The plan hit some immediate roadblocks. A key federal energy regulator took a dim view of the proposal. A prominent consumer advocate assailed the plan as a giveaway, noting that Davis is offering to pay 2.3 times the value the transmission lines carry on Edison's books. And some important lawmakers criticized the proposal as well. Davis also is negotiating to buy San Diego Gas and Electric Co.'s share of the grid and said he expects to announce an agreement next week.
Obstacles abound, though.
Assembly Republican leader Bill Campbell said the proposed purchase price is too high. A spokesman for the generators, Gary Ackerman of the Western Power Trading Forum, said the wholesalers aren't likely to forgive any debts but would be willing to talk. The Edison grid deal is still in the embryonic stage. Robert Kinosian, an analyst with the Public Utilities Commission's Office of Ratepayer Advocates, said the Edison grid can probably be purchased without rate increases. That means Edison would keep the lands but forgo its right to develop them, easing environmentalists' fears that Edison would sell off the land to developers to raise cash.