A state legislative proposal (SB 278X) emerged late last Friday to start the political process for implementing the governor’s agreement (MOU) with Southern California Edison Co. to return the utility to credit-worthiness in exchange for selling its transmission system to the state and assuring below-market power supplies from the utility’s existing fleet of hydro, nuclear and coal-fired power plants.

SB 278X will begin the hearing process with assignment from the state Senate rules committee this week, and is expected to inspire other alternative proposals, some of which were already being informally debated in the state Assembly late last week. The prospects for the MOU, or anything close, surviving the legislative process are extremely dim, according to many political and energy stakeholders. Gov. Gray Davis, according to the political insiders, has not been able to generate much enthusiasm for the deal, and some lawmakers are saying the state should buy the Edison utility rather than try to do a piecemeal acquisition of assets.

The proposed legislation — more than a month in coming since the MOU was announced April 9 — is “a starting pointing to kick off discussion,” said a spokesperson for state Sen. Richard Polanco, who agreed to carry the bill for the governor. “There are a host of opinions on this issue, and this is going to be an open process.”

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