The deal, which is still pending approval by state legislators and regulators, calls for state control of the company's 12,000-mile network of transmission lines, which carry electricity from power plants crisscrossing much of the Southland. In exchange, the state's second-largest utility would receive $2.76 billion to pay off debts, including those owed to power generators and agree to provide lower cost power to its customers for the next 10 years.
If approved, the plan could keep SoCal Edison from following the same path as Pacific Gas & Electric, which filed for Chapter 11 bankruptcy last week. The actions of California's largest utility company caught many state officials by surprise, as the company had been trying to strike an agreement with the state shortly before it filed for bankruptcy. Judge Dennis Montalia held the first hearings in the PG&E case on Monday in San Francisco.
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