It is incumbent on California to protect its own interests. Those power plant owners and the many companies that broker their electricity argue that price spikes reflect California's fundamental shortage. No major power plants have been built in the state in the last 10 years, while demand has expanded rapidly. Although temporarily painful, those price spikes will attract companies to California to balance supply and demand, electricity sellers and free-market proponents argue. Peace accused the companies of threatening Californians with warnings that price controls will drive away investment in new power plants.
Energy companies argue that they are investing billions of dollars in California.
Six power plants proposed by private firms have been approved and four are under construction. Threatening nationalization does not provide that. E. When market prices shot up in May, San Diegans paid those prices directly. A political furor ensued, until the Legislature in August temporarily capped prices in San Diego. Peace kept a low profile then but now appears to be trying to reshape his image.