“The new market structure is broken and must be discarded,” saidEdison International Chairman John E. Bryson yesterday, in astatement warning that his company soon will be “compelled to takedrastic measures,” including “rationing” electricity. He called fora return to regulation, where needed.

“It is time to break decisively from this failed [deregulation]policy. We need swift action from state officials to bring aboutimmediate and longer-term fixes to a broken system. On behalf ofEdison…I call on policy makers to act with the urgency thissituation demands. We need to reform and, where necessary,re-regulate California’s electric system.”

Edison is “prepared to do our part in contributing to acomprehensive solution. However, any comprehensive solutionrequires urgent action on the sensible, and moderate first stepsthat we have put forward to the CPUC, including a stable system ofrates that allows us to collect for electricity we have procuredfor our customers at no profit for our company. This will allow usto continue providing this vital service in the future, and avertdamage to the reliability of California’s electric system,” saidBryson.

Since May, he noted Edison has paid more than $3.5 billion abovewhat current CPUC-established rates allowed for purchasing powerfor customers. To fund the $3.5-billion deficit and to finance theadditional purchases of electricity, Bryson said Edison has had toborrow huge sums of money in the commercial markets.

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