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CNN Live At Daybreak

Ask CNN: What Will Happen if the Utility Companies Go Bankrupt?

Aired August 14, 2001 - 07:47   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
(BEGIN VIDEOTAPE)

MARCIA GUMBS, ANGUILLA: Hello, my name is Marcia Gumbs. I am from Anguilla. And my question is: What will happen if the utility companies do go bankrupt?

DAVID FREEMAN, SENIOR ENERGY ADVISER TO CALIFORNIA GOVERNOR GRAY DAVIS: Well, one of them is already in bankruptcy. They went voluntarily - PG&E.

If the Edison Company were to go bankrupt, it would just be bad for the consumers. The bankruptcy court's job is to see that the creditors are paid off and that means that they may take actions that would cause the rates to go even higher. So we're doing everything we can to work out agreements to prevent the Edison Company from going bankrupt. And right now, there's an agreement between the governor and the Edison Company that's before the legislature.

And I think it's really important that we get these utilities back to buying power and buying it at reasonable rates and getting the state out of that business. That's what we're trying to do: get the rates down and the lights on.

(END VIDEOTAPE)

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