california 2 13 questions contact robert johnston x 39934 court case denies rate hikes forecast report yesterday federal court los angeles refused allow two california utilities raise rates recoup undercollections power costs since last august expected court would rule favor utilities push rate hike question appeals court instead judge ronald lew refused rule case technical considerations postponed hearing march 5 th utilities face imminent end creditor forbearance without prospect short term rate hikes edison reaches end grace period 200 million payment today 600 million payment thursday absent political cover court impose rate hikes governor state legislature equally tenuous position bankruptcy grows likely regardless legal technicalities bottom line cautioned since last wednesday serious risk creditor group creditors could push bankruptcy perhapsas soon tomorrow period forbearance agreed financial creditors runs ruling reasonable assurance utilities would restored health court victory real fear coherent deal unravelling take much small group financial creditors break ranks prospects supplier creditors look much bleaker dangerous increased temptation utilities declare bankruptcy take chances judge rather california assembly politicians try find way prevent bankruptcy difficult disarray legislature card still played give dollar give hot dog plan state senator burton accurately summed state pumps money utilities return kind asset warrants transmission lines whatever anything brandished front voters proof utilities suffered paid little energy among legislators either proposed solutions one senior figure sacramento told source yesterday afternoon legislators running scared know single legislator either house either side slightest sympathy utiltiies think utiltiies either incompetent shrewd ruling likelihood send officials back drawing board davis propose kind shadow plan friday real substance supposed four days real substantive plan three weeks think earliest period uncertainty lack energy legislature could panic creditors bankruptcy court davis fails cobble together last minute deal rate hikes kind purchase transmission assets parties workout federal bankruptcy court likely scenario flagged last week small ipps file involuntary bankruptcy edison followed possibly pg e involuntary bankruptcy would shield utilities creditor lawsuits temporarily relieve debt payments also speculation press morning creditors talking ch 7 liquidation proceeding yet confirmed sources