The Southern California city was the first in the state to feel the impact of unregulated energy prices when San Diego Gas and Electric began passing on certain costs to consumers. Owned by Sempra Energy, San Diego Gas and Electric was the first to meet state qualifications that allowed it to pass on the costs. California Governor Gray Davis is looking at a number of solutions. New, higher power bills have some businessmen reeling. Law spawns outrage An energy crisis has developed throughout California in recent months, with the state sometimes reaching the point where it is down to its last 5 percent of electricity.
Authorities say a lack of adequate power plants is at least partly to blame for the shortage.
The Legislature put a price cap on bills for residents and some small businesses. The cap came with a catch, however. Beginning in 2002, customers will have to pay the difference between what they are being charged today and the actual cost of energy production covered by the utility. In essence, consumers will face an old-fashioned balloon payment. Sempra energy officials see the cap in a different light.