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Sac Bee, Thurs, 4/5: "Conservation bills hit snag: Provisions added to=20 shield farmers from blackouts irritate Senate leaders and delay passage of an overall package.= " Sac Bee, Thurs, 4/5: "Democrats urge U.S. price controls" San Diego Union, Thurs, 4/5: "California governor prepares to address state= =20 on energy"=20 San Diego Union, Thurs, 4/5: "State gets $4.1 billion infusion" San Diego Union, Thurs, 4/5: "All California hospitals exempted from=20 blackouts" San Diego Union, Thurs, 4/5: "Quick fix proposed for power problems" LA Times, Thurs, 4/5: "Treasurer Urges Disclosure of Power Cost" LA Times, Thurs, 4/5: "House GOP Moves to Draft Plan to Give the West Summ= er=20 Energy Aid" LA Times, Thurs, 4/5: "California's Electricity Woes Power Up Northwest" SF Chron, Thurs, 4/5: "Davis Campaign Losing Steam=20 Energy crisis generates possible challengers for governor in 2002 " SF Chron, Thurs, 4/5: "Crisis Takes Toll On State Economy=20 DAVIS'S SPEECH: Possible tax on generators " SF Chron, Thurs, 4/5: "San Jose Looks Past the Energy Crisis=20 Big server farm OKd in hope the electricity will be there" SF Chron, Thurs, 4/5: "More Unpaid Power Plants Face Closing=20 Owners slam PUC silence about bills " SF Chron, Thurs, 4/5: "California governor plans to address state on energ= y=20 " SF Chron, Thurs, 4/5: "Critics question effectiveness of energy rebates " SF Chron, Thurs, 4/5: "Developments in California's energy crisis " Mercury News, Thurs, 4/5: "Sharp dispute on economic impact in California" Mercury News, Thurs, 4/5: "Gov. Davis prepares to address state on energy" Orange County, Thurs, 4/5: "Too much hot air about too little power" = =20 (Commentary) Orange County, Thurs, 4/5: "More pain predicted in electric crisis" Orange County, Thurs, 4/5: " 'Windfall tax' on power profits? " Orange County, Thurs, 4/5: "PUC chief takes issue with utilities' claims o= n=20 power crisis" Orange County, Thurs, 4/5: "State borrows $4.1 billion for power" Orange County, Thurs, 4/5: "Electricity Notebook: Davis to discuss power= =20 crisis in=20 televised address" Individual.com, Thurs, 4/5: "California Regulators Face Backlash"=20 Individual.com, Thurs, 4/5: "ICF Consulting Study Predicts Turning Point i= n=20 Wholesale Power Markets" =20 Energy Insight, Thurs, 4/5: "Global Energy Use to Increase by 59%" ---------------------------------------------------------------------------= --- ---------------------------------------------------- Conservation bills hit snag: Provisions added to shield farmers from=20 blackouts irritate Senate leaders and delay passage of an overall package. By Kevin Yamamura and John Hill Bee Capitol Bureau (Published April 5, 2001)=20 Conservation bills designed to keep energy flowing this summer were stalled= =20 in the Legislature on Wednesday by a dispute over whether some farmers shou= ld=20 receive special protection from potential summer power blackouts.=20 The proposals make up a complementary, two-house conservation package that= =20 aims to save California about 4,000 megawatts of energy. The two bills -- S= B=20 5x by state Sen. Byron Sher, D-Palo Alto, and AB 29x by Assemblywoman=20 Christine Kehoe, D-San Diego -- together would cost the state $1.2 billion,= =20 though Gov. Gray Davis may reduce that with line-item vetoes should the=20 legislation reach his desk.=20 The dozens of conservation measures include:=20 $20 million in rebates or other incentives to encourage Californians to=20 replace inefficient appliances, with priority given to low- and middle-inco= me=20 residents.=20 An outreach program to teach schoolchildren about saving energy.=20 $14.5 million for efficient traffic signal lights.=20 Lawmakers want to give the bills to Davis before next week's scheduled spri= ng=20 recess begins late Thursday, but the legislation remains mired in a=20 cross-house entanglement over a series of changes that the Assembly pencile= d=20 into SB 5x on Tuesday.=20 The Assembly approved the bill Wednesday on a 74-1 vote, but the Senate=20 adjourned without resolving the dispute.=20 Assembly leaders said that unless several proposals favorable to farmers we= re=20 included in the bill, a group of Central Valley lawmakers would have oppose= d=20 it.=20 One proposal limits the amount of time interruptible agricultural customers= =20 can lose energy to four hours a day or 20 hours per month. Michael Boccador= o=20 of the Agriculture Energy Consumers Association said farmers and food=20 processors are concerned that their perishables would not be able to surviv= e=20 beyond that amount of time.=20 The provision would affect "interruptible," customers, those who volunteer = to=20 lose power in emergencies in exchange for lower rates.=20 Assemblyman Dennis Cardoza, D-Merced, a main proponent of the proposals, sa= id=20 the state's farmers are going to be the most hurt by rolling blackouts and= =20 high rates this summer and "are getting ready to leave the state if we don'= t=20 take care of the problem."=20 But the late change riled Senate leaders. Senate President Pro Tem John=20 Burton, D-San Francisco, said it would shift costs from farmers to urban=20 residents and develop special programs for agricultural customers.=20 "I think the ag people were very greedy, and what they gained in this=20 amendment, they may lose in other stuff," Burton said.=20 Assemblyman Fred Keeley, D-Santa Cruz, said he does not support some of the= =20 amendments but said that they should not prevent the conservation package= =20 from moving forward.=20 "We're trying to solve a problem," he said. "In my view, we cannot let the= =20 perfect be the enemy of the good."=20 Davis met privately with Assembly Republicans on Wednesday for two hours an= d=20 emerged saying he would talk about rate increases during tonight's=20 five-minute televised speech.=20 Republicans said they discussed proposals that would boost energy supply in= =20 the state and one to allow businesses to contract on their own for energy,= =20 which won the Democratic governor's support.=20 State Treasurer Phil Angelides, meanwhile, said he has lined up commitments= =20 for $4.1 billion in loans to keep the state going for the next few months= =20 until the sale of bonds to buy electricity. He hopes to get a total of $5= =20 billion to $6 billion in bridge loans. The money will be used to repay the= =20 state's general fund for what it has spent on power so far.=20 The loans, in turn, would be paid back with money from the bond sales. But= =20 Angelides warned that, before the bonds can be sold, he needs more=20 information from Davis about what's being spent on power.=20 "We will be selling the bonds in the public marketplace and so information= =20 must be made publicly available," he said.=20 The treasurer, who like Davis is a Democrat, said he wants to see the=20 information and the administration's long-term plan before he supports=20 selling bonds in excess of $10 billion, the initial estimate of the bond=20 sale.=20 If the bond sale is delayed, he said, the state could end up paying a highe= r=20 interest rate on the bridge loan, which comes due Aug. 29.=20 Tim Gage, Davis' finance director, said in a news release Wednesday that it= =20 was Angelides' bond underwriter, J.P. Morgan, who told him that more than $= 10=20 billion might be needed. Gage said Angelides is well aware that the=20 Department of Water Resources, which is buying power on behalf of the state= ,=20 has gone to great lengths to estimate how much money it needs.=20 Davis has come under fire from legislators, the media and others for not=20 disclosing more details about power purchases. The administration says that= =20 revealing more would compromise the state's bargaining position.=20 Angelides also said that if Pacific Gas and Electric or Southern California= =20 Edison challenges a Tuesday decision by the Public Utilities Commission=20 setting the state's share of electricity revenues, the bridge loan could be= =20 held up.=20 PG&E spokesman Ron Low said the utility is reviewing the PUC decision to se= e=20 if all its costs of buying power will be covered.=20 The company has 10 days from Tuesday to ask for a rehearing. If PG&E decide= s=20 not to seek a new hearing, Angelides said, he would expect to complete the= =20 bridge loan within another week.=20 Angelides said that officials should start turning their attention from=20 paying for power to driving down the costs of electricity by enacting an=20 excess profits tax on generators or buying power plants.=20 A state Senate committee Thursday approved a vaguely defined bill to impose= a=20 windfall profits tax on power generators. Under the bill, the revenues rais= ed=20 by the tax would be returned to ratepayers.=20 "It really doesn't get at the fundamental problem, which is supply," said= =20 Martin Wilson, a lobbyist for Houston-based Reliant Energy Inc., which owns= =20 generating plants in California.=20 Wilson said the tax could actually worsen the supply problem by creating "a= =20 major disincentive" to building power plants in California.=20 The Bee's Kevin Yamamura can be reached at (916) 326-5542 or=20 kyamamura@sacbee.com.=20 Bee Staff Writer Dale Kasler contributed to this report.=20 ---------------------------------------------------------------------------= --- ---------------------------------------------------------- Democrats urge U.S. price controls By David Whitney Bee Washington Bureau=20 (Published April 5, 2001)=20 WASHINGTON -- Nearly three dozen Democratic House members from California,= =20 Oregon and Washington joined in support of legislation to impose mandatory= =20 controls on wholesale electricity prices Thursday amid indications that the= =20 issue is fast becoming a political powder keg.=20 The legislation was endorsed by House Minority Leader Dick Gephardt, D-Mo.,= =20 who stood shoulder-to-shoulder with a large contingent of West Coast=20 Democrats at an outdoor news conference. The House members denounced the Bu= sh=20 administration and the Federal Energy Regulatory Commission for doing nothi= ng=20 as prices zoom ever higher in a market of perpetual shortage.=20 "They are going to keep FERCing us day in and day out," said Rep. Peter=20 Defazio, D-Ore., in a word play on the acronym for the regulatory commissio= n.=20 "If the Bush administration is frozen in inaction, congressional members wi= ll=20 step forward and exert action," Gephardt said.=20 With the West Coast summer of power shortages fast approaching, Rep. Joe=20 Barton, the Texas Republican who heads the House Energy and Commerce energy= =20 subcommittee, had intended to roll out an energy bill by this week.=20 But the House recesses Friday for a two-week spring break, pushing off any= =20 House bill until late April. And Barton's spokeswoman, Samantha Jordan, sai= d=20 it's not certain now that Barton will even introduce legislation as a resul= t=20 of six days of hearings on the California crisis.=20 "He hasn't decided to do a bill," Jordan said. "He's still looking at=20 options."=20 Some utility and Democratic sources said the White House has quietly urged= =20 Barton to slow down work on an energy bill because it is worried that=20 Democrats will offer the price-control legislation as an amendment.=20 With fears spreading in the Northeast that New York and possibly other stat= es=20 could face similarly skyrocketing electricity costs as air conditioners beg= in=20 turning on in a few weeks, the White House is said to be concerned that suc= h=20 an amendment could squeak through Congress and force the president's hand o= n=20 a veto.=20 Last week Barton began circulating a list of ideas for inclusion in an=20 emergency bill. Among the ideas is requiring the FERC to determine if price= s=20 are being unreasonably jacked up by producers -- something the commission= =20 already has decided.=20 The ideas also included starting up backup generators on federal buildings,= =20 authorizing portable generators to be set up and run on military property,= =20 authorizing the Defense Department to "explore connecting Navy nuclear-ship= =20 generators to the electric grid" and firing up mothballed non-nuclear plant= s.=20 One congressional source said the administration has begun dispatching=20 regulatory officials to federal property in California looking at any and= =20 every suitable location for "dropping in" portable generation plants.=20 The Bee's David Whitney can be reached at (202) 383-0004 or=20 dwhitney@mcclatchydc.com.=20 ---------------------------------------------------------------------------= --- ------------------------------------------------------------ California governor prepares to address state on energy=20 By Jennifer Coleman ASSOCIATED PRESS=20 April 5, 2001=20 SACRAMENTO =01) While California Gov. Gray Davis prepared to address the st= ate=20 Thursday night on energy, economic forecasters predicted his constitutents= =20 will pay higher taxes, watch out-of-state investments evaporate and suffer= =20 scrapped public projects because of the ongoing power crisis.=20 The UCLA Anderson Forecast says the worst economic threat could come from= =20 state government itself and its scrutiny of private power suppliers, which= =20 along with blackouts and brownouts, could scare new businesses away.=20 Davis addressed some commercial concerns Wednesday by breaking with his=20 appointees on the Public Utilities Commission by saying private companies a= nd=20 other large power users should be allowed to contract directly for power wi= th=20 generators.=20 State gets $4.1 billion infusion=20 All California hospitals exempted from blackouts=20 Quick fix proposed for power problems=20 Continuing coverage: California's Power Crisis=20 ?=20 Critics of allowing direct access include PUC President Loretta Lynch and T= he=20 Utility Reform Network, who say residential customers and small businesses= =20 unable to garner such contracts will get stuck with the bill for the billio= ns=20 of dollars the state has and will spend buying electricity for the customer= s=20 of three cash-strapped utilities.=20 Word came from California's treasurer Wednesday that the state had secured= =20 $4.1 billion in loans to help pay back the state's power buys.=20 Facing continued refusal from federal energy regulators to cap high energy= =20 prices, Davis reassessed the tools at his disposal Wednesday, saying he is= =20 open to supporting a windfall-profits tax being proposed by lawmakers on=20 electric generators that have made a fortune selling power to California th= is=20 year.=20 Assemblywoman Ellen Corbett, D-San Leandro, introduced a windfall-profits t= ax=20 bill Wednesday that would tax gross receipts that "significantly exceed" th= e=20 cost of producing power.=20 It would also tax profits of power marketers who have bought power and late= r=20 sold it at much higher rates. The rate of the tax was not specified in the= =20 bill, and Corbett said she expects the details to be worked out later.=20 "We continue to allow some electricity generators and middlemen to reap=20 enormous profits on their sales of electricity into the state. This=20 profiteering must stop," said Corbett.=20 Senators on the Revenue and Tax Committee have also inserted similar langua= ge=20 into a pending bill.=20 Tom Williams, spokesman for Duke Energy, said he doubted a tax on a selecte= d=20 industry would be legal. The tax would discourage generators from building= =20 new power plants in California, he said.=20 "The governor has made very clear that he is trying to do whatever he can t= o=20 increase the amount of generation in California and reduce the price.=20 Windfall profits taxes do neither of these," said Williams.=20 "Clearly it would have an adverse affect on our decisions on new investment= =20 or following through on our planned investments," he said.=20 Davis said Wednesday he generally opposes treating profitable companies in= =20 that manner, "but these profits are outrageous and are at our expense. The= =20 only things companies understand is leverage. I'm not saying I'll sign it a= nd=20 I'm not saying I won't sign it."=20 For the first time, Davis also said the state should let companies buy thei= r=20 power from generators instead of going through the utilities.=20 A January law that allowed the state to begin buying power for two nearly= =20 bankrupt utilities barred such side contracts.=20 "That was done originally with the thought the state would have more power= =20 and no one to sell it to if companies got off the grid," Davis said. "But o= ur=20 problem is the opposite this summer. If companies want to get off the grid,= =20 we should encourage, not discourage that."=20 The Democratic governor's comments came after he met behind closed doors fo= r=20 more than two hours with Assembly Republicans, who have sharply criticized= =20 his handling of the energy crisis.=20 "I think everyone agreed there are no political winners unless we resolve= =20 this challenge," Davis said. "There were a lot of suggestions in there I'm= =20 willing to adopt."=20 For instance, he agreed that San Diego Gas and Electric customers should ha= ve=20 a different benchmark for receiving 20 percent rebates under his program fo= r=20 consumers who cut their energy use by 20 percent this summer.=20 Unlike other Californians, San Diego residents faced soaring rates last=20 summer and began conserving then, so Davis said they should have to cut 20= =20 percent from 1999 energy use levels instead of using last summer as a=20 starting point.=20 Davis said he hasn't written the remarks he will make during a five-minute= =20 address at 6:05 p.m. Thursday that he has asked California television=20 stations to carry live.=20 However, he said he will "share with them (viewers) the progress that we've= =20 made and what we have to get through."=20 He is expected to talk about the more than 40 percent rate increases approv= ed=20 last week by the PUC for customers of Pacific Gas and Electric Co. and=20 Southern California Edison Co.=20 ---------------------------------------------------------------------------= --- ---------------------------------------- State gets $4.1 billion infusion=20 Treasurer to Davis: Don't pay generators' 'ransom' By Ed Mendel=20 UNION-TRIBUNE STAFF WRITER=20 April 5, 2001=20 SACRAMENTO -- State Treasurer Phil Angelides announced an agreement for a= =20 $4.1 billion short-term loan yesterday that would provide urgently needed= =20 cash to begin repaying the state general fund for power purchases.=20 Angelides said the loan is needed to protect the state's credit rating and= =20 preserve "important funding for programs such as education, public safety a= nd=20 children's services."=20 The treasurer also sent a letter to Gov. Gray Davis warning that plans to= =20 increase the size of a $10 billion bond, which would repay the short-term= =20 loan and finance future power purchases, may only delay the "reality of=20 runaway energy prices."=20 Angelides urged Davis and the Legislature to send power generators a messag= e=20 by considering a windfall profits tax or seizure of power plants that=20 utilities sold under a failed deregulation plan.=20 "These are very tough guys," Angelides said, "and you don't negotiate with= =20 them by trying to figure out night and day how to pay their ransom. You've= =20 got to push back on them. It's the only thing they understand."=20 The state Senate began moving a bill yesterday that would impose a windfall= =20 profits tax on generators. The governor declined to say whether he would si= gn=20 the bill, but Davis did say its movement was "not an entirely unpleasant=20 event."=20 "These profits are just outrageous," said Davis, echoing the treasurer's vi= ew=20 of the generators. "They are coming at our expense directly, and the only= =20 things companies understand is leverage."=20 The governor, who had previously briefed Democrats in both houses on his=20 handling of the electricity crisis, emerged from a two-hour meeting with=20 Assembly Republicans yesterday and announced two agreements.=20 Davis said he would make an adjustment sought by San Diego County residents= =20 in his "20/20" conservation plan, which reduces electricity bills 20 percen= t=20 if customers reduce their energy use 20 percent below the same summer month= =20 in the previous year.=20 San Diego Gas and Electric ratepayers reduced their power use last summer= =20 when the utility became the first to be deregulated and bills doubled and= =20 tripled before rates were capped by legislation.=20 The governor also said that businesses and other large users of electricity= =20 should be allowed to contract directly with generators for power. He said n= ew=20 contracts were barred because the state thought it would need customers to= =20 pay for state power purchases.=20 "Our problem is just the opposite," Davis said. "We should encourage that a= nd=20 not discourage it."=20 Assembly Republicans said Davis told them that he will discuss the need for= =20 an increase in electricity rates in a statewide television address schedule= d=20 for 6:05 p.m. today.=20 The state Public Utilities Commission, controlled by Davis appointees,=20 abruptly imposed the biggest rate increase in state history on Pacific Gas= =20 and Electric and Southern California Edison customers last week. An SDG&E= =20 rate increase is pending.=20 Davis said the PUC rate increase was "premature" and promised to give his= =20 view after studying data. The PUC increase was more than 40 percent for=20 electricity and about 26 percent in the total bill, which includes=20 transmission and distribution costs.=20 The state began buying power for utility customers in mid-January after PG&= E=20 and Edison were pushed to the brink of bankruptcy. Their rates were frozen= =20 under deregulation as wholesale power costs soared, producing a debt of abo= ut=20 $13 billion.=20 State officials are considering purchasing the utilities' transmission=20 systems as a way to provide the utilities with money to pay that debt.=20 Sempra Energy Chief Executive Stephen Baum said yesterday in New York that= =20 the company, which owns SDG&E, wants $1.4 billion for its part of the grid,= =20 but state officials have offered $1.2 billion. The state has not disclosed= =20 any details about the SDG&E negotiations.=20 Edison reached a tentative agreement with the state last month to sell its= =20 larger part of the grid for $2.76 billion.=20 So far, the state has spent about $4 billion to buy electricity. Angelides= =20 said he has a commitment for a $4.125 billion short-term or "bridge" loan= =20 from three lenders: J.P. Morgan, $2.5 billion; Lehman Brothers, $1 billion;= =20 and Bear Stearns, $625 million.=20 The treasurer said he hopes to get other lenders and reach a total of $5=20 billion to $6 billion. But, Angelides said, the loan could be blocked if=20 utilities challenge a decision by the PUC on Tuesday that gives the state= =20 $3.5 billion a year from the monthly bills collected by utilities from=20 ratepayers.=20 PG&E and Edison have said they believe the PUC action does not leave them= =20 enough money and will drive them deeper into debt. The utilities said=20 yesterday that they have not decided whether to challenge the PUC ruling.= =20 Angelides said the utilities have 10 days from Tuesday to challenge the PUC= =20 decision. He said that if the PUC did not quickly resolve a challenge,=20 legislation would be needed to allow the short-term loan. If the utilities = do=20 not challenge the PUC action, he would expect to close the short-term loan = by=20 about April 23.=20 Angelides said the short-term loan, obtained at 5.38 percent interest, must= =20 be repaid by Aug. 29 or it will automatically convert into a long-term loan= =20 with an interest rate that is two percentage points higher and due Aug. 29,= =20 2004.=20 The plan is to repay the short-term loan with the biggest municipal bond in= =20 the history of the nation, which would be paid off by ratepayers over a doz= en=20 years. But Angelides and the Davis administration disagree about how large= =20 the bond should be.=20 Angelides wanted to limit the bond to $10 billion. He warned last month tha= t=20 the money, which will also pay for upcoming electricity purchases, could be= =20 exhausted by September if the state continues to buy power at high rates.= =20 PUC President Loretta Lynch said the $3.5 billion in ratepayer revenue=20 allocated to the state would allow a bond issue of $12 billion to $14=20 billion. The Davis administration says a bond in that range is needed to=20 spread the cost of power purchases over a decade and avoid a huge rate=20 increase.=20 Angelides said a bond cannot be issued unless the Davis administration=20 publicly discloses detailed information about power purchases -- prices pai= d=20 in the past and estimates for the future. Newspapers and Republican=20 legislators have filed lawsuits to force the release of the information.=20 The Legislature yesterday sent Davis a bill by state Sen. Dede Alpert,=20 D-Coronado, that would cap rates for businesses served by SDG&E at 6.5 cent= s=20 per kilowatt-hour.=20 Currently, businesses whose peak demand exceeds 100 kilowatt-hours a month= =20 pay market rates for electricity, which in some cases have soared to 37 cen= ts=20 per kilowatt-hour. An Alpert aide said Davis is expected to sign the bill. Staff writer Bill Ainsworth and Bloomberg News Service contributed to this= =20 report.=20 ---------------------------------------------------------------------------= --- ------------------------------------ All California hospitals exempted from blackouts=20 By John Berhman=20 UNION-TRIBUNE STAFF WRITER=20 April 5, 2001=20 All hospitals in California, regardless of their size, are now ensured that= =20 their power will remain on during rolling blackouts, thanks to a ruling by= =20 the state Public Utilities Commission.=20 Previously, hospitals with fewer than 100 beds were not exempt from rolling= =20 blackouts imposed by power companies, Jan Emerson, a vice president for the= =20 California Healthcare Association, said yesterday.=20 "The PUC had that 100-beds-or-more rule on the books since 1980, but they= =20 came to realize that there is no magic number when you are putting people's= =20 lives in jeopardy," Emerson said.=20 The PUC decision, made on Tuesday, "takes the decision out of the hands of= =20 the power companies" and ensures electricity for all hospitals, she said. S= an=20 Diego Gas & Electric Co. has been cooperative about maintaining power to=20 hospitals during rolling blackouts here, Emerson said, but the state's othe= r=20 two companies, Southern California Edison and Pacific Gas & Electric, have= =20 not been.=20 She said that during blackouts of March 19 and 20, about a dozen hospitals= =20 lost power, ranging in size from the 750-bed Long Beach Medical Center to t= he=20 40-bed Adventist Health Redbud Community Hospital in Clear Lake, north of S= an=20 Francisco.=20 A lawsuit filed March 22 on behalf of the hospitals, and backed by the heal= th=20 care association, forced the commission to change its policy, Emerson said.= =20 The decision was well-received in San Diego County.=20 "We had been assured by SDG&E that we would be given a high priority to kee= p=20 our power on during a rolling blackout," said Corey Seale, chief executive= =20 officer for the 47-bed Fallbrook Hospital. "But we're very pleased by the P= UC=20 action because this guarantees us service absolutely even during rolling=20 blackouts."=20 Utility companies have argued that hospitals have backup generators that ca= n=20 kick in during rolling blackouts, Emerson said, "but that can take 10 to 15= =20 seconds to occur, and for someone undergoing open-heart surgery, that delay= =20 could be fatal."=20 ---------------------------------------------------------------------------= --- -------------------------------------- Quick fix proposed for power problems=20 Clean-air waivers part of GOP package By Toby Eckert=20 COPLEY NEWS SERVICE=20 April 5, 2001=20 WASHINGTON -- A key House Republican said yesterday he is drafting emergenc= y=20 legislation to help California and other states facing power crises this=20 summer, and hopes to put it on a fast track for passage.=20 Rep. Joe Barton, R-Texas, indicated his proposal would allow waivers of=20 clean-air regulations that critics say hamper power generation, but would n= ot=20 include electricity price controls sought by California officials. Barton= =20 backed away from the controversial idea of plugging nuclear-fueled Navy=20 vessels into the power grid.=20 Barton -- who chairs the House energy and air quality subcommittee -- said = he=20 hopes to "get some bipartisan consensus" before actually introducing=20 legislation. But his approach already is alienating some Democrats.=20 "The clean-air moves would be an enormous problem," said a spokesman for Re= p.=20 Henry Waxman, D-Los Angeles, a subcommittee member. "If you're not doing=20 (price controls) and instead weakening clean-air laws, you're not really=20 doing anything."=20 Capitol Hill sources said Barton won't introduce a bill if it appears=20 subcommittee members from Western states would be able to attach language= =20 calling for price controls. He is also awaiting a green light from the Whit= e=20 House, the sources said.=20 Democrats from California, Oregon and Washington, joined by House Minority= =20 Leader Richard Gephardt, D-Mo., introduced a bill Wednesday that would=20 require federal regulators to impose wholesale price controls in the West f= or=20 the next two years and order refunds for high electricity prices dating bac= k=20 to June 1, 2000. New power plants would be exempt from the price limits,=20 which would be based on the cost of producing power, plus a profit margin.= =20 In a speech to the National Energy Marketers Association, Barton said he=20 hopes his subcommittee can pass a bill shortly after Congress returns April= =20 22 from its Easter recess. It would be the first move by Congress to addres= s=20 the power crunch roiling California and the West and looming in other=20 regions.=20 "California is too big a part of our economy, too big a part of our=20 population base. We can't just say, 'Let California take care of=20 California,'?" Barton said. " .?.?. Unless we pass a law that says, 'Summer= =20 shall not start in California until September the first,' we've got to do= =20 something right now to help them this summer."=20 Barton refused to say exactly what he would propose. But he indicated that = a=20 draft bill he planned to circulate among subcommittee members would paralle= l=20 proposals he sent to the White House recently.=20 They included directing the EPA to waive nitrogen oxide emission limits on= =20 power plants if a governor declares an electricity emergency, increasing th= e=20 use of backup generators, allowing the start-up of mothballed nuclear power= =20 plants, providing federal funding for the expansion of a crucial Central=20 Valley power conduit known as Path 15 and directing the Federal Emergency= =20 Management Agency to make plans for blackout response.=20 Barton said "technical reasons" sidelined his proposal to use nuclear-power= ed=20 Navy vessels to keep the lights on in California.=20 "Plus, you've got some national security issues. Do you really want a nucle= ar=20 aircraft carrier that might need to be dispatched to the South China Sea ti= ed=20 up to the grid in San Diego?" he added.=20 The Bush administration was said to be less than impressed with the idea.= =20 Barton said he didn't "have any definitive answers" yet from the White Hous= e=20 on his proposals.=20 Barton did not waver in his opposition to price controls, dismissing them a= s=20 "a political expedient that can hold down the price until the next election= ."=20 President Bush also opposes price limits.=20 ---------------------------------------------------------------------------= --- ----------------------------------- Treasurer Urges Disclosure of Power Cost=20 Energy: Angelides warns that $10-billion bond issue to finance purchases=20 can't be sold otherwise. Davis, who has resisted such a move, sees a chance= =20 of more blackouts.=20 By MIGUEL BUSTILLO and DAN MORAIN, Times Staff Writers=20 ?????SACRAMENTO--State Treasurer Phil Angelides warned Wednesday that he=20 cannot sell a record $10 billion in bonds to finance purchases of electrici= ty=20 unless the state reveals the price it is paying for power--something Gov.= =20 Gray Davis has refused to do. ?????The warning came as Davis acknowledged that his efforts to secure enou= gh=20 electricity to meet demand could fall short, raising the possibility of mor= e=20 blackouts. ?????"The real crunch," Davis said Wednesday, "will be in May and June and= =20 late April"--much earlier than the usual peak in August, September and earl= y=20 October. Angelides said he cannot secure the largest municipal bond offerin= g=20 in American history until Wall Street can see what California is spending o= n=20 power and what it expects to spend in the future. ?????"You can't go to the marketplace to sell $10 billion in bonds and say,= =20 'We don't have a public plan,' " Angelides said. ?????Angelides announced that he has secured $4.1 billion in short-term=20 "bridge" financing to repay the state for power purchases until the bonds a= re=20 issued. That deal remains clouded, in part by the utilities' resistance to= =20 using customer payments to repay the bonds promptly. ?????The governor is scheduled to give a five-minute televised address on= =20 energy at 6:05 tonight, expected to be carried by all Los Angeles televisio= n=20 stations. ?????In addition to discussing the potential for more blackouts, Davis is= =20 expected to outline his efforts to expand power production, renew his call= =20 for Californians to cut electricity use and address the question of rate=20 hikes. ?????"I'm certainly going to share with [Californians] the progress we've= =20 made and what we have to do together over the near term to get through this= =20 challenge," Davis told reporters. " . . . We have to accept responsibility= =20 for solving the problem. I'm going to lay out exactly how to do that." ?????Sensing the urgency, the Legislature spent much of Wednesday pushing= =20 forward a $1.2-billion package of conservation bills crucial to helping=20 California escape widespread power outages during the hot season. ?????And in another move to boost summer supplies, the California Energy=20 Commission approved two "peaking plants" under a new fast-track, 21-day=20 permit process ordered by Davis. ?????Designed to produce power to meet sudden demand, such plants are a maj= or=20 part of the governor's plan to help avert blackouts this summer, and=20 commissioners approved them unanimously. But they expressed qualms about th= e=20 vague standards in place for the plants--one to be built near San Diego, th= e=20 other in Palm Springs--in part because the facilities have been exempted fr= om=20 the usual environmental reviews. ?????Most experts assume that peaking plants are pressed into service only= =20 when demand for electricity is highest. But the facilities approved Wednesd= ay=20 are capable of operating for as much as 85% of the time. ?????The partnership that owns the plants--a venture between Shell Oil and = an=20 arm of engineering giant Bechtel Enterprises--is in talks to sell electrici= ty=20 to the state for 10 years or more. But current contracts call for the sale = of=20 500 hours of electricity for the next three years, said John Jones, a=20 representative of the partnership. ?????The company would sell the rest of its electricity on the open market,= =20 presumably at higher prices--and not necessarily in California. ?????Suggesting that the facilities may not fit the definition of peaking= =20 plants, outgoing Commissioner Robert Laurie called for more public disclosu= re=20 about the implications of Davis' emergency order. ?????"They may be large; they may be small," Laurie said. "They may operate= =20 300 hours; they may operate 8,000 hours." ?????Measures Focus on Cutting Consumption ?????The conservation bills that lawmakers addressed Wednesday--supported b= y=20 environmentalists and the business community alike--represent the largest= =20 such investment in history and are designed to get Californians to cut ener= gy=20 consumption this summer. ?????The measures would provide everything from rebates for buyers of new,= =20 efficient refrigerators to free power-saving lightbulbs for poor people. Al= l=20 told, the measures are expected to save California roughly the amount of=20 electricity produced by eight power plants. ?????Legislators had hoped to get the bills to the governor's desk by the e= nd=20 of this week, but some turbulence slowed the progress. ?????The trouble began Tuesday, when Assembly Democrats and Republicans fro= m=20 agricultural areas said they would not vote for the Senate bill, SB 5X, unt= il=20 it was amended to include programs to help agriculture. Concluding that=20 opposition might stall the bill in the lower house, Assembly leaders agreed= =20 to the amendments, including one that protects agribusiness from blackouts. ?????That move infuriated the bill's author, Sen. Byron Sher (D-Stanford),= =20 and started a war of words between the houses. ?????"What they did and the way they did it I found a little untoward," sai= d=20 Senate Leader John Burton (D-San Francisco), calling the agricultural=20 interests "greedy." ?????In the end, the bill cleared the Assembly by a vote of 74 to 1=20 Wednesday. It now returns to the Senate. A second conservation bill, AB 29X= =20 by Assemblywoman Christine Kehoe (D-San Diego), containing more than $400= =20 million more for conservation programs, also awaits action there. ?????While the governor has been pushing for the bills, their price tag=20 exceeds what he has pledged to spend on conservation, and he is expected to= =20 trim the legislation once it arrives on his desk. ?????Concerns About Depleting Treasury ?????Angelides, meanwhile, sent a letter to Davis outlining his problems in= =20 issuing the $10 billion in bonds needed to repay the state for the power it= =20 has been buying on the spot market. To avert mass blackouts, California mad= e=20 its risky foray into the power-buying business in January after the state's= =20 two largest utilities said they were nearly bankrupt and generators would n= o=20 longer sell to them. ?????The state has been buying power at the rate of roughly $50 million a= =20 day. A Davis-sponsored plan calls for the $10 billion in bonds to repay the= =20 state; the bonds, in turn, would be retired by utility customers through=20 their monthly bills. ?????That plan was based on the premise that the state would be able to=20 stabilize, and eventually lower, the price of electricity by entering into= =20 long-term contracts with power suppliers. Those lower prices have yet to=20 materialize, raising increasing questions about whether $10 billion will be= =20 enough. ?????"I think there is no doubt that if we continue to chunk out general fu= nd=20 money without end, what's going to happen is that we're going to deplete ou= r=20 treasury, we're going to harm the very programs that we care most about, an= d=20 our credit rating will come down," Angelides said. ?????The governor's finance director, Tim Gage, said such fears are=20 unfounded. Officials have planned all along to release some details on=20 California's power purchases to the Public Utilities Commission so the pane= l=20 could determine how much money is needed to repay the bonds, he said: "I=20 would think that any information required to sell the bonds will be provide= d.=20 . . . I don't know how specific it's going to have to be." ?????Also on Wednesday: ?????* The Assembly and Senate passed a bill placing price caps on large=20 power users in San Diego, currently the only area in California where some= =20 are feeling the full sting of the deregulation law adopted in 1996. San Die= go=20 was the first and only area where state regulators lifted price caps, the= =20 expected outcome of deregulation. The result last summer was that bills=20 doubled or tripled virtually overnight. ?????The bill, SB 43 by Sen. Dede Alpert (D-Coronado), would protect medium= =20 and large power users such as businesses, school districts and hospitals fr= om=20 the full cost of electricity on the open market. Homeowners and other small= =20 consumers are protected under legislation approved last year. ?????* Lawmakers in both houses announced legislation that would place a=20 windfall profits tax on power companies that sell electricity to California= =20 at excessive prices. "It's time to gouge the gougers," said Assemblywoman= =20 Dion Aroner (D-Berkeley), a sponsor of the Assembly proposal. ?????In the upper house, a bill (SB 1X) that would tax power producers'=20 profits at an unspecified rate and rebate the money to taxpayers cleared it= s=20 first committee hurdle. Davis said he has "an open mind" about the=20 legislation. ?????Power producers said a windfall tax would do nothing to solve the=20 fundamental problem--a shortage of electricity--and would have an=20 inflationary effect because the expense would be passed on to consumers. ?????* California Public Utilities Commission President Loretta Lynch said = no=20 additional electricity rate hikes will be necessary if Californians conserv= e=20 energy and electricity producers don't raise prices. ?????Lynch, speaking to reporters after a speech Wednesday at the UCLA=20 Anderson Business Forecast quarterly meeting on the economy, also said=20 conservation efforts endorsed by Davis will help keep prices down by reduci= ng=20 demand. ?????"If we conserve, some of those sellers will get cut out," said Lynch. ---=20 ?????Times staff writers Julie Tamaki, Seema Mehta, Nancy Vogel, Stuart=20 Silverstein and Jenifer Warren contributed to this story. ---------------------------------------------------------------------------= --- ---------------------------------------------------------------- House GOP Moves to Draft Plan to Give the West Summer Energy Aid=20 By RICHARD SIMON and RICARDO ALONSO-ZALDIVAR, Times Staff Writers=20 ?????WASHINGTON--Congressional Republicans are drafting an emergency bill t= o=20 help the West cope with a summer of predicted electricity turmoil, offering= =20 such possible measures as aid to ease a notorious bottleneck in the=20 California transmission system and directing federal disaster officials to= =20 prepare for power outages. ?????The move came as Democratic criticism of the Bush administration's=20 response to the power crunch intensified Wednesday. The administration has= =20 become more defensive about criticism that it has left California on its ow= n=20 to solve its crisis. ?????Rep. Joe Barton (R-Texas), the influential chairman of the House energ= y=20 and air quality subcommittee, said he is splicing together the emergency=20 legislation and hopes to introduce it when Congress returns from the Easter= =20 recess. ?????"We can't just say, 'Let California take care of California,' " Barton= =20 said at an energy conference in Washington. ?????Although the bill will not contain the price caps sought by Democrats= =20 and a handful of Republicans, Barton said in an interview that he will allo= w=20 amendments in support of price controls during committee deliberations. ?????"They will have a chance to see whether the votes are there," Barton= =20 said. "I don't think the votes are there, but I see no reason why [supporte= rs=20 of price controls] can't have the full right to offer an amendment." ?????A list circulated by GOP staff in recent weeks includes a range of ide= as=20 such as relaxing environmental rules, subject to a governor's request;=20 increasing federal energy assistance to low-income consumers; firing up=20 mothballed power plants; and directing federal facilities to reduce energy= =20 use by 10%. ?????Some of the ideas are more practical than others. Referring to a=20 proposal to connect nuclear ships to the electricity grid, Barton said: "Do= =20 you really want a nuclear aircraft carrier that might need to be dispatched= =20 to the South China Sea tied up to the grid in San Diego?" ?????On the issue of relaxing clean air rules--another sensitive point for= =20 Democrats--Barton said his bill would not make permanent changes in=20 environmental requirements. Instead, it would grant governors the flexibili= ty=20 to allow power plants that have exceeded emissions limits to temporarily ke= ep=20 operating during emergencies. ?????That, he contended, would be less harmful than one likely alternative:= =20 individuals and companies relying on their own generators during blackouts.= =20 "It doesn't make a lot of sense to allow diesel generators to kick in and= =20 shut down units that use natural gas," Barton said. ?????Separately, Sen. Frank Murkowski (R-Alaska), chairman of the Senate=20 Energy and Natural Resources Committee, has asked for an inventory of all= =20 possible energy sources in the West and "what actions will be necessary to= =20 bring those sources online or increase their current generation." ?????But Democrats said that without price controls, Republican-sponsored= =20 bills would be of little help this summer to California. ?????"If it doesn't provide wholesale price caps, it doesn't do what is=20 needed to help California," said Phil Schiliro, chief of staff for Rep. Hen= ry=20 A. Waxman (D-Los Angeles). ?????House Democratic Leader Richard Gephardt of Missouri joined a group of= =20 House Democrats from California, Oregon and Washington in unveiling price= =20 control legislation. ?????Rep. Peter A. DeFazio (D-Ore.) accused the Bush administration of=20 conducting "faith-based regulation" of energy prices. "Flip the switch and= =20 pray the lights come on, and that you'll be able to afford the bill at the= =20 end of the month," he said. ?????The administration contends that price controls will discourage=20 investment in new power plants. "Price caps don't work," Barton said in=20 remarks to the National Energy Marketers Assn. "Price caps aren't going to= =20 get you more supply." ?????Sen. Dianne Feinstein (D-Calif.) is preparing to introduce another pri= ce=20 control bill in the Senate. Acknowledging Bush's opposition to price=20 controls, she said her proposal seeks only "cost-based rates."=20 ?????Price control supporters say they can structure the controls to ensure= =20 that power suppliers recover their costs and make a "reasonable" profit. Th= ey=20 also say they can exempt new power plants in order to address Bush's concer= ns. ?????Barton warned that the federal measures are unlikely to prevent=20 blackouts altogether. ?????"It's going to be a tough summer out West. . . . I don't see any=20 scenario where you don't have severe blackouts on a consistent basis this= =20 summer," he said.=20 ---------------------------------------------------------------------------= --- ------------------------------------------------------------------- California's Electricity Woes Power Up Northwest=20 Bonneville agency's sales to Golden State keep rates low for customers up= =20 north. But doubts remain on how long the region can benefit from its federa= l=20 dams.=20 By KIM MURPHY, Times Staff Writer=20 ?????PORTLAND, Ore.--As California searched last summer for surplus=20 electricity to keep its air conditioners humming, the Bonneville Power=20 Administration stepped forward to help. ?????How much did the marketing agency charge for each of the 489,000=20 megawatt-hours it shipped south, power generated by the massive federal=20 hydropower dams in the Northwest? ?????If you guessed $22.39, the amount BPA charges public utilities in=20 Seattle, think again. The average price was three times that. And at the=20 height of the power-marketing frenzy, Bonneville got $750 a megawatt-hour, = 33=20 times what public utilities and private firms in the Pacific Northwest were= =20 paying. ?????As power generators throughout the West profited from California's=20 energy appetite last year, so too did Northwest customers: BPA netted $400= =20 million from sales to the Golden State, which helped hold down rates for=20 private electricity users here who already pay the lowest rates in the=20 nation--half of what Californians pay. ?????And major aluminum, steel and chemical companies across the=20 region--which not only pay lower rates but also have the right to purchase= =20 certain allotments of energy produced by the federal dams--stand to pocket= =20 $1.8 billion in the next few months by reselling or exchanging their shares= =20 so Bonneville can help California out of its crisis. ?????How long, Northwestern politicians wonder, can the region hold onto th= e=20 exclusive benefits of a multibillion-dollar network of 29 federal dams on t= he=20 Columbia and Snake rivers--legendary edifices such as Bonneville and Grand= =20 Coulee? ?????How long, others ask, should it be able to? ?????California's two Democratic senators--Dianne Feinstein and Barbara=20 Boxer--have questioned the fairness of locking in low power rates "for a=20 select group of consumers, to the detriment of tens of millions of others= =20 whose taxes also paid for the facilities that generate and manage that powe= r=20 source." ?????Said David Luken of the Edison Electrical Institute, a coalition of=20 investor-owned utilities: "It would be as if California took all the revenu= es=20 from offshore oil and used it to hold down gasoline prices in Los Angeles." ?????Critics estimate that BPA routinely sells its power to customers in th= e=20 Northwest for about $1 billion a year less than it could earn at market=20 rates. Last year, the gap spread to about $3 billion. The BPA is the major= =20 reason homeowners in Seattle are paying 5.4 cents a kilowatt-hour for=20 electricity; Southern California Edison customers pay 10.2 cents. ?????After suspending sales to California late last year because the power= =20 the BPA was able to generate in the face of an extreme drought was needed i= n=20 the Northwest, the agency briefly resumed sending electricity south last=20 month--dispatching between 600 to 1,000 megawatts an hour for about eight= =20 days between March 7 and March 21. ?????Although officials would not disclose the negotiated price, the market= =20 rate for power then ranged from $210 to $350 a megawatt-hour. ?????Despite the windfall sales to California, however, the BPA has its=20 problems. With contracts to deliver much more power than it can generate, B= PA=20 has said it would have to institute rate increases totaling $3 billion a ye= ar=20 or more unless it can wean substantial blocs of customers off of federal=20 power. ?????The belt-tightening threatens the region's aluminum industry and=20 ratepayers in Washington state, Oregon, Montana and Idaho--some of whom=20 already have seen their electric bills rise 50% or more over the last few= =20 months. ?????The looming fiscal emergency is so severe that Oregon Gov. John=20 Kitzhaber recently proposed seeking a temporary reprieve from most of BPA's= =20 annual $732-million debt repayment. That is money to reimburse federal=20 taxpayers, who funded the region's massive system of concrete and generator= s. ?????Most Northwestern political leaders are loath to miss a Treasury=20 payment--as many believe that would leave the agency ripe for plunder. ?????That is the region's greatest fear: that California's hefty=20 congressional delegation will make a grab for the agency's power. ?????The debate over who controls BPA--and who benefits from it--promises t= o=20 emerge as a key question before Congress as the West's energy woes continue= . ?????Several Northwestern legislators have proposed buying BPA back from th= e=20 federal government in an attempt to lock in benefits for regional ratepayer= s.=20 Congressional lawmakers last year countered with a proposal to force=20 Bonneville to sell low-cost power to private utilities in California. Some= =20 also proposed auctioning BPA power at market rates--ending the cost-based,= =20 regional-preference formula. ?????BPA contracts with about a dozen users--companies such as Alcoa, Kaise= r=20 and Reynolds--that have guaranteed the energy-intensive aluminum industry= =20 access to a fifth of Bonneville's power at rates lower than those paid by= =20 other customers have come under particular scrutiny. ?????The contracts are so lucrative that Kaiser is expected to earn up to= =20 $500 million this year by shutting down its factories and remarketing its B= PA=20 power allocation. ?????BPA cites the aluminum industry's value as a reliable, steady-load=20 buyer--as opposed to residential utilities, whose fluctuating loads are=20 harder to serve. ?????But Seattle energy analyst Kevin Bell calls the industry contracts "an= =20 incredibly bad deal." Unable to generate enough power to meet its=20 commitments, the BPA has been forced to buy power on the open market at 40= =20 cents a kilowatt-hour, supply it to firms such as Kaiser for 2 cents, and= =20 watch Kaiser sell it again for 40 cents. ?????It is, in fact, only the recently deregulated electricity market that= =20 has made BPA power an attractive deal. In the mid-1990s, clients were=20 flocking away from Bonneville to cheaper generators. Aluminum companies at= =20 the time agreed to prices that were higher than what was available elsewher= e,=20 gambling that the market price would go up. ?????"If we're going to talk about why Bonneville has preferential rates in= =20 the Northwest, shouldn't we also talk about why California has preferential= =20 rates for federal power in California?" said acting BPA administrator Steve= =20 Wright. "Federal policy is, in general, the indigenous electrical power=20 resources in a region are dedicated to the loads in that region. The power= =20 from Hoover Dam goes to the people in the Southwest. The Central Valley=20 Project goes to people in Northern California." ?????Bonneville for years has enjoyed a mutually beneficial power exchange= =20 with California. Although the agency often profits from surplus power sales= =20 to California, the majority of the power it has sent south over the years h= as=20 been either at low, long-term rates to such cities as Burbank, Glendale and= =20 Pasadena, or as part of an exchange program in which California returns twi= ce=20 as much as it borrows. ?????And while Bonneville ratepayers profited from the brief period of=20 sky-high wholesale power rates last summer, its sales represented less than= =20 1% of the California power market and probably had the effect of lowering,= =20 not raising, overall market rates, BPA officials said. ?????Indeed, Bonneville often sold power to California at less than its own= =20 cost-based rates during the first two years of deregulation after 1998. ?????And Northwestern legislators point out that the hydropower dams, for a= ll=20 their advantages, have come at considerable cost to the region: Two wild=20 rivers now are throttled. The price for trying to bring back endangered=20 salmon has reached nearly $4 billion so far, most of it borne by BPA=20 ratepayers. ?????The question of sharing the hydropower bonanza outside the Northwest= =20 never came up until the 1960s--with the construction of two major power=20 arteries linking Bonneville's transmission grid with California. The=20 846-mile-long link between Celio, Ore., and Sylmar is the world's biggest= =20 direct current power line. ?????Before agreeing to the transmission links, Northwestern politicians=20 insisted on a "regional preference" for BPA power, giving the Northwestern= =20 states first crack at power generated on the Columbia. ?????It is no different today. ?????"Unless we control the destiny of Bonneville, we're not going to contr= ol=20 the Northwest region," said Oregon state Senate President Gene Derfler, who= =20 has proposed a regional takeover of BPA. "California is definitely a threat= =20 at this point. They would take our power, all of it, and say, 'Thank you.'= =20 And what are we going to do about it? They have 52 congressmen; the Northwe= st=20 states have 15." ---------------------------------------------------------------------------= --- --------------------------------------------------------------- Davis Campaign Losing Steam=20 Energy crisis generates possible challengers for governor in 2002=20 Carla Marinucci, John Wildermuth Thursday, April 5, 2001=20 ,2001 San Francisco Chronicle=20 URL:=20 http://www.sfgate.com/cgi-bin/article.cgi?file=3D/chronicle/archive/2001/04= /05/M N113404.DTL=20 Until this week, most Democrats simply scratched their heads over talk abou= t=20 who might be crazy enough to launch a primary challenge to Gov. Gray Davis = in=20 2002.=20 After all, the Democratic governor has amassed $26 million in campaign cash= ,=20 had 60 percent approval ratings and was being talked about as a guy on the= =20 2004 Democratic presidential list.=20 That was before the phrases "rolling blackout" and "Stage 3 alert" came int= o=20 the California lexicon.=20 Davis again found himself on the defensive last weekend over the energy=20 crisis -- but it was in front of a home crowd of Democrats gathered at the= =20 state party convention. Democratic Controller Kathleen Connell opened fire = on=20 the governor, urging him to get off the dime and stop blaming the GOP for t= he=20 power crunch.=20 Meanwhile, grumbling among the party faithful was rampant -- the result of= =20 his failure to cultivate relations with Democratic legislators and grassroo= ts=20 activists alike, some said.=20 So, in the semidarkened Anaheim arena where a Stage 2 alert was in effect,= =20 the Demo buzz turned to what might happen in the event the governor's polls= =20 tank, the lights continue to flicker -- and the pressure is on to throw him= =20 over the side and save themselves.=20 It's all just talk -- but here are some of the names being floated as=20 possible opponents:=20 -- State Treasurer Phil Angelides: Angelides, a strong supporter of state= =20 acquisition of power utilities, got national media attention last month whe= n=20 he announced his proposal to fix the energy crisis -- including the creatio= n=20 of a state public power authority to provide new generating plants. He talk= ed=20 tough, and won an enthusiastic response at the convention, when he warned:= =20 "Out-of-state generators: If you do not take your foot off our throats . . = .=20 you may leave us no option but to (take) your power plants."=20 A successful developer, Angelides is one of the few Democrats who may not b= e=20 intimidated by Davis' $26 million war chest. "If he's invested wisely in th= e=20 past few years, that'd be chump change," said one insider.=20 -- State Controller Kathleen Connell: Connell blasted Davis last weekend,= =20 telling The Chronicle that "the emperor has no clothes" on the energy crisi= s=20 and that voters will soon tire of him putting blame on former Gov. Pete=20 Wilson.=20 The governor's people say the talk was born of desperation: She faces term= =20 limits as controller and is lagging in the polls in her race for Los Angele= s=20 mayor.=20 -- State Sen. Don Perata: Yes, a real longshot, some delegates said, but th= e=20 politically hungry and talkative East Bay pol has been offering tough=20 assessments of Davis' performance on energy recently. He'd have a lot of wo= rk=20 in getting more name ID statewide, but Perata is a master at corralling fre= e=20 media. Lately, he's been on the tube, morning and night, far more than Davi= s,=20 with proposals on energy and education -- two of the governor's favorite=20 topics.=20 In addition to the governor's race, candidates are maneuvering for so- call= ed=20 "down ballot" stateside contests next year.=20 No widely known Democrat is expected to challenge Lt. Gov. Cruz Bustamante = or=20 Attorney General Bill Lockyer for their current spots.=20 But term limits will be putting plenty of politicians out of work, and the= =20 Democrats' sweep of statewide offices in 1998 has left few open spots for t= he=20 ambitious.=20 Some of the Democratic primary races shaping up:=20 -- Secretary of state: March Fong Eu, who held the job from 1974 to 1994,= =20 before term limits, has announced she's running again. John Garamendi, the= =20 state's first elected insurance commissioner and a former longtime=20 legislator, is in, as is Michela Alioto, who lost to incumbent Republican= =20 Bill Jones four years ago. San Francisco Assemblyman Kevin Shelley also is= =20 considering a run.=20 -- Insurance commissioner: Judge Harry Low has not yet decided whether he= =20 will try to keep the office he was appointed to last year after Republican= =20 Chuck Quackenbush resigned amid scandal. If he doesn't, word is that Sen.= =20 Jackie Speier, D-Hillsborough, may run.=20 -- State Board of Equalization: San Francisco Assemblywoman Carole Migden,= =20 another victim of term limits, is looking to replace Democrat Johan Klehs i= n=20 a district that would extend from the Oregon border to Santa Cruz.=20 "I've got $1 million in the bank, and I know the area," said Migden, who=20 expects little competition for the seat. "I'd also be the first woman to=20 serve on the board." Besides, she said, "It will be nice to get into my car= =20 and drive up to Humboldt County to talk to people. It will get me away from= =20 some of the head games in Sacramento."=20 E-mail the authors at cmarinucci@sfchronicle.com and=20 jwildermuth@sfchronicle.com.=20 ,2001 San Francisco Chronicle ? Page?A - 7=20 ---------------------------------------------------------------------------= --- --------------------------------------------------------------- Crisis Takes Toll On State Economy=20 DAVIS'S SPEECH: Possible tax on generators=20 Lynda Gledhill, Greg Lucas, Chronicle Sacramento Bureau Thursday, April 5, 2001=20 ,2001 San Francisco Chronicle=20 URL:=20 http://www.sfgate.com/cgi-bin/article.cgi?file=3D/chronicle/archive/2001/04= /05/M N108119.DTL=20 Sacramento -- On the eve of a statewide television address by Gov. Gray=20 Davis, action by lawmakers stalled on nearly $1.4 billion in state programs= =20 to stimulate energy conservation.=20 Penalizing generators for huge profits they have raked in during California= 's=20 energy crisis is just one point Davis may bring up during tonight's speech.= =20 "I'm of an open mind about that subject," he said after a two-hour meeting= =20 with Assembly Republicans. "I generally don't think making a profit is wron= g,=20 but these profits have been excessive."=20 The governor also is expected to discuss recently approved rate increases,= =20 sweeping conservation efforts and new power plant construction when the=20 cameras come on at 6:05 p.m.=20 The unusual address -- the first by a California governor in nine years --= =20 comes amid growing criticism that Davis has not done enough to solve the=20 deepening crisis as well as his perceived refusal to keep Californians=20 informed.=20 "A lot of what he has been doing and what he's set in motion is not=20 particularly well known to the average person out there," said Garry South,= =20 Davis' chief political adviser. "It's hard in a state like California to=20 project specific bits of information outside the context of a paid media=20 campaign."=20 Others see the address as a strong indicator that Davis realizes he is l
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