Long Beach Granted Lien Against Edison

The city of Long Beach was granted a $9-million lien against assets of Southern California Edison Co. for unpaid electricity bills and has frozen funds in an Edison bank account to cover the lien, Edison general counsel Stephen E. Pickett said.

Edison will appeal the lien, Pickett told debt holders during a conference call.

Long Beach sued Edison in February because the utility had not paid for electricity produced by a city-run electricity generator on Terminal Island that is fueled by trash.

In January, Edison’s financial problems had become so severe that it stopped paying for electricity, including power produced under contract by such alternative generators. Edison resumed payments in March but still owes generators millions of dollars in back payments.

Long Beach is owed $14 million for November through March, and those funds are needed to pay bonds that support the power plant, Long Beach City Atty. Robert Shannon said.

Nearly 30 generators have sued Edison, seeking to attach assets or to get out of their contracts so they can sell their power at higher prices on the open market.

Three other writs of attachment have been granted to generators, but none has been able to produce the bonds required to attach assets. Long Beach was not required to post a bond because it is a municipality, Pickett said.