FRANK SESNO, CNN ANCHOR: Americans across this country are watching their heating bills and other bills as the new year dawns. But for millions of Californians in particular, this new year brings substantially higher utility bills. And state regulators are expected to approve an emergency rate hikes today. CNN's Fred Katayama is outside the Public Utility Commission Building in San Francisco with more on that. Hello, Fred.</s>FRED KATAYAMA, CNN CORRESPONDENT: Hello, Frank. Well, Frank, the state's Public Utilities Commission will be going into a meeting in a building behind me in about 15 minutes today to try to resolve the state's energy crisis. They are expected to vote to approve the proposed interim rate hike for electricity. Analysts we spoke to say they expect that rate hike to be approved as- is, despite anger expressed from all parties involved, from the utilities to consumers over to Wall Street. Now, yesterday, the commission proposed an interim electric rate hike averaging 10 percent across the board for a period of 90 days. This works out to an average rate hike of 9 percent for consumers, 7 percent for small businesses, and 15 percent for large businesses. That's roughly two-thirds less than what the utilities had been demanding in order to avoid bankruptcy. Now, the utilities contend that they are paying billions of dollars more to buy electricity than what they are allowed by law to charge consumers. Over on Wall Street, investors are expressing the further displeasure, sending the stocks in the parent companies of both utilities, PG&E; and Southern California Edison, south; they are both down in double-digit percentage decreases. As for the utilities, a spokesman for Southern California Edison says, the ruling, if approved, would lead to electricity shortages and blackouts. Meanwhile, over in Sacramento, Governor Gray Davis is expected to mention the energy crisis in a state of the state address on Monday. I'm Fred Katayama, reporting live from San Francisco. TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com
Emergency Rate Hike Expected to be Approved in California Today