Manufacturers Support Efforts to Return PG&E and SCE to the Business of Buying Power
CMTA will help facilitate a responsible Edison fix in third special session; offers preliminary support of PG&E’s reorganization approach

Sacramento, CA - In response to Governor Davis' call for an unprecedented third special session of the California legislature this year, the California Manufacturers & Technology Association (CMTA) renewed its support for the concepts contained in SBX2 78 as passed by the California Assembly in early September.

"Before it was amended by the Senate to shift more cost on to the utilities' largest customers, the language in SBX2 78 represented a fair compromise and was the result of many long hours of negotiations," said CMTA president Jack M. Stewart.

SB2X 78 was passed out of the state Assembly in early September, but failed to receive a vote of concurrence in the Senate before the Legislature adjourned.

Stewart believes Edison faces an uphill battle crafting a solution to its financial problems in the legislature but hopes that any new proposal treats all customer groups fairly. “The desire of some legislators to put all the Edison debt on large businesses is a recipe for economic disaster and manufacturers are paying close attention to the policy ideas coming out of the State Capitol. California is on the brink of a recession and more unwarranted employer costs buried in an otherwise responsible bill could speed this decline.”

Stewart also signaled CMTA's preliminary support for the structural approach set forth in the PG&E reorganization plan submitted to the federal bankruptcy court.

“PG&E has proposed a plan to restore its creditworthiness without the need for implementing legislation, which Edison has been unable to obtain. The bottom-line goal should be to get both PG&E and Edison back in the business of buying power for their customers as quickly as possible and allow the state to refocus its attention on California's weakening economy," Stewart concluded.

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