NPR's Richard Gonzales reports. The proposal I'm making today is a balanced business transaction. It provides real value to ratepayers while allowing utilities to go back in business and keep the lights on. Davis didn't say how much the transmission lines would cost California. So it is my hope that the proposal today will avoid the need for bankruptcy, provide some assurance to the customers, creditors and generators that they'll be receiving payments and allow us to go forward without the fear that everything will collapse.
Republican lawmakers are cool to the idea of the state buying the transmission lines.
Assembly Minority Leader Bill Campbell says the transmission lines might be a white elephant that may cost an extra billion dollars to upgrade and maintain. That billion dollars is going to come from somewhere. It's coming from something. The Republicans suspect the utilities have overstated their debt. Regardless of how much the utilities owe, Governor Davis believes the debt can be retired with revenue bonds secured by a dedicated rate charge that is already built into consumers' bills.