Governor Davis has asked the California Independent Systems Operator to impose caps on wholesale energy purchase prices. In CERA's observation, deregulation creates value when the market is structured properly. California's market was a failed design of partial deregulation, not a failure of deregulation. Governor Davis and the Department of Water Resources have taken over the duties of purchasing power. Davis and some Legislative Democrats urge a state-take over of the power grid.
Some groups urge the state to seize all power plants.
Considering the extra costs we all will pay due to the Governor's prolonged inaction, charging interest is truly adding insult to injury. I find it interesting that despite much local growth, San Bernardino County has only grown slightly faster then the rest of the state. All 5 Assembly districts that cover San Bernardino County are overpopulated. This means they have more voters within in their boundaries than they should. More analysis coming next week.