Freed by deregulation from government oversight, the dozen wholesale energy companies that generate nearly half of California's electricity supply are now manipulating the supply of electricity to create shortages. Bailout II 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 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. Now that their judgment has proven wrong, Edison's executives want to crawl back into the womb of government protection. The hypocrisy of their stance is rivaled only by their audacity. The shareholders should foot the bill, not the ratepayers.