Appeals courts denies stay for SCE deal

Southern California Edison Co., a unit of Edison International, Wednesday said an appeals court denied a motion by a consumer organization to stay a deal the utility believes will save it from bankruptcy. SCE and the California Public Utilities Commission agreed to a plan that would allow the utility to pay its debts and be restored to creditworthiness, but consumers don't like it.

Nov. 29, 2001

2 min read

By the OGJ Online Staff

HOUSTON, Nov. 28 -- Southern California Edison Co., a unit of Edison International, Wednesday said an appeals court denied a motion by a consumer organization to stay a deal the utility believes will save it from bankruptcy.

It said the Ninth Circuit Court of Appeals denied a motion by The Utility Reform Network (TURN) to stay the Oct. 5 stipulated judgment entered in US District Court approving the settlement agreement between Southern California Edison and the California Public Utilities Commission.

TURN requested the stay pending its appeal of the district court's judgment. The agreement between state regulators and SCE would allow the utility to recover about $3.3 billion of its debts.

Edison International CEO John Bryson said, "We and the PUC continue to believe that the settlement is fair and reasonable to the parties, creditors, and our customers and establishes a sound path to restoring SCE's financial health."

SCE sued the PUC in federal court after regulators refused to allow the utility to raise rates and recover billions of dollars it spent of wholesale electricity but could not recover from ratepayers because of a retail rate freeze.

Facing bankruptcy, the company struck a deal with California Gov. Gray Davis but it was unpopular with legislators. SCE and the PUC subsequently agreed to a plan that would allow the utility to pay its debts and be restored to creditworthiness, but consumers don't like it.

SCE said it is confident the district court's judgment approving the settlement agreement will be upheld on appeal.