Gary's letter responding to a series on "poor Edison" in the LA Times.  I 
reviewed it in advance -- looked good to me.

Sue Mara
Enron Corp.
Tel: (415) 782-7802
Fax:(415) 782-7854
----- Forwarded by Susan J Mara/NA/Enron on 05/16/2001 08:27 AM -----

	Gary Ackerman <foothillservices@mindspring.com>
	05/15/2001 11:36 PM
	Please respond to foothillservices
		 
		 To: letters@latimes.com
		 cc: 
		 Subject: Letter in re "Edison's Agony"



To the Editor; 

The series of articles published last week by Ms. Cleeland called "Edison's 
Agony" continues your unbroken string
of balanced and informative reporting on the California energy crisis.  My 
group of merchant generators and power
marketers include many pre-competition Edison empoyees, and employees from 
other utilities as well.  We are
sympathetic to the situation of those who currently serve under the Edison 
banner. 

We note, however, that something is amiss in your series, and only lightly 
touched.  That is, the role of SCE in
advancing the legislation and policies in favor of competition in Californa. 

It was SCE, and its CEO Mr. Bryson who masterminded the state deregulation 
legislation.  Although SCE's Mr.
Bryson  objected vigorously to forced sales of power plants, and asked for 
long terms power purchase contracts, those
lost battles gave way to winning the stranded-cost-recovery war. 

SCE did well in adopting to the new reality, until the wholesale rates flew 
up, and left the utility unable to recover its
costs.  SCE made a deliberate calculation in May of 2000 to leave its 
customers unprotected from cost shocks.  There
was no hedging undertaken for future power purchases when the wholesale 
forward prices exceeded SCE's historical
generation component of rates.  As a result, the debts piled up. 

Empathize with career employees of SCE, and with dedicated, hard working 
linemen who are always ready to serve at
the cost of their private pleasures. But please, get it right.  Much of this 
misery was the avoidable direct consequence
of actions taken by, not avoided, by the SCE management team. 

Gary B. Ackerman 
Executive Director 
Western Power Trading Forum
6155 Almaden Expy, Suite 230
San Jose, CA 95120

650-324-3250