FULLAM, District Judge.
When the Debtor went into reorganization on June 21, 1970, it owed Consolidated Edison of New York, Inc., (hereinafter Con Ed) approximately $1,200,000 for electricity and steam services furnished, chargeable to some 124 separate accounts. Shortly thereafter, before the Trustees had been appointed, Con Ed joined with various other utilities in petitioning the Court for an order requiring the Debtor to pay its past due bills, and also to pay current bills as they became due. In addition, Con Ed sought an order of Court requiring the Debtor to post a deposit in cash, as security for future bills, as authorized under state law.
On July 8, 1970, I entered Order No. 18, which (1) directed the Debtor to pay all current bills for electrical and steam services, within 15 days after the bills were rendered; (2) deferred ruling on the claim for payment of pre-bankruptcy claims, pending review of the matter by the Trustees; and (3) denied Con Ed's petition for security deposit, without prejudice to a renewal of the request later, if circumstances changed.
Con Ed has renewed its request for an order requiring the Trustees to pay the pre-bankruptcy claims, totalling approximately $1,200,000, and also requiring the Trustees to deposit with Con Ed the sum of $1,726,215 as security for the payment of utility bills hereafter accruing.
I. The Security Deposit
Con Ed invokes Section 120 of the Public Service Law of the State of New York, 47 McKinney's Cons. Laws of New York Ann. c. 48, § 120 (1970):
"[An] electric corporation * * * may require any person to whom such corporation * * * shall supply * * * electric * * * steam * * * services to deposit a reasonable sum of money according to the estimated quantity of such services necessary to supply the same for two calendar months, to secure payment for such services actually rendered. * * *"