At the same time, California has not built a new power plant in 20 years. Six percent may sound small, but when supply is flat, it makes a big difference. Other studies, however, show smaller increases in demand. He said the problem has also been exacerbated by increased demand in the Pacific Northwest. As the region continues its meteoric growth, he said, energy sources California relied upon in the past have dried up.
Consumer advocates say it's too high.
Heller says it's twice what the state should pay. Among those who are said to have agreed to the deal is California-based Calpine. But skeptics in the Legislature say that is because the company wants to build a power plant and needs the blessing of state officials. The fact is that this price is still being negotiated, and Lockyer's investigation is part of the negotiation. In effect, the Republican charged, the attorney general's office is keeping the heat on power suppliers while the governor negotiates a rate.