Energy Crisis In California

Essay by PaperNerd ContributorUniversity, Master's September 2001

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My Solution to California's Energy Crisis After hearing Governor Davis's speech and watching the news everyday, I feel that there isn't a really short-term fix for energy problem, but ways to help the problem. I feel that regulators and politicians should not be tempted to fix pricing or turn back from deregulation. Allowing prices to rise can help California in the long run. Even though consumers may not like the idea for the short run. Allowing prices to rise can ensure the long-term viability of the electricity sector in California. I also feel regulators should abolish the mandatory buy-sell requirements under which all transaction have to be done within the power exchange. Instead, power generators and marketers should be able to contract whenever and with whomever they please. This will lead to a more flexible market structure.

Under Governor Davis's new plan he approved $850 million worth of programs to encourage energy conservation.

Under the plan the state is providing $242 million to Utilities to promote conservation. Part of the conservation effort is to encourage consumers to save electricity by paying them to purchase energy efficient appliances, in other words a rebate. Consumers can also receive rebates if they use electricity in the off-peak hours. Governor Davis expects to save 2000 megawatts a day through this conservation method. PG&E has already received the funds from the state to promote conservation, but are waiting for an answer from a Judge with the US Bankruptcy court to receive permission to spend the funds. Once a company is in bankruptcy, they owe other business money. Spending money requires a judge's approval. The approval, expected in a month is going to hurt California because has each day goes by the hotter its going to get. Delays in the conservation could lead to...