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Solving the California Energy Crisis

by Clifford W. Lazar

3/21/2001

Dear Governor Davis,
 
Here are the steps you need to solve the energy crisis.
 
Incentives for Conservation
First, there should be peak load pricing.  People and companies that use electricity during peak periods should pay enough to cover the peak wholesale prices.  Average pricing hurts everyone.
 
Second, electricity service  areas that don't conserve should be the first to be blacked out.  Areas that do conserve should be the last to be blacked out.
 
Public Pressure
The governor should call a meeting of the state's business leaders, including the heads of the chambers of commerce.  He should point out that failure to conserve will hurt growth, jobs, and the economy.
 
The governor should demand conservation plans and goals from each industry.  Those plans should include 30% reductions.  Companies that conserve 30% should get state bear flag logos that they can use in their advertising.  The public should shun those that don't participate.
 
What Could Companies Do?
Unplug every third light.  Raise the thermostat three degrees.  Capture waste heat and waste water.  Pumping water is a major energy consumer.
 
Creating More Power
 The state should set a goal of 20% of our power coming from solar, wind and hydro.  There should be a 1% surcharge on power that would be used to build and subsidize non-polluting power.  The state should assure that these alternative power sources are connected to the grid.
 

The Quick Fix:  Expropriating the Assets

It is clear that Pacific Gas and Electric and Edison can't and aren't doing the job.  We should seek secure alternatives to their monopolies.  We should entertain competitive bids for other companies to provide secure power using the assets of the current utilities and then force the utilities to provide those assets at cost plus a small profit.  Or we should expropriate the assets and put them under the control of a state agency that would lease them to the new power providers.
 
The fact that Edison and PG&E took the money out of state is enough justification.

 

Economics
Solutions for America