The report was issued by researchers at the university'sAnderson School of Business, which has established a reputation forbeing among the most accurate forecasting groups in the country.The study also marks the first time a major forecast group has saidCalifornia's power crisis will indeed push the entire US intorecession.

"We still expect sluggish growth through the rest of the yearand two quarters of negative growth commencing no later than (thefirst quarter) of 2002," says Edward E. Leamer, the economist wholeads the forecasting team. "Although the interest- and tax-ratecuts may help the train move faster, there is no light at the endof the tunnel."

The soaring cost and uncertain supply of power in California arealready causing many firms to delay expansion projects, which hasslowed growth here and is having a ripple effect across the US, theUCLA report says. Troubles have been compounded by the problemsfacing dot-coms and the tens of thousands of jobs those companieshave eliminated.