But Edison isn't counting these profits when pleading its financial woes. This would be Bailout II, and it would be illegal under the deregulation law. Compared to another bailout, bankruptcy might well be less costly for ratepayers in the long run. Contrary to the utilities' fear-mongering, a bankrupt utility would not shut down or be sold off for scrap. With legislative action restoring regulation, the state Public Utilities Commission would control rates.
Bankruptcy also allocates responsibility where it belongs.
Edison pushed for deregulation, and for awhile profited handsomely from it. The first bailout enriched the company, which went on an international spending spree. But in demanding to be in the free market, Edison exposed itself to risk. Now that the market has turned on Edison, its executives want to crawl back into the womb of government protection. The hypocrisy of their stance is rivaled only by their audacity.