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Sac Bee, Thurs, 3/29: "State seeks more money for power buys" Updated, 4:41pm Sac Bee, Fri, 3/30: "Guess again: Rate hike impact underestimated" Sac Bee, Fri, 3/30: "Bush says energy is paramount concern" San Diego Union, Thurs, 3/29: "California pulls out the stops to attract= =20 power plants" San Diego Union, Thurs, 3/29: " California utility must say where blackouts= =20 will happen"=20 LA Times, Fri, 3/30: "Raft of Bills Aimed at Energy Conservation" LA Times, Fri, 3/30: "2 Firms Start Repaying State for Power Buys"=20 LA Times, Fri, 3/30: "Ads Support Davis Actions, Legislature in Power Cris= is=20 " LA Times, Fri, 3/30: "Take-Charge Governor Forfeits on Energy " = =20 (Commentary) SF Chron, Fri, 3/30: "Blackout Warnings For Police=20 PG&E giving notice to ease traffic jams " SF Chron, Fri, 3/30: "Energy Crisis Dogs State Democrats=20 Conventioneers likely to discuss Davis' troubles " SF Chron, Fri, 3/30: "Canada seeks to grab bigger role as U.S. energy=20 supplier " Mercury News, Thurs, 3/29: "Police unsure how to enforce lights-out rule" Mercury News, Fri, 3/30: "PG&E ordered to share details about blackouts" Mercury News, Fri, 3/30: "We need power -- in our back yard " Orange County, Fri, 3/30: " 'Interruptible' penalites may be revived" Orange County, Fri, 3/30: "2 cities to be warned if blackout is imminent" Individual.com, Fri, 3/30: "Energy crisis could cost billions, says=20 California's controller" Individual.com, Fri, 3/30: "[B] FULL/ Edison Intl unit pays $43.5 mln to= =20 water resources dept" Individual.com, Fri, 3/30: "EPRIsolutions Tackles California Power Problem= s" ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= --- -------------- State seeks more money for power buys Updated: March 29, 2001 - 4:41 p.m.=20 Gov. Gray Davis on Thursday asked lawmakers to approve spending $500 millio= n=20 more to buy power for two struggling utilities as Republicans escalated the= ir=20 criticism of the Democrat's handling of the energy crisis.=20 Davis' request, expected to win approval from the Legislature's majority=20 Democrats, would bring the state's power purchases on behalf of credit-poor= =20 Southern California Edison and Pacific Gas and Electric to $4.7 billion sin= ce=20 the buying started in early January.=20 Both utilities said they are starting to pay the state back for the previou= s=20 power purchases, complying with an order Tuesday by the state Public=20 Utilities Commission.=20 Edison paid the state $43 million and PG&E paid $65.2 million for power=20 purchased by the state in January and February.=20 Republicans stepped up their criticism of Davis and his fellow Democrats=20 during an Assembly session Thursday morning.=20 It was the first legislative session since Assembly Republicans chose a new= =20 minority leader this week, Assemblyman Dave Cox of Fair Oaks, who pledged t= o=20 take a harder line on energy negotiations.=20 Assemblyman Jay La Suer, R-La Mesa, ridiculed Davis' offer of 20 percent ra= te=20 cuts for consumers who cut their electricity use 20 percent from last summe= r.=20 "My people can't save 20 percent. They've already cut to the bone," La Suer= =20 said.=20 He and others blamed Davis for record rate increases of up to 46 percent th= e=20 PUC ordered this week for Edison and PG&E customers.=20 Republicans noted that the PUC is dominated by Davis appointees. Davis has= =20 denied any influence and criticized the rate hike as premature.=20 Eleven Assembly Republicans filed a lawsuit in San Diego Superior Court=20 asking the court to order Davis to provide more details on the state's powe= r=20 purchases, saying they need the information for state budget decisions.=20 "Governor Davis has an information gray-out," said Assemblyman Tony=20 Strickland, R-Thousand Oaks, who led the lawsuit.=20 The lawsuit, similar to one filed last week by The Associated Press and=20 several newspapers, seeks details on long-term power contracts the state ha= s=20 signed and the short-term purchases it is making for Edison and PG&E=20 customers.=20 Davis spokesman Steve Maviglio accused Republicans of engaging in political= =20 "bomb-throwing and obstructionism," saying the information they want to mak= e=20 public would help power suppliers get higher prices from the state.=20 He joined Assembly Democrats in accusing the Republican Bush administration= =20 and Federal Energy Regulatory Commission of not doing enough to rein in=20 soaring wholesale electricity costs.=20 "When are we going to realize that we've gotten FERCed?" quipped=20 Assemblywoman Helen Thomson, D-Davis.=20 She said Californians are hearing "a giant sucking sound" as their electric= =20 payments flow to out-of-state electricity generators.=20 Maviglio said the crisis is the product of the 1996 deregulation law signed= =20 by then-Republican Gov. Pete Wilson.=20 "To think Governor Davis can clean up this mess in a matter of months is ju= st=20 ludicrous," Maviglio said.=20 Cox invited Davis to attend a GOP caucus to discuss energy. Davis spent two= =20 hours briefing Democrats on Wednesday.=20 Also Thursday, the Assembly resumed hearings in its investigation into=20 California's highest-in-the-nation natural gas prices.=20 Southern California Gas Co. Vice President Rick Morrow vehemently denied=20 allegations in a Los Angeles lawsuit that his company conspired with El Pas= o=20 Gas Co. at a 1996 hotel meeting to drive up California natural gas prices.= =20 "That allegation is absolutely absurd," Morrow told two Assembly=20 subcommittees investigating the gas price-spike.=20 The companies are defendants in a lawsuit filed last week by the city of Lo= s=20 Angeles.=20 Chris Garner, director of Long Beach Energy, said the spike has cost his=20 customers between $25 million and $30 million. Long Beach gas prices are ti= ed=20 to the cost of gas at the California border, which peaked this winter with= =20 costs up to six times as high as in neighboring states.=20 California has struggled with soaring natural gas prices, rising electricit= y=20 costs and a tight power supply for months.=20 The state was under a Stage 1 power alert Thursday, with reserves approachi= ng=20 7 percent. -- Associated Press ---------------------------------------------------------------------------= --- ------ Guess again: Rate hike impact underestimated By Carrie Peyton Bee Staff Writer (Published March 30, 2001)=20 Whoops.=20 More Californians than anyone first guessed will probably see their electri= c=20 bills go up within weeks.=20 They will be feeling the brunt of price increases that utility regulators= =20 said Thursday will soon give California the highest electric rates in the= =20 continental United States.=20 Pacific Gas and Electric Co. and the Sacramento Municipal Utility District= =20 have revised their projections about how many customers will probably be=20 paying higher prices for electricity in May.=20 For PG&E, hundreds of thousands more households could be affected, and for= =20 SMUD, a proposed surcharge could hit every one of its 525,000 ratepayers.= =20 PG&E, which in January told lawmakers that pending legislation would protec= t=20 42 percent of its residential customers from rate hikes, now says that 69= =20 percent will face an increase.=20 The shifting numbers are "amazing," said Paul Clanon, energy division=20 director at the state Public Utilities Commission. "We're still trying to g= et=20 to the bottom of it."=20 The PUC said PG&E and Southern California Edison had told it that more than= =20 40 percent of their residential customers would feel no impact from rate=20 hikes if the PUC followed a state law passed in February. That law required= =20 rates to stay level for thrifty households -- those that use less than 130= =20 percent of baseline amounts.=20 "Those were estimates. Now we've had more time to refine the estimates," PG= &E=20 spokesman John Nelson said Thursday.=20 While only 31 percent of PG&E's 4.6 million customers use less than 130=20 percent of the baseline amounts, another 13 percent use a little more. They= =20 would escape higher rates if they conserve by 5 percent, he said.=20 Edison said Thursday it still believes about 45 percent of its residential= =20 customers will feel no rate hikes.=20 "We don't have any reason to believe there is a problem with our numbers,"= =20 company spokeswoman Clara Potes-Fellow said.=20 Wall Street and power sellers have consistently hammered California for=20 charging too little. But the rate hikes approved this week by the PUC will= =20 drive average power costs statewide to about 12 cents per kilowatt-hour, th= e=20 California Energy Commission estimated Thursday.=20 With that, California will surpass New York, at 11.2 cents and holding, and= =20 New Hampshire, which is at 11.6 cents but about to drop, according to utili= ty=20 regulators in those states. Except for Hawaii, at 13.9 cents, no other stat= e=20 comes close to California's new rate, according to October statistics=20 complied by the federal Energy Information Administration.=20 "If there was any doubt in any state's mind that the California deregulatio= n=20 experiment was an ugly one, this should remove that," said Michael Shames,= =20 head of the Utility Consumers Action Network.=20 California rates had been among the 10 highest in America when big business= es=20 began calling for deregulation, saying it would force prices down, he said.= =20 The high wholesale power costs that are driving PG&E and Edison rates up al= so=20 continue to eat away at SMUD.=20 The ratepayer-owned utility district has concluded that rainfall this year= =20 was so light that every SMUD customer should have to pay a special surcharg= e,=20 which it estimates will add $2 a month to a typical household electric bill= .=20 That will come on top of a $5 monthly "customer charge" to be added to ever= y=20 standard household bill. Low-income households will see a $3 customer charg= e.=20 SMUD directors won't vote on a proposed hike until next month, but when the= =20 plan was first unveiled, the utility estimated about 70 percent of househol= ds=20 use so little power that they would face no increase. Later, it said only= =20 half the households would see no hike.=20 And now, SMUD officials are proposing that every customer pay roughly an=20 extra 3 percent for the next year -- one-quarter cent for every kilowatt-ho= ur=20 they use -- because power production will dwindle at its hydroelectric plan= ts=20 on the upper American River.=20 That decision came "about when I was able to go out and play tennis for the= =20 third weekend in a row in March," said Jim Tracy, SMUD planning director,= =20 referring to the unusually dry month. The surcharge will raise about $24=20 million and should expire in 12 months, he said.=20 Altogether, SMUD is now forecasting that an average household bill of $67= =20 would increase to $78 beginning in May.=20 If the current rate proposals are approved by directors at their April 19= =20 meeting, even those with small SMUD bills who do everything they can to=20 conserve would pay at least an extra $3 to $5 per month, and probably more.= =20 "I'm comfortable with that," said SMUD board President Larry Carr. "There i= s=20 a cost associated with serving each customer, (even) if they never turn on= =20 their electricity."=20 ---------------------------------------------------------------------------= --- ------ Bush says energy is paramount concern Bee Staff and News Services (Published March 30, 2001)=20 WASHINGTON -- Declaring that "we are now in an energy crisis," President Bu= sh=20 on Thursday defended his decision to roll back environmental measures=20 proposed by the Clinton administration and to reject a treaty designed to= =20 inhibit global warming.=20 "I'm worried about the economy; I'm worried about the lack of an energy=20 policy; I'm worried about rolling blackouts in California," he said. "It's = in=20 our national interests that we develop a strong energy policy with realisti= c,=20 common-sense environmental policy."=20 The administration's rebuff of the international agreement on climate chang= e,=20 a centerpiece of the Clinton administration's environmental agenda, brought= =20 sharp criticism from European countries, environmentalists and church group= s.=20 Negotiated in Kyoto, Japan, in 1997, the agreement has not been ratified by= =20 the Senate. International efforts last November to work out issues=20 surrounding the treaty failed because of a rift between the United States a= nd=20 Europe.=20 On another environmental matter, the president conceded for the first time= =20 that he may not be able to persuade Congress to open the Arctic National=20 Wildlife Refuge to oil and gas development.=20 "I think it's important for us to open up ANWR. Whether or not the Congress= =20 sees it that way is another matter," Bush said.=20 "I think it would be a mistake not to," he added. "We've got a shortage of= =20 energy in America. It doesn't matter to me where the gas comes from in the= =20 long run, so long as we get gas moving into the country."=20 He also said he expects to tighten the arsenic standard for drinking water,= =20 but won't do so until further scientific studies are completed. Bush recent= ly=20 withdrew new arsenic regulations issued by the Clinton administration.=20 Bush said he remains open-minded and willing to consult with other nations = on=20 how to address climate change, but he made clear that the mandatory=20 greenhouse-gas reductions stipulated in the Kyoto accord were off the table= .=20 "We will not do anything that harms our economy," declared Bush, again citi= ng=20 concerns about soaring natural gas prices and power shortages in the West.= =20 "We'll be working with our allies to reduce greenhouse gases. But I will no= t=20 accept a plan that will harm our economy and hurt American workers," said= =20 Bush.=20 Later, he expressed a similar view in a meeting with German Chancellor=20 Gerhard Schroeder, who told reporters afterward that he continues to hope t= he=20 United States would participate in climate negotiations scheduled this summ= er=20 in Bonn, Germany.=20 "We agreed on practically everything, except ... the Kyoto protocol,"=20 Schroeder told reporters during a joint press conference with Bush,=20 acknowledging the issue had put some strain on U.S.-German relations.=20 Response has been more heated in other foreign capitals.=20 "This isn't some marginal environmental issue to be ignored or played down,= "=20 said Margot Wallstroem, the European Union's environmental minister, at a= =20 news conference in Brussels, Belgium.=20 She left open the possibility of retaliation against the United States.=20 British Environmental Minister Michael Meacher called Bush's views=20 "exceptionally serious," while Sweden's environmental minister, Kjell=20 Larsson, said Bush's plan "sabotages many years of hard work" on one of the= =20 world's most pressing environmental concerns.=20 Criticism also came Thursday from a broad coalition of U.S. religious group= s.=20 Alarmed by Bush's decision to abandon the Kyoto treaty, they urged the=20 president to reconsider his approach or risk alienating a growing faith-bas= ed=20 movement committed to protecting the environment.=20 Leaders of the inter-denominational groups challenged Bush's decision on=20 religious and moral grounds as well as on scientific evidence that Earth's= =20 temperature is rising and could trigger catastrophic climate and weather=20 changes.=20 "If credible evidence exists to indicate our present course could threaten= =20 the quality of life for God's creation and God's children, this becomes an= =20 issue of paramount moral concern," the leaders said in a letter to Bush.=20 The letter from seven religious leaders is significant because of the=20 influence faith-based groups are exercising on the Bush administration and = on=20 Republican congressional leaders. Last year, for example, GOP leaders dropp= ed=20 their opposition to a Clinton administration plan to write off loans to 30 = of=20 the world's poorest countries under pressure from Pope John Paul II and an= =20 international network of religious groups.=20 The letter to Bush was signed by leaders of the National Council of Churche= s=20 of Christ in the USA, the Christian Church (Disciples of Christ), the Afric= an=20 Methodist Episcopal Church, the Metropolitan Orthodox Church in America and= =20 the Jewish Theological Seminary. The Jewish Council for Public Affairs wrot= e=20 separately to voice its concerns.=20 The Kyoto agreement calls on industrial countries to cut greenhouse=20 emissions, mainly carbon dioxide from burning fossil fuels, to below 1990= =20 levels by 2012. Critics have argued that would mean dramatic and costly=20 changes in how the United States generates energy.=20 EPA Administrator Christie Whitman, attending a meeting of environmental=20 ministers in Montreal, said Thursday that while the Kyoto accord is "deeply= =20 flawed," the president remains "absolutely committed" to being fully engage= d=20 with the international community on the issue.=20 Muriel Dobbin of The Bee Washington Bureau, the Associated Press and the=20 Washington Post contributed to this report.=20 ---------------------------------------------------------------------------= --- ------ California pulls out the stops to attract power plants=20 By Don Thompson ASSOCIATED PRESS=20 March 29, 2001=20 SACRAMENTO =01) California has jettisoned its normal air and water pollutio= n=20 controls in a desperate dash to build enough power plants to keep the light= s=20 on this summer.=20 With little notice, communities could soon find themselves home to small=20 "peaking plants" =01) typically natural gas-fired jet engines built on conc= rete=20 pads that will roar into use when power supplies run low.=20 Generators that promise to provide power by the end of summer can skip usua= l=20 environmental restrictions and reviews, win permit approval in days instead= =20 of months, and qualify for low-interest state loans and $30 million in=20 bonuses.=20 So many developers are eager to take advantage of the temporary shortcuts= =20 that state regulators are inviting them to workshops around the state=20 featuring refreshments and promises of quick approval.=20 "Believe it or not, government's here to help you," Christine Kinne, the=20 California Environmental Protection Agency's assistant secretary for permit= =20 assistance, told several hundred developers who attended a recent workshop = in=20 Sacramento.=20 Gov. Gray Davis wants to attract enough peaking plants =01) which typically= =20 produce 50 megawatts or less each =01) to gain 1,000 megawatts this summer.= =20 That's enough power for roughly 750,000 homes.=20 Some Californians question whether the benefits of swift plant approval are= =20 worth what they see as potential long-term costs.=20 Carl Zichella of the Sierra Club said regulators should take time to consid= er=20 the impact on water and air quality, the state's growing population, and=20 danger from earthquakes.=20 "These are certainly things we need to think about before we start plopping= =20 power plants across the landscape," said Zichella, the group's regional=20 director. "People are going to suffer if we relax these standards."=20 The American Lung Association of California and others want lawmakers to=20 encourage the use of renewable energy and conservation rather than relax=20 environmental standards to build new power plants.=20 "We can't afford to relax our air quality regulations and our public health= =20 standards," said Paul Knepprath, the Lung Association's vice president for= =20 government relations.=20 California is struggling with a tight power supply caused in part by scarce= =20 hydroelectricity in the Pacific Northwest, high natural gas prices,=20 California plant shutdowns for maintenance, and construction of few plants = in=20 the state over the past decade.=20 The state has had widespread blackouts four times this year, including twic= e=20 last week.=20 Power regulators fear rolling blackouts will become common this summer, whe= n=20 demand rises sharply as Californians crank their air conditioners.=20 To try to get new power plants online, regulators are crunching what once= =20 were yearlong reviews into as little as 21 days for peaker plants and four= =20 months for larger facilities.=20 The environmental portion of the reviews for peaker plants now takes just= =20 seven days, and the normal requirements of the California Environmental=20 Quality Act have been lifted by Davis under an emergency order.=20 Davis originally said only generators that have new plants online by July 3= 1=20 could take advantage of the speedy review. He moved the deadline to Sept. 3= 0=20 because few could meet the earlier one, said Roger Johnson, siting office= =20 manager for the California Energy Commission.=20 Winston Hickox, secretary of the California Environmental Protection Agency= ,=20 said state officials are "biting our fingernails about whether we can make= =20 it," but still hope to have enough electricity this summer.=20 "We're truncating the process. We're being as user-friendly to producers of= =20 new energy as we can, but we are not abandoning our standards," said Hickox= ,=20 whose role has shifted from environmental watchdog to "permitting czar" at= =20 Davis' direction.=20 Under the previous process, the state Energy Commission took a full year an= d=20 held 13 public hearings before granting a license to Riverside County's=20 Blythe Energy power plant. Residents were given at least 10 days' notice of= =20 hearings through newspaper ads.=20 Under the accelerated review, communities can get as little as three days'= =20 notice of public hearings on plant proposals.=20 San Diego news media were told on a Monday that there would be a single=20 public hearing, three days later, on the proposed Larkspur Energy peaking= =20 plant. The commission posted the hearing on its Web site, but otherwise=20 counted on the media to let residents know.=20 The California Air Resources Board says it will overrule local air quality= =20 boards that take too long to grant permits and air pollution waivers.=20 Davis used an executive order to remove restrictions on when peaker plants= =20 can run so the state can call on them as needed, day or night.=20 The plants also will be allowed to exceed pollution standards by buying=20 "emissions credits" =01) $6,000 per ton of pollutants, which buys them a wa= iver=20 for three years. The ARB says the plants could emit a combined 3 to 10 tons= =20 of smog-producing nitrogen oxide each day, triggering complaints from the= =20 Lung Association that children and the elderly will suffer.=20 Davis also ordered the state Water Resources Control Board to remove limits= =20 on heated power plant discharge water that would prevent the plants from=20 operating.=20 The state will buy the natural gas to fire up peaking plants, and guarantee= =20 owners a "reasonable profit" on their plants' operation, said Viju Patel,= =20 executive manager of the Department of Water Resources. The state will save= =20 money with long-term gas contracts, he said, while saving operators the ris= k=20 of fluctuating gas prices.=20 The peaking plants likely to be approved most swiftly are ones without=20 apparent social or environmental problems, the Energy Commission's Johnson= =20 said.=20 "It can't go in next to a school or hospital," Johnson said.=20 The best sites are polluted commercial land with a gasline and a transmissi= on=20 station next door, he said.=20 The Sierra Club's Zichella predicts many of the plants will be built in poo= r=20 industrial communities.=20 "These peaking plants aren't going to be built on Nob Hill," he said. "Thes= e=20 communities need to have a say in what's going to affect their air=20 pollution."=20 Seyed Sadredin, permit director for the San Joaquin Valley Air Pollution=20 Control District, said the gas turbines are 200 to 300 percent cleaner than= =20 similar-sized diesel generators.=20 Engineers have found ways to cut the noise and vibration below that of a je= t=20 engine mounted on an airplane, though "it's not something you can put in yo= ur=20 backyard and sleep at night," he said.=20 ---------------------------------------------------------------------------= --- ----- Raft of Bills Aimed at Energy Conservation=20 Power: Lawmakers propose everything from loans for schools to free insulati= on=20 in bid to reduce consumption this summer.=20 By JENIFER WARREN and CARL INGRAM, Times Staff Writers=20 ?????SACRAMENTO--In their quest to cut energy use so Californians can keep= =20 their ovens and air-conditioners humming this summer, state officials have= =20 turned to a time-tested strategy: the good ol' carrot and stick. ?????The Public Utilities Commission took care of the stick earlier this=20 week, approving a record increase in electricity rates. Now the Legislature= =20 is working feverishly on the carrot. ?????More than 190 bills springing from the power crisis are buzzing around= =20 the Capitol, and a good number aim to coax or bribe us onto a low-watt diet= .=20 If we resist, state forecasters warn, summer blackouts are inevitable. ?????To ease the pain, lawmakers are proposing loans, tax credits,=20 refrigerator rebates, free insulation for low-income homeowners--even $40= =20 million for a "mobile efficiency brigade" to deliver power-saving lightbulb= s=20 to poor people and businesses. ?????Some measures had been stalled as legislators focused on the financial= =20 crisis afflicting the state's debt-ridden private utilities, which say they= =20 are on the verge of bankruptcy. But the rate increase stabilized the=20 financial outlook a bit, and now the focus is back on Sacramento. ?????Displaying newfound pep, lawmakers are shaping and blending bills in= =20 hopes that the governor can sign them by the end of next week--which also= =20 marks the start of the Legislature's spring break. ?????Energy specialists say there is not a moment to spare. Last week--a ti= me=20 when temperatures were mild and energy demand was half that of summer--the= =20 state suffered back-to-back blackouts. Hot weather is fast approaching, and= =20 some conservation measures take time to put in place and sell to consumers. ?????One estimate by the California Energy Commission says that for every d= ay=20 the Legislature delays passage of the biggest conservation bill--the sweepi= ng=20 SB 5X--the state misses the chance to save 20 megawatts of energy, enough t= o=20 power about 15,000 homes. ?????"It's extremely urgent," said the bill's author, state Sen. Byron Sher= =20 (D-Stanford). "All the experts agree that reducing demand through=20 conservation is the least expensive, most effective way we can get control= =20 quickly over the energy market." ?????While the conservation measures are the priority, dozens of other bill= s=20 addressing some dimension of the energy mess are piling up. ?????One assemblyman wants to make looting during blackouts a crime, and=20 require that law enforcement officials get a warning before blackouts are= =20 ordered. Another bill would expedite the approval process for new power=20 plants. ?????Assembly Speaker Bob Hertzberg (D-Sherman Oaks) wants to ensure that= =20 operators of new California power plants are forced to offer their=20 electricity for sale within the state before marketing it elsewhere. ?????"This is about giving California the right of first refusal," Hertzber= g=20 said before his Assembly colleagues approved the bill, AB 60X, and sent it = to=20 the Senate. Without such a requirement, Hertzberg said, California would=20 suffer air pollution and other costs of hosting plants but reap no benefit. ?????That theme--giving California more control over the power supply--also= =20 runs through a measure sponsored by Senate leader John Burton (D-San=20 Francisco). His bill, SB 6X, would put the state in the business of buildin= g,=20 financing, acquiring and owning its own power plants. ?????Burton says the bill would enable California to control its own "energ= y=20 destiny," as other states do, including New York. But Republicans warn that= =20 it would create a vast new bureaucracy and say that making and selling powe= r=20 is best done by private industry. ?????Burton's bill has passed the Senate and awaits action in the Assembly.= =20 But next week's priority, legislators say, will be passing two gargantuan= =20 conservation bills considered vital to helping California survive summer=20 without widespread power outages. ?????Analysts say the bills--Sher's and a measure by Assemblywoman Christin= e=20 Kehoe (D-San Diego)--would allocate about $1 billion to programs that could= =20 reduce summer demand by as much as 4,000 megawatts--the equivalent of what= =20 eight average-size power plants produce. ?????Forecasts of a summer power shortfall range from 2,500 to 5,000=20 megawatts, said Ralph Cavanagh, an energy expert for the Natural Resources= =20 Defense Council: "So these bills could really be decisive." ?????And although $1 billion may seem like a sizable investment for applian= ce=20 rebates, home weatherization, free lightbulbs and other conservation=20 measures, it's peanuts compared to the exorbitant price--close to $4 billio= n=20 in the last three months--the state is paying to buy energy on the spot=20 market, Cavanagh said. ?????Experts say the conservation proposals--many of which Gov. Gray Davis= =20 made in February--have a good chance of success because they build on=20 existing programs with track records. While there are "probably lots of=20 great, innovative new ideas out there, we stuck with proven programs becaus= e=20 we need certainty for this summer," said Claudia Chandler, assistant=20 executive director of the California Energy Commission, headquarters for ma= ny=20 of the conservation efforts. ?????Cavanagh said the two bills, if signed by Davis, would roughly double= =20 what California has been spending on conservation. A spokesman for Davis sa= id=20 the governor would support the $500-million worth of programs he proposed i= n=20 February, but could not predict the fate of the other $500-million worth of= =20 proposals likely to arrive on his desk. ?????"As the governor has said, conservation is our ace in the hole and a= =20 powerful tool to help us avoid blackouts," said the spokesman, Roger Salaza= r.=20 "We think the half-billion dollars in proposals the governor has put forth= =20 are prudent and will help us get through summer." ?????Among the proposals in pending legislation are: ?????* $280 million to help low-income families with everything from paying= =20 their energy bills to installing insulation, double-paned windows and=20 efficient air-conditioners.=20 ?????* $170 million to help businesses install power-saving lighting and=20 air-conditioning systems. ?????* $15 million for energy-efficient traffic signals. ?????* $7 million for a school-based campaign, tentatively called "Kids=20 Count," to teach children about energy conservation. ?????* $25 million in loans to schools to help them cut energy consumption. ?????* $10 million to the state Department of Consumer Affairs for a public= =20 outreach campaign about the need for conservation. ?????* $132 million in loans and rebates for residents and business owners= =20 who buy new appliances and air-conditioners or upgrade old systems. ---=20 ?????Times staff writer Miguel Bustillo contributed to this story. ---------------------------------------------------------------------------= --- ------ 2 Firms Start Repaying State for Power Buys=20 Electricity: Edison and PG&E give $105 million for energy supplied between= =20 Jan. 19 and Feb. 11. Also, a state agency predicts a 7% shortfall this=20 summer.=20 By MIGUEL BUSTILLO and JULIE TAMAKI, Times Staff Writers=20 ?????SACRAMENTO--For the first time since California began buying electrici= ty=20 in mid-January on behalf of the state's two biggest utilities, money is=20 coming back to the state. ?????Under order by state regulators, Southern California Edison and Pacifi= c=20 Gas & Electric began making payments this week to reimburse the state for t= he=20 billions it has spent on power. Edison paid $43.5 million and PG&E paid $61= .8=20 million for electricity supplied between Jan. 19 and Feb. 11, with more mon= ey=20 on the way, officials said Thursday. ?????California taxpayers became the biggest buyers of power in the West=20 after electricity suppliers began refusing to sell to the utilities, which= =20 had depleted their cash reserves and tarnished their credit ratings when th= e=20 cost of electricity soared above their selling price last year. ?????Since then, the state has spent or appropriated $3.8 billion on behalf= =20 of the utilities, which together serve 24 million people. The repayments=20 began Wednesday, the day after the state Public Utilities Commission approv= ed=20 consumer rate hikes of as much as 46%. ?????While the PUC action was intended to put the brakes on a runaway energ= y=20 crisis, there were new signs of disarray Thursday. ?????A group of Republican lawmakers sued Gov. Gray Davis for keeping secre= t=20 the details of long-term power contracts signed by the state. ?????One of the largest alternative power producers in the West went to cou= rt=20 to suspend its contract with Edison. ?????And operators of the state's electricity grid predicted that in June,= =20 California could fall 7% short of the power it needs to avoid blackouts. ?????"California is facing an electricity shortage of unprecedented=20 proportions," wrote the staff of the California Independent System Operator= =20 in an assessment of summer power supplies. ?????The court action against Edison came from Carson-based Watson=20 Cogeneration Co., one of nearly 700 firms contracted to supply electricity = to=20 the state's private utilities. Watson filed a complaint in Los Angeles Coun= ty=20 Superior Court seeking to suspend its contract. ?????Watson has not been paid by Edison since November and is at least the= =20 third company seeking court release from its utility contract. One such fir= m,=20 geothermal producer CalEnergy, was granted the right to sell its power on t= he=20 open market. ?????Watson's complaint comes on the heels of an order by the PUC earlier= =20 this week that Edison and PG&E begin fully paying small alternative energy= =20 producers, which together supply more than a quarter of the electricity use= d=20 by California consumers. Shutdowns by some of these small producers=20 contributed to the state's blackouts last week. ?????Tom Lu, Watson's executive director, said the PUC order failed to=20 provide the assurances his company needs that it will get paid. Many small= =20 producers have complained that the order slashes the rates that utilities= =20 must pay the producers to a level that makes it impossible for them to turn= a=20 profit. ?????"What we're looking for is the capability to be able to sell to a thir= d=20 party so that we can get paid for our power deliveries," Lu said. ?????Edison sent a letter to the small producers Thursday, promising to beg= in=20 paying them by April 16 for power supplied in April. The utility added that= =20 it expects all the alternative generators that shut down their operations t= o=20 resume deliveries by Sunday.=20 ?????The lawsuit filed by the GOP legislators demanding that Davis open the= =20 books on the state's long-term energy contracts came on the heels of a=20 similar suit filed last week by a coalition of news organizations, includin= g=20 The Times. ?????Led by Assemblyman Tony Strickland (R-Moorpark), the suit argues that= =20 under the California Public Records Act, the details of the power buys shou= ld=20 be made public. ?????Republican lawmakers, who plan to raise money to finance their suit,= =20 said Davis' withholding of the information prevented them from voting=20 responsibly on the state budget and other important financial matters.=20 California is spending between $45 million and $55 million a day on=20 electricity on the expensive wholesale spot market. ?????"The governor is asking the people in this building to drive down a da= rk=20 tunnel with the lights off," Assemblyman John Campbell (R-Irvine) said in a= =20 news conference outside the Capitol. ?????Davis administration officials contend that release of the information= =20 now would jeopardize their efforts to enter into inexpensive, long-term=20 contracts to purchase electricity because bidders would know what their=20 counterparts were offering, and would not offer a lower price. They say the= y=20 will release the information at a future date. ?????The administration position received a boost this week when Atty. Gen.= =20 Bill Lockyer issued a legal opinion saying that maintaining the integrity o= f=20 power-buying negotiations outweighed public disclosure. ?????In other developments Thursday: ?????* U.S. Energy Secretary Spencer Abraham met in Washington, D.C., with= =20 power suppliers to discuss ways to help California avert blackouts this=20 summer. ?????Abraham asked the energy companies to prepare a list of potential=20 problems, including maintenance schedules for generating units, that could= =20 reduce electricity supplies this summer, an administration official said. ?????* A state energy panel recommended the speedy restart of two gas-fired= =20 generators owned by AES Corp. in Huntington Beach, on several conditions.= =20 Power would have to be sold in California, and the company would have to pa= y=20 $1 million for an independent study into whether its plant is causing ocean= =20 and beach pollution. ?????The generators could be online by July, according to California Energy= =20 Commission staff, but area residents would have to endure construction nois= e=20 20 hours a day. The Energy Commission must still vote on the recommendation= s. ?????* An executive with Southern California Gas Co. adamantly denied=20 explosive allegations, contained in a series of lawsuits, that it conspired= =20 with a Texas energy firm to limit natural gas deliveries to California. ?????Testifying before an Assembly oversight committee in Sacramento, Rick= =20 Morrow, a vice president with the gas company, said "there was absolutely n= o=20 mystery" to a meeting at which several of Morrow's employees and=20 representatives of El Paso Natural Gas Co. are alleged to have struck an=20 anti-competitive deal. ?????The two companies are alleged to have violated the state's anti-trust= =20 law, and caused prices to spike, by agreeing not to compete with one anothe= r=20 on pipeline projects that would have brought additional natural gas supplie= s=20 into California. ?????Most power plants in California consume natural gas, and the cost of t= he=20 fuel accounts for as much as 60% of the cost of electricity. ?????* In an analysis of summer power supplies, state grid operators foreca= st=20 that imports to California from the Pacific Northwest will be halved becaus= e=20 severe drought has stressed the region's ability to supply even its own nee= ds=20 from hydroelectric reservoirs. ?????The report, to be reviewed by the Cal-ISO board of governors today,=20 warns that the state's most severe shortfall of power could occur in June,= =20 before several new power plants are expected to begin operation in July and= =20 August. ---=20 ?????Times staff writers Richard Simon, Nancy Vogel and Christine Hanley=20 contributed to this story. ---------------------------------------------------------------------------= --- ------ Ads Support Davis Actions, Legislature in Power Crisis=20 By DAN MORAIN, Times Staff Writer=20 ?????SACRAMENTO--Backers of Gov. Gray Davis are airing radio ads saying the= =20 governor and Legislature are working hard to solve California's energy=20 crisis, in what could be the beginnings of a campaign against an initiative= =20 that doesn't yet exist. ?????The ads, airing in Los Angeles and elsewhere, also offer a boost to=20 Davis, at a time when private polls suggest voter skepticism that he is=20 solving the energy crisis. ?????Backers of the ad campaign, funded with a relatively modest $100,000,= =20 say the spots were not intended to help the governor. ?????"The story here is that this group would like to see partisan politics= =20 stay out of it," said campaign consultant Rick Claussen of Goddard-Claussen= ,=20 who specializes in initiative campaigns and produced the spots. "We need to= =20 keep people focused on the solutions." ?????Claussen said the group, called Energy for California, could become a= =20 political organization that would counter initiatives aimed at undoing=20 whatever solution Davis and lawmakers come up with. ?????At least one and possibly more initiatives related to the energy crisi= s=20 will probably be on statewide ballots in 2002. Consumer activist Harvey=20 Rosenfield of Santa Monica, who has promoted several initiatives, says he i= s=20 considering entering the fray. ?????"I'm flattered," Rosenfield said. "This has to be a first: an ad=20 campaign against an initiative that hasn't been drafted." ?????The sponsoring group includes Silicon Valley venture capitalist John= =20 Doerr and entrepreneur Reed Hastings, both of whom have donated $25,000 to= =20 Davis' 2002 reelection effort and were major backers of an initiative that= =20 the governor promoted last year to ease approval of local school constructi= on=20 bonds. ?????Chris Townsend, who hosted a fund-raiser for Davis in Orange County=20 earlier this year, also is involved, as is Silicon Valley Manufacturing Gro= up=20 director Carl Guardino, a Davis appointee to the California Independent=20 System Operator, which oversees the state's power system. ?????The group also includes William Hauck of the California Business=20 Roundtable and Daniel Case of the San Francisco investment bank Hambrecht a= nd=20 Quist. ?????The ads open with voices saying there is no crisis, then switch to an= =20 announcer who says the crisis is real and that "California faces even more= =20 energy shortages and blackouts this summer if we don't all do our part." ?????"Working together, we can have adequate supplies and a secure energy= =20 future. That's what Gov. Gray Davis, the Legislature, business and communit= y=20 leaders are working to do." ?????The ad refers to steps being taken in Sacramento, including "historic= =20 statewide conservation programs like the governor's 20/20 program." Althoug= h=20 it is not final, that proposal promises to give people 20% rebates on the= =20 remainder of their electricity bills if they cut use by 20% between June an= d=20 September. ?????"They're not political ads," said Garry South, Davis' chief political= =20 advisor, who was involved in the planning. "They don't say, 'Vote for Gray= =20 Davis.' They're about the energy crisis." ?????The ads are designed to "reassure people and calm people down," said= =20 Darry Sragow, a political consultant who works for the state Assembly's=20 majority Democrats. ?????"It is a critical and dicey time for [Davis] politically," Sragow said= .=20 "It's not something from which he cannot recover. But he shouldn't be feeli= ng=20 comfortable." ---------------------------------------------------------------------------= --- ----------------------------------------------------------------- Friday, March 30, 2001=20 Take-Charge Governor Forfeits on Energy=20 By DAN SCHNUR ?????Where was Gray Davis when the lights went out?=20 ?????Where was the governor when the rates went up, when the bonds to pay f= or=20 electricity came up short, when the latest round of blackouts swept across= =20 California?=20 ?????He was doing what he does best. He was raising money for his reelectio= n=20 campaign.=20 ?????While Davis' hand-picked chairperson of the Public Utilities Commissio= n,=20 former campaign aide Loretta Lynch, was preparing to announce rate increase= s=20 of up to 40% for some of California's energy consumers, the governor himsel= f=20 was busy hitting up lobbyists for campaign contributions at a Palm Springs= =20 golf tournament. In Gray's world, when the going gets tough, the tough go= =20 country-clubbing.=20 ?????When it became known that Lynch was considering approving a rate=20 increase, Davis immediately tried to distance himself from her. Only a year= =20 ago, Davis had appointed Lynch, a San Francisco trial lawyer and longtime= =20 Democratic campaign staffer, as the state's top energy official. Throughout= =20 the crisis, his aides had been meeting with her on a regular basis, while= =20 portraying Davis himself as being the key player to all energy related=20 deliberations. But when Lynch stepped up to take the heat, the governor was= =20 strangely passive and distant.=20 ?????"I can't order or direct an independent body," he told reporters. "I'v= e=20 not given any advice to them on the subject of a rate increase."=20 ?????For the last several months, Davis had made it clear that a rate boost= =20 was unacceptable. When the utilities requested an increase last fall, he=20 publicly argued against it. In recent weeks, when state legislators and eve= n=20 his own advisors began to come to terms with the need for a rate hike, Davi= s=20 said no. But as the crisis worsened, and the options narrowed, he grew=20 silent. Suddenly Lynch, who is destined to go down in California political= =20 history as the Rose Bird of electricity, was in command. And Davis was a me= re=20 spectator.=20 ?????Where was the governor who announced in the first days of his=20 administration that his appointees would not speak publicly or announce=20 policy without his permission? Where was the governor who stated that it wa= s=20 the job of the independently elected state Legislature to implement his=20 vision? The governor who claimed it was the responsibility of California's= =20 judges to reflect the views he expressed in his own election? The governor= =20 who has done everything but rip the tongues out of the mouths of advisors w= ho=20 have strayed even slightly from the company line?=20 ?????It's difficult for longtime Davis watchers to reconcile such autocrati= c=20 tendencies with this new image of the governor tied to the political railro= ad=20 tracks while the evil commissioners ignore his pleas for mercy. Yet when th= e=20 full PUC prepared to vote on Lynch's proposal, Davis did not even attend th= e=20 meeting. He did not, at least publicly, urge the commissioners to reject th= e=20 rate hike. He certainly did not take to the airwaves calling for California= ns=20 to join him in opposition. He has therefore forfeited his right to rail=20 against the fates when his own appointees go ahead and pass a rate increase= .=20 ?????As Davis prepares to seek reelection, he already has about $28 million= =20 in the bank, and he has strong Democratic majorities in the state=20 Legislature. But he also has a state full of voters who have just been told= =20 that their power bills are going to increase by thousands of dollars each= =20 year.=20 ?????What's a poor governor to do?=20 ?????When faced with angry voters, a political leader has two choices. He c= an=20 talk to them honestly and directly, explain that difficult choices must be= =20 made and take responsibility for the course of action he has charted. Or he= =20 can blame their problems on someone else and go to the golf course with his= =20 contributors.=20 ?????Voters will forgive honest policy differences, especially if their=20 leaders have the courage to confront them with difficult truths. They are= =20 much less likely to forgive politicians who can't, or won't, lead.=20 ?????If Davis continues to play the part of victim, Californians will look= =20 elsewhere for a genuine leader in 2002.=20 - - - Dan Schnur, Director of Communications During Gov. Pete Wilson's First Term= ,=20 Is a Visiting Instructor at the Institute of Government Studies at Uc Berke= ley ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= - Blackout Warnings For Police=20 PG&E giving notice to ease traffic jams=20 Bernadette Tansey, Chronicle Staff Writer Friday, March 30, 2001=20 ,2001 San Francisco Chronicle=20 URL:=20 http://www.sfgate.com/cgi-bin/article.cgi?file=3D/chronicle/archive/2001/03= /30/M N188438.DTL=20 San Francisco authorities who have been caught flat-footed by rolling=20 blackouts will get detailed information in advance from PG&E on which block= s=20 will lose their lights during any future outages.=20 Responding to San Francisco's plea for better notice to avoid dangerous=20 traffic jams, Public Utilities Commissioner Carl Wood has ordered Pacific G= as=20 and Electric Co. to share a map of its circuitry with the mayor's Office of= =20 Emergency Services.=20 The information will help police officers find out more quickly which=20 intersections will go dark. Traffic signal outages create backups and=20 potential dangers to pedestrians and motorists, said Lucien Canton, directo= r=20 of emergency services.=20 Police now get only sketchy information from PG&E about the blocks where=20 power might go out, Canton said.=20 "It's vague almost to the point of being useless," Canton said. "When the= =20 lights go out, we have to go looking for the intersections ourselves."=20 In an order made public yesterday, Wood told PG&E to give as much advance= =20 warning as possible when outages are imminent. Wood also directed Southern= =20 California Edison to meet with Huntington Beach officials to work out a pla= n=20 to address that city's request for such information.=20 But Wood said he was not inclined to issue a global order for the utilities= =20 to provide detailed information on their circuits with all cities in their= =20 coverage areas.=20 A broader notification plan may still be in the works, however. The=20 Independent System Operator, which runs the state's grid, will consider a= =20 proposal today for an "e-notification" system to help customers and=20 businesses prepare before the lights go out.=20 Under the plan by Carl Guardino, a member of the ISO's governing board and= =20 president of the Silicon Valley Manufacturing Group, utility customers and= =20 public agencies that wanted the warnings could submit their e-mail addresse= s=20 to the ISO. The ISO would advise them whenever a blackout was possible that= =20 day and identify the outage blocks that would be affected.=20 PG&E has been reluctant to publicize the exact borders of rolling outage=20 blocks, saying it was concerned that criminals would head to an area where= =20 they knew the power was going to go out.=20 To limit the number of people who learn about the outages, Wood told PG&E t= o=20 submit the block information to the PUC. The commission will then transmit = it=20 to the San Francisco emergency services division, with strict limits on its= =20 distribution.=20 The utility must also tell city officials which essential customers, such a= s=20 hospitals, are exempt from rolling blackouts and which are not. Canton said= =20 that list will help the city handle emergencies at nonexempt sites and to= =20 push exemptions for services that now could lose power.=20 PG&E spokesman John Nelson said the utility will comply with any order the= =20 commission issues.=20 But he said PG&E does not have circuit maps down to the level of specific= =20 intersections.=20 "Those maps could be developed," Nelson said. "It would certainly be very= =20 labor intensive."=20 The outage blocks are also constantly changing, he said, and are modified t= o=20 take into account different usage patterns between summer and winter.=20 Providing detailed circuit maps to all California cities would be "a most= =20 involved undertaking," Nelson said.=20 PG&E serves 49 of California's 58 counties, including hundreds of cities.= =20 Nelson said PG&E alerts cities to the possibility of outages as soon as=20 possible, but often gets little advance warning itself from the ISO.=20 The utility has also taken flak from cities that were warned of a possible= =20 outage, only to have it averted by last-minute power purchases. Some cities= =20 have threatened to sue PG&E for the extra cost of sending out public safety= =20 officers who proved not to be needed, Nelson said.=20 ,2001 San Francisco Chronicle ? Page?A - 21=20 ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= --- ------------------------------------- Energy Crisis Dogs State Democrats=20 Conventioneers likely to discuss Davis' troubles=20 Carla Marinucci, John Wildermuth, Chronicle Political Writers Friday, March 30, 2001=20 ,2001 San Francisco Chronicle=20 URL:=20 http://www.sfgate.com/cgi-bin/article.cgi?file=3D/chronicle/archive/2001/03= /30/M N74478.DTL=20 It has been this kind of month for Gov. Gray Davis: Seeking to welcome=20 Democratic delegates to the annual state convention this weekend, he=20 announced a "Hollywood pictures"-style shindig at the new Disney California= =20 Adventure theme park. Then, Disney announced 4,000 layoffs.=20 In California, where residents are enduring rolling blackouts and whopping= =20 energy bill increases, Davis and Democrats are hoping for a break -- and=20 better luck -- as they gather in Anaheim, Orange County, to plan for two=20 brutal years of electioneering ahead.=20 The Democrats' goal is to develop strategies that help them contain the=20 energy crisis, showcase national party leaders like House Minority Leader= =20 Dick Gephardt of Missouri and Democratic National Committee Chair Terry=20 McAuliffe and pump up the party faithful for coming campaigns.=20 But the three-day convention that begins today will spotlight Davis, whose= =20 political problems have prompted reporters to reach for such "Jaws"-like=20 descriptions as "sharks circling" and "blood in the water."=20 THE POLITICS OF POWER OUTAGES The convention will give the governor the chance to beat back the growing= =20 perception that he is increasingly vulnerable to power outages and politica= l=20 turmoil: He is scheduled to deliver tomorrow his first major address since= =20 Californians learned their energy bills will be hiked as much as 46 percent= .=20 But Davis, while still high on the list of Democratic 2004 presidential=20 prospects, faces challenges on a variety of fronts. Consumer groups are=20 howling, TV pundits are criticizing, and some of his party faithful have=20 begun backbiting -- albeit still mostly off the record -- about his cautiou= s=20 handling of the energy situation.=20 "This is going to be a difficult several months for Gray Davis," said autho= r=20 Mark Baldassare, a pollster for the San Francisco-based Public Policy=20 Institute of California. Besides energy woes, a worsening economy and dot-c= om=20 collapses have "dramatically" changed the political landscape, "and this ha= s=20 given a lot of people second thoughts about whether there's an opportunity = to=20 make a run against Davis," Baldassare said.=20 Davis' problems, however, are coming at a high point for California=20 Democrats. Unlike state Republicans, who have been battered by internal=20 squabbling and a string of election losses, Democrats hold all but one of= =20 California's statewide offices, control the Legislature and took four=20 congressional seats from Republicans in November.=20 OPTIMISTIC IN ORANGE COUNTY Their confidence is reflected in their choice of convention location. Orang= e=20 County, for decades a Republican Party stronghold, is now home to a growing= ,=20 Democratic-leaning Latino population.=20 "We've made amazing gains in Orange County in recent years," said Bob=20 Mulholland, a party strategist. "Holding the convention in Orange County=20 shows the party's commitment to reaching everyone in the state."=20 Still, there's an uneasiness among Democrats regarding Davis' handling of t= he=20 power crunch. If the 2002 election becomes a referendum on the way=20 politicians have dealt with energy deregulation, plenty of other Democrats= =20 could get burned, and those who voted for the 1996 deregulation plan are=20 especially nervous.=20 Republicans -- emboldened -- have intensified their criticism of the govern= or=20 and, in the case of Secretary of State Bill Jones, declared themselves read= y=20 for a 2002 run against Davis.=20 Democratic faithful note that Davis may have suffered some rocky times in= =20 recent weeks, but they also admire his status as the ultimate political=20 survivor.=20 "I don't think the governor is going to have any primary challenge. A lot o= f=20 people are talking, but I don't think anyone has the courage to face him=20 down," said Democratic political consultant Robert Barnes of San Francisco.= =20 "Gray is smart and calculating and knows politics. . . . He won the last=20 election when everybody said he was roadkill. He is never to be=20 underestimated. "=20 And, he's got what insiders say it takes to beat any comers: an astonishing= =20 $26 million already collected for his next race.=20 UPBEAT REPUBLICANS But Republicans are feeling better than they have in years.=20 "I'm loving every second of (Davis' troubles)," said a high-level GOP=20 operative, who didn't want to be quoted by name. "It gives us a light at th= e=20 end of the tunnel."=20 Suddenly Davis' $26 million campaign fund isn't looking insurmountable, he= =20 said, because "$25.5 million will have to go to explaining the energy=20 crisis."=20 GOP state party Secretary Shannon Reeves, who was invited to the White Hous= e=20 this week to talk with President Bush, said, "The biggest problem for the= =20 Democrats right now is . . . we're the most unified we've been in probably = a=20 decade. And we have a president who has California on the (front burner)."= =20 What Republicans don't have is a slam-dunk candidate for governor. Jones=20 starts with less than $120,000 for his campaign, and actor Arnold=20 Schwarzenegger and wealthy businessman Bill Simon are longshots.=20 "Despite all their carping and gloating, you'll notice that not a single on= e=20 of (the Republicans) has put a viable plan on the table to solve the (energ= y)=20 problem," said Garry South, Davis' senior political strategist. "They can t= ry=20 to make hay, but they have exactly one statewide elected official. . . . If= =20 they're breaking out the champagne, more power to them."=20 Still, pollsters say the energy crisis has affected Davis' standing with=20 voters.=20 The governor's vulnerability stems from his "very public stance" against=20 utility rate increases, said Mark DiCamillo, director of the statewide Fiel= d=20 Poll.=20 "It was one of the reasons he was viewed positively, while everyone else wa= s=20 negatively perceived," he said. "Now that his position doesn't seem to be= =20 holding, (the approval ratings) are bound to wear off."=20 Alfred Balitzer, political science professor at the Claremont McKenna=20 Colleges, said the Democrats may have to worry about themselves, as much as= =20 Davis.=20 "A power crisis involves the average Californian . . . and that will hit ho= me=20 in a special way," he said. "The governor tried to blame it on (former Gov.= )=20 Pete Wilson -- but the fact is, it's his watch."=20 If the Democratics who control the Legislature perceive Davis as increasing= ly=20 unpopular, "they will run for cover . . . (because) he hasn't involved them= =20 like he should have," Balitzer said. "The strains of one-party rule are=20 beginning to show, and the question is: Can the Republicans take advantage = of=20 it?"=20 E-mail Carla Marinucci at cmarinucci@sfchronicle.com and John Wildermuth at= =20 jwildermuth@sfchronicle.com=20 ,2001 San Francisco Chronicle ? Page?A - 2=20 ---------------------------------------------------------------------------= --- ---------------------------------------------------------------------------= --- ----------- Canada seeks to grab bigger role as U.S. energy supplier=20 TOM COHEN, Associated Press Writer Friday, March 30, 2001=20 ,2001 Associated Press=20 URL:=20 http://www.sfgate.com/cgi-bin/article.cgi?file=3D/news/archive/2001/03/30/i= ntern ational0216EST0449.DTL=20 (03-30) 02:16 EST TORONTO (AP) -- As President Bush struggles with the U.S.= =20 energy crisis, Canada said it is ready to increase the amount of oil and=20 natural gas it provides to the United States.=20 In the past, it has been too costly to tap abundant oil reserves in norther= n=20 Alberta and natural gas in the Northwest Territories. But accessing those= =20 supplies is now economically feasible because of new technology and rising= =20 energy prices south of the border.=20 ``Canada has an abundance of energy and we remain the best option as a=20 supplier for the United States,'' said Prime Minister Jean Chretien's=20 spokesman, Duncan Fulton.=20 That offer looks tempting to President Bush, who said Thursday the United= =20 States would look to Canada if Congress prevents drilling for oil and natur= al=20 gas in Alaska's Arctic National Wildlife Refuge.=20 Canada opposes U.S. drilling in Alaska, saying it would endanger a=20 significant porcupine caribou herd that migrates through the reserve. But a= =20 bigger reason could be the desire to export fuel to the ``lower 48.''=20 ``It's important for us to explore and encourage exploration, and work with= =20 the Canadians to get pipelines coming out of the Northwest Territories to t= he=20 United States,'' Bush told reporters Thursday in Washington when asked abou= t=20 expected opposition in Congress to drilling in the Alaska reserve.=20 ``There's gas in our hemisphere,'' he said later. ``And the fundamental=20 question is, where is it going to come from? I'd like it to be American gas= .=20 But if the Congress decides not to have exploration in (Alaska), we'll work= =20 with the Canadians.''=20 Chretien discussed energy issues with Bush during their meeting in Washingt= on=20 on Feb. 5, Fulton said.=20 A National Energy Board report last year that assessed supplies and demand = to=20 2025 put known natural gas reserves in Canada's ``northern frontier'' at 24= =20 trillion cubic feet with estimated reserves at almost 170 trillion cubic=20 feet.=20 The United States now consumes about 21.5 trillion cubic feet of gas per=20 year, with demand expected to grow by about 2 percent annually for the next= =20 20 years.=20 Bush administration officials announced Wednesday that they would not=20 implement the 1997 Kyoto Protocol, under which countries agreed to legally= =20 binding targets for curbing heat-trapping ``greenhouse'' gases, which=20 contribute to global warming.=20 On Thursday, Bush called natural gas a clean energy source that could help= =20 reduce greenhouse gas emissions. The problem, he said, was too little suppl= y=20 and a lack of pipelines to transport it. He said that was why he favored=20 looking in Alaska, despite opposition from environmentalists to drilling in= =20 the wilderness refuge.=20 Two major pipeline projects that would transport natural gas from northern= =20 Alaska and Arctic Canada to Alberta have been discussed for years.=20 The Alaska Highway project would build a pipeline from the North Slope near= =20 Prudhoe Bay to Alberta, following the Alaska Highway part of the way.=20 The Mackenzie Delta project -- which is shorter and wou
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