With the hole in California´s budget expected to deepen to 14 billion dollars, state power regulators are scheduled tomorrow to approve a plan to settle the state´s electricity-buying debt.
Officials have haggled for months over the best way to launch one of the largest municipal bond offerings in U-S history. The bonds will pay more than ten billion dollars the state has
spent buying electricity during its power crunch.
To pay the tab, the Public Utilities Commission is meeting to approve a plan that would let the state issue almost eleven billion dollars in bonds.
If the bonds don´t hit Wall Street by June 30th, the end of the state´s fiscal year, the budget deficit would expand by another six billion dollars.