State Would Bungle Edison Ownership

Re “Should California Buy All of Edison?” June 1: I certainly hope that the state doesn’t buy all of Southern California Edison in an attempt to “give the state a huge head start in its efforts to set up a statewide power authority, ultimately capable of generating and delivering electricity.” The current power problem was caused by two colossal blunders by state officials. Both blunders showcase the gross incompetence of these officials in the economic arena.

First, they chose to deregulate an oligopoly (i.e., a market with few sellers). Anyone who has earned more than a D-minus in economics knows that unregulated competitive markets (i.e., many sellers, easy entry of new sellers, buyers don’t care which seller they buy from, etc.) provide low prices for consumers but unregulated oligopolies do not. Second, these officials forbade the electric utilities to enter into long-term contracts for the purchase of power.

None of us would allow a surgeon to “fix” a medical problem caused by the surgeon’s own incompetent actions. Why on Earth would we want state officials to “fix” the electric power problem?

Rod Freed

Mission Viejo

“Better Than Bankruptcy” (editorial, June 4) opposes a state takeover of Edison, saying “California needs to work itself out of the power business, not further into it.” Doesn’t the city of Los Angeles have municipal ownership of electric power? Did the rate increase affect the residents of L.A.? Did these residents have any brownouts or blackouts? Obviously deregulation didn’t function the way the proponents thought, and city or state ownership of utilities or any other monopolies would be a reasonable approach.

Perry M. Benson

Valley Center

Last year we didn’t have an energy crisis. This year, right after the election, we do. Last year we had plenty of natural gas. This year we don’t. Last year our energy consumption was about the same as this year. Last year alternative energy was producing, and the producers were getting paid. This year they are not.

This year many in the federal administration have ties to, or stock in, the energy producers. Last year they didn’t. This year the DWP is selling energy. This year the state is buying. Last year Edison and PG&E; were hot for deregulation. This year we have it. Except for executive salary bonuses, both companies are going broke. Their parent companies are getting rich. Coincidences . . . ?

Arthur Yuwiler

Woodland Hills