- Newsmaker: Edison and California Spring Secret Deal - After two weeks of concealed meetings, Governor Davis and the Public Utilities Commission have announced an agreement to keep Southern California Edison out of bankruptcy. Consumer groups call it a "secret bailout" at rate-payers expense. Jason Leopold, LA Bureau Chief for The Dow Jones Newswires explains the conflict.
The Political Effects of CA's Financial Trouble
While there haven't been any blackouts, the management of the energy crisis has taken its toll on the fiscal health of the state. Concerns about public safety and damage to the economy mean the state budget may require revisitation by lawmakers and Governor Davis. The Legislature, the Governor, and other statewide officials are about electricity rates, bond issues and keeping Edison out of bankruptcy. With the statewide primaries coming up next March, the pressure is on for the elected officials. Experts and political strategists share differing views about this complicated situation.