FERC has given Southern California Edison until noon today (PST)to pay the California Power Exchange (Cal-PX) for its bulkelectricity purchases, which is the deadline by which the Cal-PXmust pay its creditors.

The Cal-PX requested the deferred payment deadline in anemergency motion after SoCal Edison defaulted on a payment of about$215 million to the Cal-PX that was due noon Tuesday, a move thathas put the utility perilously close to bankruptcy.

The Cal-PX said the payment deferral was “very limited in natureand does not affect the timing of payout obligations to PXcreditors.” It noted this action was either supported or notopposed by SoCal Edison, Pacific Gas and Electric, San Diego Gasand Electric, Enron Power Marketing Inc. and Williams EnergyMarketing. But Dynegy Power Marketing Inc. did oppose it, accordingto the Cal-PX.

The Cal-PX said that its creditors and California utilitiesbelieved a brief deferral of payment obligations would provide the”minimally required ‘breathing room’ necessary for the majorparties in the California markets to continue discussions toward alonger term solution.”

Without this action by FERC, SoCal Edison is staring atbankruptcy, which “in turn, could have a domino effect, damagingthe credit of some [Cal-PX] creditors and forcing other creditorsinto bankruptcies of their own,” the Cal-PX told FERC.

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