Activists Will Not Pursue Ballot Measure on State Edison Bailout

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Activists Will Not Pursue Ballot Measure on State Edison Bailout

POLITICS

by Howard Fine

Remember all that talk last year of an energy initiative on this November’s ballot? Well, it’s been quietly dropped.

As the state’s energy crisis deepened, Harvey Rosenfield (the man who placed Proposition 103, the auto insurance rollback measure, on the 1988 ballot) threatened to place an initiative on the ballot to repeal any rate hikes enacted as part of a rescue package for insolvent Southern California Edison. The initiative stirred so much concern among legislators that they even coined a term for any legislation they were considering that would need to stand up to the initiative test: “Harvey-proofing.”

But then came the Oct. 2 deal between the state Public Utilities Commission, headed by Gov. Gray Davis appointee Loretta Lynch, and Edison. The deal was designed to retire $3 billion of Edison’s debt through a combination of continued high electricity rates and the elimination of shareholder dividends.

Since the deal was a settlement of a court case brought by Edison against the PUC and was approved in federal court, it was not subject to legislative action. Suddenly, it became much harder for Rosenfield’s group, the Foundation for Taxpayer and Consumer Rights, to put something on the ballot that would not be declared invalid because it overturned a court decision.

“The PUC really tied the hands of the people of California with this secret deal with Edison,” said Doug Heller, consumer advocate with the FTCR.

The fact that the energy crisis is no longer on the front pages may have also played a part in the decision to put the measure on hold. Also, the last time Rosenfield placed an energy measure on the ballot, back in 1998, it got clobbered as the utilities and other energy providers spent $40 million to defeat it.

But Heller said the initiative isn’t necessarily dead. “We would like the courts to declare that the PUC had no authority to make such a deal affecting rates without consulting the public. If such a finding is made, then we might reactivate the initiative,” Heller said.

Noelia Returns

Noelia Rodriguez, former press aide to Mayor Richard Riordan and now press secretary to Laura Bush, took her first real vacation since moving to Washington and came back to L.A. over the holidays. One of Rodriguez’s close friends, Elena Stern former press aide to Antonio Villaraigosa who is now at the Century City office of public relations agency Burson-Marsteller decided to throw a party for Rodriguez and invited the local political media to a reception at Cava near the Beverly Center.

Former colleague and now-City Attorney Rocky Delgadillo showed up, as did former Riordan aide and new Councilman Tom LaBonge, who presented Rodriguez with an official proclamation. Also present was a relaxed-looking Villaraigosa.

Rodriguez’s mother recounted their recent Thanksgiving together. The two were invited to dinner at Camp David with the First Family. It was also a bipartisan affair, since Noelia Rodriguez is a registered Democrat.

The top question on everyone’s mind was whether Rodriguez was entertaining any thoughts of working once again for Riordan as he campaigns for governor. Riordan reportedly made efforts to recruit Rodriguez a few months back.

“Absolutely not,” Rodriguez said. “Although I really love L.A., working in Washington has been such a wonderful experience. I’m having the time of my life.”

Staff reporter Howard Fine can be reached by phone at (323) 549-5225, ext. 227, or by e-mail at

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