----- Forwarded by Miyung Buster/ENRON_DEVELOPMENT on 09/29/2000 03:12 PM 
-----

	djcustomclips@djinteractive.com
	09/26/2000 02:00 PM
	Please respond to nobody
		 
		 To: 86464@WCTOPICS.djnr.com
		 cc: 
		 Subject: Utilities, Electric: Deregulation: SoCal Ed To Consider Litigation 
To Recover Power Costs


 
[IMAGE]
SoCal Ed To Consider Litigation To Recover Power Costs 
? 
09/26/2000 
Dow Jones Energy Service 
(Copyright (c) 2000, Dow Jones&Company, Inc.) 

LOS ANGELES -(Dow Jones)- Southern California Edison said if the state's 
Public Utilities Commission doesn't allow the utility to recover about $2 
billion in unpaid power costs when a state imposed rate freeze is lifted it 
will consider litigation to ensure recovery of electricity costs, according 
to a filing made late Monday with the Security and Exchange Commission.   

"The CPUC has denied requests by (Southern California Edison) and other 
California utility companies to allow recovery of the transition revenue 
account undercollections after the end of the statutory rate freeze," the SEC 
filing states. "These decisions pre-dated the unforseen run-up in wholesale 
market prices beyond the level of prices that should have been produced by 
functioning competitive markets." 

SoCal Edison consumers are currently paying a fixed rate for electricity as 
required by the state's landmark 1996 deregulation law, which is far below 
the 20 cent/KWh wholesale rate SoCal Edison pays to procure the power from 
energy producers. As a result, the company's debt is growing by several 
million dollars a day.   

If the company is unable to recoup the money from its ratepayers, 
shareholders would be responsible for the costs, said SoCal Edison chief 
financial officer John Scilacci.   

The company would go to court seeking authority to have its customers pay 
back the debt, if required, rather than hold its shareholders liable, 
Scilacci said.   

SoCal Edison said in the SEC filing that it has used "virtually all of its 
CPUC-authorized capacity for short-term borrowing."   

The utility is restructuring its loan arrangements to allow for additional 
"short-term borrowing capacity to meet its liquidity needs."   

The utility has recently received a negative rating from several Wall Street 
debt rating agencies.  

   -By Jason Leopold; Dow Jones Newswires; 
323-658-3874;jason.leopold@dowjones.com



Folder Name: Utilities, Electric: Deregulation 
Relevance Score on Scale of 100: 95

______________________________________________________________________ 
To review or revise your folder, visit Dow Jones CustomClipsor contact Dow 
Jones Customer  Service by e-mail at custom.news@bis.dowjones.comor by phone 
at 800-369-7466. (Outside the U.S. and  Canada, call 609-452-1511 or contact 
your local sales representative.) 
______________________________________________________________________ 
Copyright (c) 2000 Dow Jones &Company, Inc. All Rights Reserved