CPUC Approves $2 Billion Borrowing for SoCalEd
California regulators have issued emergency authorization for
increased borrowing --- up to $2 billion --- for Southern
California Edison to help it pay the bills for this summer's power
The utility needs the money to pay power suppliers' bills since
its frozen retail rates resulted in huge undercollections from
In a closed session of the special California Public Utilities
Commission (CPUC) meeting, regulators also considered San Diego Gas
and Electric's request that state regulators ask FERC to set caps
on the prices generators and traders can ask for when they bid into
California's power market.
For Edison, the greater borrowing was granted unanimously, but
only for the limited use of paying for the purchase of wholesale
power that in turn is sold to the utility's retail customers.
In July, Edison originally requested an increase in its
borrowing authority to a lower level of $1.2 billion, asking that
it be effective to Aug. 1. Then last week the utility asked for
emergency action to take the amount to the higher level, which is
close to the $1.97 billion under-collection recorded as of Aug. 31.
Under California regulatory laws, the CPUC is permitted to give
quick-turnaround action when the situation involves an "unforeseen
Richard Nemec, Los Angeles
©Copyright 2000 Intelligence Press, Inc. All rights
reserved. The preceding news report may not be republished or
redistributed in whole or in part without prior written consent of
Intelligence Press, Inc.