Bill to Establish State Power Authority Heads for Governor's Desk A bill that puts California in the power business is on its way to the governor's desk. The bill would create a state-run power authority that would buy electricity and operate power plants. The power authority would also have the right to seize plants by eminent domain.
Supporters say the bill puts California in the drivers seat when it comes to electricity costs.
They contend the legislation is needed because deregulation of the state's utilities failed to create real competition in the energy market. They also point to the Federal Energy Regulatory Commission's steadfast refusal to actively control rising wholesale prices. Support for the bill was split along party lines. Republican lawmakers say that instead of creating a new government bureaucracy, the state should move toward total deregulation of the electricity market. Governor Gray Davis has indicated that he'll sign the bill.