 days and come back and worry about it on aug . 20 because i know we ' re going to have reapportionment and other major issues to deal with in that last month , " the governor said .
on the net :
read the bills , ab 82 xx by keeley and sb 78 xx by polanco , at http : / / www . leginfo . ca . gov
read the governor ' s memorandum of understanding at