Judge to Consider Lifting Utility Rate Cap

As state legislators continue to search for a solution to California’s electricity crisis, a federal judge will consider today whether to allow Edison International’s Southern California Edison unit and Pacific Gas & Electric to pass uncollected electricity costs on to customers. The utilities have rolled up huge debts because they bought electricity at a high wholesale rate but could sell it to customers only at a relatively low retail price, which is frozen by law. This has pushed the utilities to the edge of bankruptcy and they have stopped paying their bills. Edison’s banks have agreed to wait until Tuesday to begin demanding payment.