A comprehensive study of the proposed buyout by TURN, The Utility Reform Network, proves that the deal is actually a blatant give-away.
Consumers get little value in return.
Hoge said a careful examination of Davis' Memorandum of Understanding or MOU with Edison International reveals no gains for the public that justify the state paying billions more than book value for the transmission system. Other items create the illusion of value for ratepayers while actually benefiting SCE exclusively. Even if successful in court, Edison stands to gain more under the MOU than through the lawsuit. Davis' proposal continues to exempt the utility's cash cow, nuclear generation, from the requirement to sell at cost-based rates. Claims that tax refunds will be dedicated to the utility are disingenuous because this is already required by previous agreements, and will not be used to reduce ratepayer contributions.