California's Governor Gray Davis and legislative leaders have agreed on a plan to resolve the state's power crisis. It includes public ownership of two huge utilities and years of power-buying by the state. Under the plan, the state will issue bonds to cover utility debts. Power customers will pay the money back over ten years through rate increases of nine percent for residential customers and seven to 15 percent for businesses. The state can sell the stock if the price goes up, using profits to help pay off the bonds.
Lawmakers say they plan to work on the details through the weekend.
The utilities have declined to comment on the proposal. Meantime, the governor also says Mexico has agreed to provide some electricity to the state. Get personalized traffic reports.