PUC Staff Questions Edison, L.A. Times Deal

The energy division staff of the state Public Utilities Commission has recommended that Southern California Edison be required to stop soliciting subscriptions for the Los Angeles Times. The staff is also recommending that the commission order Edison to file an advice letter with the agency if the Rosemead-based utility wishes to continue the program, under which operators at its call center ask people who call to establish electrical service if they want to subscribe to The Times. The PUC staff contends that the arrangement with the newspaper, which began in November 1998, violates PUC rules because Edison did not seek the approvals required for a new service as part of the continuing restructuring of the California electricity industry. The utility, a division of Edison International, had argued that the subscription solicitation program was not a new service because the call center previously had solicited business for the utility’s unregulated Edison Source affiliate before those activities were prohibited. In addition, negotiations with The Times, which is published by Times Mirror Co., predated the new rules, Edison said. A Los Angeles Times spokesman said the newspaper has considered the arrangement with Edison “a perfectly legitimate, acceptable and approved partnership.” The five-member commission is scheduled to review the matter at its Jan. 6 meeting.