The Senate, the Assembly and the Governor are either poised to engage in very difficult negotiations, or the three are about to crash and burn and Edison's going to be left dangling.

In the Senate:
The Senate bill 78XX is with about 90% likelihood going to be voted out of the Senate tonight---without a vote having taking place in any committee.
Burton announced during one of the two "informational" hearings that "this is it," despite the view of just about everyone who appeared before the committees the bill likely won't prevent Edison from going bankrupt.
The key features of the bill are:
Banks and QFs get paid in full.
Edison shareholders would be responsible for debts owed to suppliers
No direct access.
There are conflicting reports about whether the Senate will take up the bill tomorrow de-linking the bonds from the DWR contracts and whether the Republicans will go along with it.

In the Assembly:
The Committee is hearing the Wright and Hertzberg bills as we speak, with Hertzberg's the likely winner.
That bill now provides for Direct Access under certain conditions (the amendments describing the conditions were faxed today).
We're attempting to get the "July 12" date changed to "the effective date of the bill" or later.
The Assembly likely won't vote the Hertzberg bill out until tomorrow at the earliest.

The Problem:
The Assembly and Senate bills are diametrically opposed in the way each approaches the problem---in short, the bills are two ships passing in the night.
The Democratic leaders (Governor, Hertzberg, Burton) aren't talking, and Burton hasn't expressed any interest in talking---to anybody.

The likely outcome given the circumstances:  
Burton says he's done what he needs to do (i.e., passed out a "fair" bill); the Assembly and Senate can't agree; they finish the budget; time runs out; they leave Friday; and Edison's left twisting.

That said, there's still a chance that the Governor could call Burton and sit down with Burton and Hertzberg and work something out by Friday, or begin talking and postpone the recess until they get it worked out.  But given Burton, the chance of that happening seems very slim.

In short, little has changed since yesterday.

Best,
Jeff