The Senate did not take up the SCE MOU prior to adjourning.  All Assembly
bills which passed out of their house of origin but were not heard in the
Senate are automatically held, and all Senate bills which were amended in
the Assembly but needed to go back to the Senate for concurrence are
automatically held.  Those bills include, among others:

ABX2 2 (Corbett) Windfall profits tax
SBX2 1 (Soto/Scott) Windfall profits tax
SBX2 78 (Polanco) SCE MOU
ABX2 65 (Cardoza) Market power
SBX2 27 (Bowen) Direct access
SBX2 39 (Speier) CPUC regulatory expansion
SB 532 (Sher) Renewable portfolio standard
AB 57 (Wright) CPUC reasonableness review

Governor Davis issued the following statement in response to the Senate's
failure to pass the MOU.  This statement was issued prior to adjournment and
Senator Burton indicated that he may not be willing to comply with the
Governor's request for a third special session, however this is subject to
change.  If a third special session is called, the above-referenced bills
could be reactivated:

GOVERNOR DAVIS COMMENTS ON FAILURE OF SENATE TO APPROVE EDISON LEGISLATION

Will Call 3rd Special Session to Keep Edison from Bankruptcy

SACRAMENTO

Governor Gray Davis made the following comments after legislation designed
to restore Southern California Edison to creditworthiness failed to win
approval in the California State Senate.

"I am proud of the work done by the Assembly to get the State out of the
business of buying electricity by restoring Edison to creditworthiness.
Unfortunately, however, the Senate has not gotten the job done.

"It is critical to keep Edison solvent so that we do not lose 3,000
Megawatts of power from renewable energy and small power producers. We
worked hard to bring this energy, which was crucial in avoiding blackouts,
back on-line earlier this summer.

"I will call a Third Extraordinary Session, which will begin in
approximately two weeks, so that Edison can avoid bankruptcy. Edison has
assured me that it will not seek bankruptcy and that it believes that its
creditors will continue to show restraint."



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