Edison Reaches Deal With Small Generators (AP) -- Southern California Edison has reached an agreement with small power generators that could ease the bankruptcy threat the utility is facing and ensure Californians a critical source of power through the summer.

The California Public Utilities Commission is expected to approve the plan Wednesday that would require Edison to make partial back payments to renewable energy power generators, many of which have sued the utility and curtailed power production.

The plan would raise the rates being paid to generators that use natural gas and offer a stable rate for five years to generators using wind, solar, geothermal or other renewable sources.

The agreement also requires Edison to pay at least 15 percent of what it owes generators.

The deal removes the threat of legal action against the utility if full payment for power bought since January is made within six months after the PUC order becomes final.

"I think it's a good, balanced deal for both sides and the only issue will be making sure the PUC will adopt the deal," said Jerry Bloom, a spokesman for the California Co-generation Council, which represents many small natural gas-fired power generators

-- pho (owennos@bigfoot.com), June 12, 2001

Answers

What's everybody getting so excited about? Summer doesn't even begin for another week yet. This doesn't sound like any kind of salvation deal to me.

-- Loner (loner@bigfoot.com), June 13, 2001.