Power regulators have rejected a plan to issue twelve-point-five billion dollars worth of bonds.
The
decision will delay efforts to repay the state for billions of dollars spent on electricity this year.
The plan was proposed by the Department of Water
Resources.
The DWR spent nearly nine billion dollars earlier this year helping cashed strapped utilities, which couldn´t afford to purchase power when
rates skyrocketed.
The Public Utilities Commissioners who opposed the plan say the state instead should use procedures spelled out in a Senate bill to
repay the general fund.
Governor Gray Davis and state Treasurer Phil Angelides warned last week the state could suffer a 9.3 billion dollar budget
deficit if delays continue.
This post was last modified on 01/31/2009 5:55 pm