http://www.cnn.com/2001/US/01/19/power.woes.03/index.html
<<The California Public Utilities Commission (CPUC) issued a temporary restraining order Friday requiring Southern California Edison and Pacific Gas & Electric to "meet their legal obligation to serve all customers.>>
<<The CPUC acted after the companies notified the agency they would begin reviewing their responsibilities Saturday. An emergency meeting of the PUC began in San Francisco at 11 a.m. (2 p.m. ET) to discuss the order.>>
<<Pacific Gas & Electric Co. and Southern California Edison estimate they have lost more than $11 billion. They have both defaulted on millions in dollars in bills and lender payments and have warned that they are sliding toward bankruptcy.
There was more trouble Thursday: SoCal Edison was suspended from the state's Power Exchange, a clearinghouse for buyers and sellers of electricity, after failing to pay $215 million in bills.>>
<<The utility must post collateral before it can return to the market, an exchange spokesman said. A utility spokesman refused to comment, and it was unclear where SoCal Edison would go for its power.>>
Well it appears that SoCal Edison at least will be in Bankruptcy court next week unless the state starts giving them power at no cost. There will be no commerical buyers for the infrastructure (because of the current rate plan) so Cali will have to buy them, I would estimate that the line infastructure and such is probably worth at least 500million to 1billion dollars. Plus I would expect a lawsuit from the suppliers against the state to get them to pay the 11billion in debt, in addition the bond holders and stock holders will undoubtably sue to reclaim the assets lost due the negligence of the State. It will be very interesting to see how much taxes go up in Cali as a result of the expenses, probably at least a percent in sales tax or a percent in income tax.
<<The California Public Utilities Commission (CPUC) issued a temporary restraining order Friday requiring Southern California Edison and Pacific Gas & Electric to "meet their legal obligation to serve all customers.>>
<<The CPUC acted after the companies notified the agency they would begin reviewing their responsibilities Saturday. An emergency meeting of the PUC began in San Francisco at 11 a.m. (2 p.m. ET) to discuss the order.>>
<<Pacific Gas & Electric Co. and Southern California Edison estimate they have lost more than $11 billion. They have both defaulted on millions in dollars in bills and lender payments and have warned that they are sliding toward bankruptcy.
There was more trouble Thursday: SoCal Edison was suspended from the state's Power Exchange, a clearinghouse for buyers and sellers of electricity, after failing to pay $215 million in bills.>>
<<The utility must post collateral before it can return to the market, an exchange spokesman said. A utility spokesman refused to comment, and it was unclear where SoCal Edison would go for its power.>>
Well it appears that SoCal Edison at least will be in Bankruptcy court next week unless the state starts giving them power at no cost. There will be no commerical buyers for the infrastructure (because of the current rate plan) so Cali will have to buy them, I would estimate that the line infastructure and such is probably worth at least 500million to 1billion dollars. Plus I would expect a lawsuit from the suppliers against the state to get them to pay the 11billion in debt, in addition the bond holders and stock holders will undoubtably sue to reclaim the assets lost due the negligence of the State. It will be very interesting to see how much taxes go up in Cali as a result of the expenses, probably at least a percent in sales tax or a percent in income tax.