Subscribe to one of our news e-mail lists . California's major utilities could end up being bailed out by U.S. taxpayers because of federal orders to generators to continue selling electricity to the state, the chairman of the Senate Energy Committee said Wednesday. California remained at the highest level of alert Wednesday, the 16th straight day that power reserves have dipped to below 1.5 percent of total capacity, making rolling blackouts possible.
Solar power can help California.
The Bush administration extended former President Clinton's emergency supply orders through February 7 to give California state officials a chance to resolve the financial crisis of its two biggest utilities, Southern California Edison and Pacific Gas and Electric. But he said the only solution the president has proposed is to drill for oil in the Arctic National Wildlife Refuge. Economist Larry Makovich told the committee that California's problems are rooted in laws that discourage the construction of new power plants, unlike other states that have successfully deregulated. And it's got another 8,000 coming forward this year. Had they done what Texas did, there would be no shortage right now.