Davis is even more timid when it comes to the idea of taxing the generating companies into lowering their rates. While he has said he would be open to tax increases for companies that make more than 100 percent profit, he hasn't said he would sign such a bill. Because of that, the tax measures are moving slowly through the legislature. Davis has been even less willing to take on utility companies directly through plant seizures, a proposal he talked about in his State of the State address in January but has since abandoned. Because he declared a state of emergency, the governor can order an immediate takeover of any facility while leaving the price to be negotiated over time.
Consumer advocates see plant seizures as the only way out in the near future.
Until we show them who's boss, the prices will just go up and up. Smutty-Jones says private companies would leave California immediately if the state cracks down on price gougers, causing a massive shortage of electricity and rolling regular blackouts. He says member companies would have a similar response if the state enacts the profits tax. That's where we step in with a California Power Authority. Angelides adds that cities relying on municipally owned power grids are doing fine.