California Governor Moves to End 'Energy Nightmare'

LOS ANGELES-Saying that the once-heralded deregulation of the state’s electricity business has become an “energy nightmare,” California Gov. Gray Davis has outlined a broad plan that would include new authority for the state to buy or build power plants of its own and even seize privately owned facilities if the current shortage gets much worse.

In his third annual State of the State speech, Davis also called on California commercial and residential property owners to cut back consumption by 7%, by taking steps as simple as turning out lights when a room is empty or shutting down computers at night. He also proposed $250 million in cash incentives to replace inefficient refrigerators, washers and air conditioners with more efficient models.

“California’s deregulation scheme is a colossal and dangerous failure,” Davis told a joint session of the Assembly and Senate that was broadcast across the state and nationally on C-SPAN. “It has not lowered consumer prices, and it has not increased supply. In fact, it has resulted in skyrocketing prices, price gouging and an unreliable supply of electricity– in short, an energy nightmare.”