Davis Pledges To Solve State's Power Crisis

Gov. Gray Davis pledged Friday to do whatever it takes, including seizing some privately owned power plants in California, to help get the state out of the electricity crunch. Gov. Davis Gives Generators Ultimatum "I will leave no stone unturned to protect the 34 million people of this state and the businesses I represent," Davis said. The governor, who signed a bill this week to create a state power authority that could invoke eminent domain and seize power plants, said that under normal circumstances he would be loath to take such action. "But if (generators) are taking advantage of California, if they are gouging us --which they are -- and if they do not help us this summer, they leave me no choice and I will do it," he said. Davis said that he met with generators last week and told them: "You know you've been ripping us off, acting in a predatory manner. If you do it this summer, you leave me no choice but to take your plants and sign a windfall profits tax." The generators' reaction? "They sat there like sphinxes," Davis said. "They said nothing. But they heard me. They heard me clear." Davis was in town to meet with officials from San Diego's Building Owners and Managers Association. He praised the members of the groups for asking janitors to clean one floor at a time after hours to avoid having too many lights on, and taking other energy-saving steps. During a luncheon, they talked about more ways to conserve, Davis said. Negotiations between the state and Sempra Energy to acquire the utility's transmission lines are "going very well," the governor said, adding that only a few details remain to be worked out. With plant construction under way, the state will have more power capacity than demand by the end of 2003, "which is what we need to have for electricity deregulation to work," Davis said. He said that President Bush should instruct his appointees to the Federal Energy Regulatory Commission to help provide relief in the meantime. "The Federal Energy Regulatory Commission has found the rates are unjust and unreasonable, but they haven't had the guts to order the refunds that ratepayers are entitled to," Davis said. The state is doing its part, the governor said, by building new plants and saving electricity "at record rates."

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