Both residential and commercial customers have enjoyed stable retail rates for the past nine months, even though wholesale prices have skyrocketed. In order for the state or the utilities to continue to buy power for California, ratepayers must begin to cover the wholesale costs. If there are any silver linings in these dark clouds, it is that price increases will help reduce demand this summer. Only by bringing supply and demand into balance will California be able to prevent blackouts. Preventing blackouts is one of the California Chamber s highest priorities.
Conservation is an absolute necessity.
Additional supplies also are critical. One action that will help provide additional power immediately is to allow facilities with backup diesel generators to operate the generators to help prevent blackouts, rather than authorizing such use only after blackouts occur.