California depends on Petroleum for 53% of its electrical generation.
California’s use of electrical power did not grow from June 1999 to June 2000.
However, the wholesale price of energy in California has gone up over ten times (1000%).
Since California law prevents PG&E from raising prices to consumers without permission from the Public Utilities Commission, PG&E paid $8,000,000,000.00 more for wholesale electrical energy than they were allowed to charge their customers. This enormous increase in costs to PG&E were in large part due to increasing prices of oil and natural gas. This is why PG&E has filed for protection under the Federal bankruptcy laws.
As a first response, Governor Gray Davis claimed he could simply step in and run the electrical utilities more efficiently. He promised California voters that the problem would be solved quickly with little long term increase in costs to them. After incurring large amounts of state debt in less than 60 days, he has now realized that his quick fix could bankrupt the State of California within months.
So, like all good politicians, he has switched to scapegoat mode.
The Fossil Fuel Energy Crisis is now and it is real.