Ok, I figured out that the reason is because powersaved is not started.
When I do invoke-rc.d powernowd start It complains:
* Starting power management daemon powersaved
[fail]
##########################################################
# ACPI system but acpid not running. #
# Please install acpid package, then restart powersaved! #
##########################################################
invoke-rc.d: initscript powersaved, action "start" failed.
/var/lib/dpkg/info/powersaved.postinst: 11: check_return_code: not found
Manually starting acpid and then powersaved fixes it...
--
Suspend broken in edgy (worked in dapper)
https://launchpad.net/bugs/66337
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