In the absence of a state legislative solution or another negotiated settlement to rescue financially troubled Southern California Edison Co. from bankruptcy, a small Long Beach, CA-based street lighting company is continuing its longshot quest to buy the utility and its parent, Edison International, by establishing a network of cities and townships served by Edison to ensure the deal’s economic and political viability.

“Whatever has or has not happened in the legislature really hasn’t affected us; we have been moving forward,” said Bill Simmons, CEO/principal owner of privately held City Light & Power, Inc., which now has 36 cities, including the City of Long Beach, the largest served by Edison, that have given preliminary approval to join a specially formed quasi-public sector financing organization, called a “joint powers authority.” Last month, Simmons indicated he might have as many as 200 cities signed up, but he noted that Edison is “putting tremendous pressure” on local governments not to join.

“We’re still working on our project,” Simmons said last week. “We have enough cities right now that have shown a high level of interest that we have that on the table, and we’re continuing to move along with internal/external analyses and we’re also rounding up financing.”

Simmons said he intends to move ahead even if a legislative rescue plan is passed, unless it is a more comprehensive package that gives Edison a lot more that currently contemplated.

He said Edison is putting a lot of pressure on cities not to join the creditors group, which might take the utility into involuntary bankruptcy, and put a lot of pressure on the cities to drop off City Light’s list of supporters. City Light’s Kansas City-based investment banker, George K. Baum is working with four Wall Street firms to line up potential financing, said Simmons, who noted that even in the wake of the terrorist attacks, Baum has received “many, many calls” expressing interest from potential investors.

“I think a lot of investors are thinking it is okay to deal with us in light of what the governor is trying to do,” Simmons said. “I don’t think anyone is knocking down (State Treasurer Phil) Angelides’ door to lend him money (to buy state bonds). Because of that, I think the money market may be looking elsewhere.”

City Light’s proposal is to bid for the entire Edison International family of companies, including the utility, sell off the nonutility assets, which include multi-billion-dollar power plant developer, Edison Mission Energy, and keep the utility, using the proceeds from the sales of the nonutility assets to operate the utility as a joint powers authority (JPA). Simmons earlier indicated he would probably also sell off all of the remaining utility generation and transmission assets, giving the state the first right of refusal for them, leaving a local distribution (“wires”) company as the JPA.

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