Some experts blame the shortfall on underestimates of population growth and the growth of the state's power-hungry computer and technology industries. There has been no significant increase in power generation in the state in 20 years. Laws hostile to power plants and the state's uncertain power market have scared away potential companies from building new facilities. Several plants are now under construction or being planned, but it will be at least two years before they're producing power. Constant calls for conservation have been mostly ignored, but are now gaining attention after several forced blackouts.
Many consumer groups claim there is no shortage and that the market is simply being manipulated.
First, power companies were forced to sell their power plants and get out of the electricity generation business. Now, some of the electricity produced in these same plants direly needed in California is shipped off to other states. Second, utilities didn't sign long-term power deals that guarantee electricity prices and supplies. At the beginning of deregulation, experts wrongly guessed these contracts would prevent power companies from buying lower-priced electricity at a later time. Now, the utilities are stuck paying whatever the market demands.