William Simon

For those of you who might be interested, William Simon, a Republican
candidate for governor in California, spoke to the Sacramento Press Club at
a lunch I attended today.? Simon is the son of the late William E. Simon,
the former Treasury Secretary.
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During his presentation, he made a few comments abou the energy situation
in?CA:
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A former U.S. attorney and Rudy Guiliani protege, it bothers him that Gov.
Davis has made a point of prejudging generators and marketers before
investigations are complete (Simon supports full investigations into
generator/marketer practices).? He also called Bill Lockyer's "Spike" quote
inappropriate, and said it violates the canon of ethics to threaten
prosecution.
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He believes it is a mistake to buy the transmission lines and that the focus
should be on increasing supply.? The rhetoric coming from the governor and
AG "do nothing but chill investment," and said he doesn't blame Mirant for
its hesitation to build new plants.
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If the current energy situation were in his lap, he would approach?it by
getting everybody to the table?to try to find an overall solution.? It's
being done piecemeal now, he said, and that's not effective.
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He sees three elements to?addressing the problem:
1.? Limit state involvement -- he does not support a public power authority;
2.? Get supply online;
3.??"Restructure,"?which he related to taking a sagging company and figuring
out a concerted approach?to fixing its problems rather than?putting out fire
after fire.?
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He believes the generators should relieve some of the debt.
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He was asked if?an Edison bankruptcy?would be a bad thing.??He said
it?"can't be good," but prefers to?think of?Edison's status as a
consideration to the overall approach but not necessarily as the ultimate
goal.? He indicated that bankruptcy is not favorable but should not
necessarily be avoided at any cost.