May 10, 2001 California Seeks Power Debt Relief
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Gov. Gray Davis asked power generators today to accept a 30 percent cut in money they are owed by Southern California Edison, the state’s second largest utility, to help keep it afloat. The California governor’s request came after two days of rolling blackouts caused by high temperatures and scarce electricity. Grid operators avoided blackouts today after temperatures dropped slightly. Officials at the Independent System Operator, which manages the state’s electricity grid, said that supplies would still be tight on Thursday, but that slightly cooler weather would help them meet demand. Southern California Edison owes generators more than $1.1 billion, but they are unlikely to see their money for years if it declares bankruptcy, Mr. Davis said he told 12 electricity and natural gas producers. “I think they understand they have to share in the pain,” the governor said. “They have to share in the solution. I believe they are willing to take some reduction in the amount of money they are currently claiming.” So far no one is volunteering to forgive the debts. Southern California air regulators are close to slashing their market-based system for controlling power plant pollution. The move is intended to allow large power plants to operate at full capacity without facing stiff fines as they try to meet demand. |