Edison Seeks Power to Avoid Bankruptcy

Though he is devoid of solutions of his own, Benjamin Zycher (“Davis Leaves Edison Up the River Without a Paddle,” Commentary, Aug. 28) seems to be ghoulishly eager for a Southern California Edison bankruptcy in the apparent hope that it will tarnish Gov. Gray Davis’ successful efforts to tame the state’s power crisis.

Zycher is correct that the issue is contentious and has evaded quick solution. But Zycher, as a consultant to the energy industry, certainly cannot desire that the state indefinitely continue to buy power on behalf of the utilities. Both in word and action, Davis has made a strong effort to gain a solution that restores SCE to credit-worthiness and helps get California out of the power-buying business. That is hardly political posturing, as Zycher has charged.

Surely Zycher cannot favor bankruptcy for SCE? He must know the damage to California that a major utility’s bankruptcy can cause.

Davis has proposed a balanced approach that would allow SCE to issue bonds to pay off a major portion of its debt. From this improved position, SCE could then negotiate with its creditors over the remaining debt and, credit-worthy once again, assume the long-term power contracts the state has negotiated on its behalf.

William J. Keese

Chairman, California Energy

Commission, Sacramento