Having failed to resolve either the budget or the energy issues, the Legislature is likely to postpone its recess and work through the weekend, at a minimum.
In sum, though many claim that the Legislature will "vote for something," it still doesn't appear that the "something" will include a measure that will keep Edison out of bankruptcy.
The Senate and Assembly remain extremely far apart in their approaches to amending the Governor's original MOU (which is dead).
The ranks of politicians that view bankruptcy as the best alternative is growing.


In the Senate:
SB18XX---Bill to de-link the bonds from the DWR Contracts
In the only bipartisan move to date, SB18XX passed out of two committees yesterday, but has not yet been voted on by the full Senate.  
The bill de-links payment of the bonds needed to backfill the state budget from payment of DWR contracts.
The bill is being driven by increasing concerns over the volume and price of the DWR contracts.
The DWR contracts are being held up as the reason California must suspend, or end, Direct Access.
Republicans on the Assembly side are supportive of 18, but Hertzberg--the Speaker--has joined with the Governor's people in the view that the bill would impair the contracts, consititute a breach, and expose the State to substantial damages.
As a result, when the bill passes the Senate and gets over to the Assembly, its chances of passage there are low.
SB72XX---The Senate's MOU
The Senate's version of the MOU--SB72XX--limped out of its final committee yesterday before going to a vote by the full Senate, but its chances of passing the full Senate at this point are 50-50.
The problem is that many democrats believe they will be attacked for voting for a bill that will likely drive Edison into bankruptcy, while many other democrats fear it will look like they bailed out Edison----the courage and leadership is awesome.

In the Assembly:
The Assembly two versions of the MOU---AB 82XX and AB 83 XX (now AB 50XX)
The Assembly is severely divided over how to address the energy issue.
The Speaker is having a very difficult time getting democrats to support his own bill (82XX).
Many moderate democrats support a bipartisan bill developed by a democrat (Rod Wright), who has broken ranks with Repbublicans, and Assembly Republicans.
In the end, the Speaker's bill is likely to prevail.
Things are complicated by the fact that the Assembly is having a very difficult time getting a budget passed.
As noted above, the Assembly democractic leadership opposes SB 18XX and is trying to cobble together an alternative to 18.