New York utilities are allowed to sign long-term contracts to hedge against price swings, and they did so. This more than anything else is what is saving New York from volatile prices. New York's power comes from a more diverse set of fuels than California's. Fluctuations in one fuel price, like natural gas, have less effect in New York. California's power demand has been growing much faster than New York's.
Demand is produced by a combination of population and the economy.
Slower growth gives us more time to act. California does not even have substantial new power plant projects in the pipeline. Even rolling blackouts failed to convince Californians to accept a new power plant in their neighborhood. In contrast, New York has substantial plans. NERC reports that New York is supposed to have 5,400 megawatts of new generation online by the end of 2002.