California Governor Speaks Out On State's Energy Crisis

SACRAMENTO-During his third State of the State speech Monday night, California Gov. Gray Davis offered a series of proposals targeted at power companies that exploit the public. Calling the deregulation of the state’s electricity system “a colossal and dangerous failure,” Davis said he would take the necessary steps to keep the state’s power system working smoothly.

Davis said that his plan would attack the problems of supply and price over the short and long term. “Electricity is not an exotic commodity like pork bellies, to be traded in the chaotic equivalent of a futures market,” Davis said. “No… Electricity is a basic necessity of life. It is the very fuel that powers our high-tech economy.”

Davis asked California commercial and residential owners to cut back on power consumption 7% by turning out lights when a room is empty or shutting computers off when not in use. During his speech, he also proposed $250 million cash incentives to replace inefficient appliances with more efficient models. Davis said that the state would lead by example. “Every single day, state government will cut its consumption by at least 8 percent,” he said. “During Stage 2 alerts, we’ll save 20 percent.”