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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: upanddown who wrote (422)	2/26/2001 8:16:43 PM
From: Second_Titan	Respond to of 23153

I hope this incompetent governor does not follow Reagan's path to the White House. I hope Davis and the western Governors dont have much success with the prices caps they are pushing. Most at risk for me are my holdings in DYN. With Many Urging Action, California's Davis Waited Dow Jones Newswires (This is a revised version of a story that ran Friday.) By Jason Leopold OF DOW JONES NEWSWIRES LOS ANGELES -- California Gov. Gray Davis passed up several chances nearly a year ago to head off the state's electricity crisis, according to documents obtained by Dow Jones Newswires. Davis last Friday announced a deal under which California will buy Edison International (EIX) unit Southern California Edison's transmission lines for $2.76 billion. It's intended to help the utility and stabilize volatile power markets. But the deal comes long after the summer of California's discontent in 2000, marred by rolling blackouts and electricity price spikes that hit businesses and consumers. As early as last June, lawmakers asked him to look into problems brewing on the power grid, but he declined. Davis spokesman Steve Maviglio said the governor didn't ignore the problems that have lead to a bailout plan that could include the biggest bond issue in U.S. history. "The governor began acting decisively on the energy situation in the summer," said Maviglio. In August, Davis asked the Federal Energy Regulatory Commission to investigate the California power market for evidence of illegal manipulation. Well before that, on June 12, 2000, the week that rolling blackouts swept through Northern California, state senators Steve Peace, D-Chula Vista, and Jim Brulte, R-Rancho Cucamonga, wrote Davis a letter asking him to use his emergency powers to shorten the permitting process for new power plants. At the time, consumers in San Diego had become the first ever in the U.S. to experience electricity price shocks. Davis didn't respond to the plea by Peace and Brulte, both of whom were architects of the state's flawed 1996 deregulation law. The two said action by the governor could stave off an electricity crisis of epic proportions due to unexpected demand. "An exercise of your emergency powers could speed the permitting of power plants and hasten the end of the present (power) emergency," Brulte and Peace wrote. In July, power generators wrote the governor urging him to allow the state's three investor-owned utilities to sign long-term, fixed rate contracts to buy electricity. Duke Energy (DUK) sought permission to sign contracts to provide 2,000 megawatts to the utilities for five years at $50 per megawatt-hour until "additional generation resources can be built." But the California Public Utilities Commission denied several requests by the utilities to sign long-term contracts. Commissioners said they feared liquidity would be reduced in the state's wholesale market. Last month, Davis proclaimed that long-term contracts would "ensure reliable supplies for Californians for years to come" at an attractive price. In August, Republicans in the State Assembly wrote Davis asking him to call a special session of the legislature to address the growing energy troubles. Davis didn't act because he was awaiting the results of a crisis investigation he had commissioned from the CPUC and the Electricity Oversight Board. Writing On Wall Told Ugly Tale Later that month, the CPUC and the Oversight Board wrote in their report: "California is experiencing major problems with electricity supply and pricing caused by policies and procedures adopted over the past ten years...These serious, but thus far isolated, examples represent a precursor of what lies ahead for California's economy over the next 30 months." Davis then asked FERC to investigate the state's power market. In September, he signed several executive orders related to the crisis, one of which shortened the time it takes to obtain a permit to build a new power plant. He also formed a "green team" to promote electricity conservation, and ordered state buildings to curtail energy usage by 50%, according to Miviglio. In short, it's been too little, too late all along with Davis, according to some. Many energy companies and Wall Street banks charge that the governor's response to the crisis has been sluggish. Has the energy crisis cost him reelection and a shot at the White House? Ten of 20 Edison International (EIX) unit Southern California Edison Co. customers interviewed by Dow Jones Newswires said they think Davis is doing a good job. The others said he's taking too long to find a solution. "This could have been solved last year if the utilities raised their electric rates," said Michael Kirby, a West Hollywood resident. "But now the state wants the taxpayers to finance all of these bonds. It doesn't make sense." Those who support the governor say it takes time to sort through the thorny issues that contributed to the problem. "Deregulation is a complex issue," said Paul Langford, a Newbury Park resident. "It's important that he comes up with a solution but it shouldn't matter how long it takes. He's trying to protect Californians, which is a good thing."