California State officials had told several key legislators that the state's efforts to help credit-poor Southern California Edison and Pacific Gas and Electric Co could hit $ 23 billion by 2003, a legislative source told media on condition of anonymity. That could leave customers paying at least 50% more for electricity and is far more than lawmakers and Governor Gray Davis estimated when they approved legislation authorizing the state's power purchases.
At the time, they projected they would need $ 10 billion in revenue bonds to buy power for the two utilities over a decade. The bonds would be repaid by the utilities' customers over several years. Davis has said repeatedly that he is confident the state's power crisis can be resolved without further rate increases, but the source said cabinet secretary Susan Kennedy, finance director Tim Gage and deputy chief of staff John Stevens all warned lawmakers that customers' rates would have to be raised at least 50% to cover the new projections.

That increase would come on top of a 9 to 15% increase the Public Utilities Commission approved in January, as well as a 10% increase already scheduled for next year. Bureau Report