Assembly Panel OKs Davis’ Edison Bailout

Gov. Gray Davis’ $2.9-billion bailout of Southern California Edison cleared the Assembly Appropriations Committee on Tuesday after lawmakers reinstated a provision allowing the state to get conservation rights to 20,000 acres of utility land.

Under SB 78xx, by state Sen. Richard Polanco (D-Los Angeles), residents and businesses served by Edison would pay $2.9 billion of the $3.9-billion debt the utility amassed buying power for more than it could charge under a rate freeze. The bailout still needs to clear the full Assembly and get final Senate approval.