Justices Allow Work on Edison Rescue
A plan by Edison International and California regulators to keep the state’s No. 2 utility out of bankruptcy will move forward while judges review the rescue settlement, a federal appeals panel ruled.
Southern California Edison persuaded the 9th U.S. Circuit Court of Appeals to deny a consumer group’s request to freeze the rescue plan between the utility and the Public Utilities Commission. The plan will use residential rates to pay $3.3 billion in company debt.
The decision will allow Southern California Edison to proceed with its plans to pay creditors by March. The Utility Reform Network wants to invalidate the accord, saying it misappropriates money that should go to consumers and was forged in secret, a violation of California open-meeting laws.
“The important thing is that the court hasn’t made a decision on the merits of our appeal,†said Mindy Spatt, a spokeswoman for the Utility Reform Network.
The three-paragraph decision from the 9th Circuit did not state why it denied the Utility Reform Network’s requested stay. The court agreed to speed up the case, setting a hearing for early March.
Shares of Rosemead-based Edison rose 87 cents to $15.26 on the New York Stock Exchange.
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