With the clear failure of FERC and the Bush administration to protect Californians, it would be foolish for Governor Davis to give away the grid. The FERC order would wait until an emergency to impose price controls regardless of whether prices were skyrocketing prior to the official declaration, and it would set prices at the cost of the most expensive power plants. It also allows for companies to sell power at even higher prices, under certain conditions.
Price caps are an attempt to cover-up the failure of deregulation.
The transmission system is the grid of high voltage power lines through which electricity travels before moving to smaller power lines that distribute power into homes and businesses. By turning the grid over to an RTO, the utilities diminish the regulatory role of state utility commissions. Florida officials are concerned that ratepayers will see higher rates in the RTO system. FERC is looking to federalize the entire energy system. California made the mistake of federalizing electricity generation, we can't afford to make that mistake again.