Sacramento, California -- The California State Senate today passed legislation authorizing the state to issue $10 billion in bonds to buy power for its cash-strapped utilities.

The legislation, which passed 27 to 8, allows the state to enter into long-term contracts to buy electricity for PG&E Corp.'s Pacific Gas & Electric, Edison International's Southern California Edison and Sempra Energy's San Diego Gas & Electric.

The measure is the first of two bills designed to rescue PG&E and Edison from bankruptcy. It will make the state a major buyer of electricity for years to come.

``We don't have a lot of choices and this bill stops the hemorrhaging,'' said Democratic Senator James Costa. ``If we don't pass these bills, our utilities will go bankrupt.''

The state assembly plans to vote later tonight on the bill and Governor Gray Davis said he will sign it.

This legislation doesn't address PG&E and Edison past debts, which total more than $11.5 billion. The legislature is still debating a separate measure that would give the state an equity stake in the utilities, most likely stock options or warrants, in return for paying down a portion of their debts.