It seems less likely now that the state is actually going to take over utility power plants. They are working on a plan that would give the state some sort of equity interest in the utilities in exchange for helping the utilities get out of their current financial predicament. At this point the utilities are reluctant to turn over any hard assets such as power plants or transmission lines to the state, because they have spent billions of dollars over the years constructing them. And if they turned them over, they would basically become just bill collectors. That is part of their business, but they feel that is not what they want to be as companies in the future.
Solar power can help California.
The only ramifications at this point are political. Utilities throughout history have transferred profits to shareholders. It is a normal part of their business model and is perfectly legal. The money that they transferred to share holders is gone. There is no way that can be recovered.