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Sac Bee, Wed, 5/30: Bush-Davis standoff: President still refuses price cap= s; governor may sue Sac Bee, Wed, 5/30: PG&E ratepayers battle for voice Sac Bee, Wed, 5/30: Dan Walters: Blame-game politics take center stage in California's energy drama Sac Bee, Wed, 5/30: State loses round in FERC fight: Legislators and Oakla= nd will file an appeal to the full 9th Circuit to force energy price caps Sac Bee, Tues, 5/29: Wattage Watch Determination, conservation pay off in lower energy bills Sac Bee (AP), Tues, 5/29: Appeals court declines to order energy price cap= s LA Times, Wed, 5/30: Bush, Davis Collide Over Energy Policy LA Times, Wed, 5/30: Power Plant Start-Up Comes a Year Early LA Times, Wed, 5/30: Stop Finger-Pointing and Start Negotiating =20 (Commentary) LA Times, Wed, 5/30: Bush Isn't Budging, but He Needs to Turn FERC Around = =20 (Commentary)=20 SF Chron, Wed, 5/30: THE ENERGY CRUNCH=20 Bush, Davis fail to settle dispute=20 President travels to state but won't budge on rate caps SF Chron, Wed, 5/30: Davis' canny use of media manages to upstage Bush SF Chron, Wed, 5/30: Democrats sponsor energy talks/ Bush still at odds wi= th=20 call for=20 federal support of conservation SF Chron (AP), Wed, 5/30: Appeals court declines to order energy price cap= s=20 as California threatens to sue federal government Mercury News, Wed, 5/30: President unmoved by Governor's appeal for relief= =20 (Enron mentioned) Mercury News, Wed, 5/30: Davis-Bush meeting falls short of full truth Mercury News, Wed, 5/30: Farm influence sways state power policy Mercury News, Wed, 5/30: No help (Editorial) OC Register, Wed, 5/30: Bush: No price caps OC Register, Wed, 5/30: A day of spin over substance Individual.com (Businesswire), Wed, 5/30: PG&E Comments On Federal Plan to= =20 Expand Path 15=20 NY Times, Wed, 5/30: Chilly Encounter in California (Editorial) Chicago Tribune, Wed, 5/30: Bush, Gov. Davis sound like Texas, California = on=20 energy=20 SF Chron (AP), Wed,5/30: Bush's visit to California draws protest over ene= rgy SF Chron (AP), Wed, 5/30: P-G-and-E asks court for permission to pay $17.5= =20 million in bonuses SF Chron (AP), Wed, 5/30: Developments in California energy crisis SF Chron, Wed, 5/30: PG&E wants OK to double top executives' pay=20 Court asked to approve $17 million in bonuses SF Chron, Wed, 5/30: Davis threatens to sue regulators to get price limits= =20 =20 ---------------------------------------------------------------------------= --- -------------------------------------------- Bush-Davis standoff: President still refuses price caps; governor may sue By Laura Mecoy Bee Los Angeles Bureau (Published May 30, 2001)=20 LOS ANGELES -- President Bush and Gov. Gray Davis met face to face Tuesday= =20 but didn't see eye to eye on the issue of imposing caps on wholesale=20 electricity prices.=20 The Republican president reiterated his opposition to price caps in a speec= h=20 delivered before the two even met and called for an end to "pointing finger= s"=20 and "blame shifting."=20 The Democratic governor emerged from the 35-minute, closed-door meeting=20 "disappointed" by Bush's opposition to the price caps he sought and vowed t= o=20 sue the Federal Energy Regulatory Commission for relief.=20 "I explained to the president that if he were governor he, like I, would be= =20 doing everything in his power to fight for the 34 million people in=20 California who are getting a raw deal," Davis said.=20 The standoff was expected. But the meeting drew extraordinary attention,=20 because Bush and Davis are considered potential rivals for the presidency i= n=20 2004 and because much is at stake for both of them.=20 Bush has come under fire for being indifferent to California's energy woes,= =20 and Davis' poll standings plummeted as electricity bills rose.=20 With Davis sitting just two seats away, Bush told the Los Angeles World=20 Affairs Council that conservation and increasing supply are the solution to= =20 California's energy problems -- rather than price caps.=20 "Price caps do nothing to reduce demand," he said. "And they do nothing to= =20 increase supply."=20 Bush said price caps may sound appealing to those struggling to pay expensi= ve=20 electricity bills but warned that they would lead to more serious shortages= =20 and higher prices.=20 Three protesters rose from the audience to wave signs and shout support for= =20 price caps. But Bush forged ahead.=20 He graciously welcomed Davis, then subtly attacked the governor for his=20 recent criticism of Bush's energy plan.=20 "For too long, too often, too many have wasted energy, pointing fingers and= =20 laying blame," the president said. "Energy is a problem that requires actio= n=20 -- not politics, not excuses, but action. Blame shifting is not action. It'= s=20 a distraction."=20 Davis said he doesn't blame Bush for the state's energy woes. But he said t= he=20 president is "uniquely situated to bring us price relief."=20 He said he will sue FERC to force it to "discharge its legal obligations" b= y=20 imposing price caps or ordering substantial refunds.=20 A three-judge panel of the 9th U.S. Circuit Court of Appeals on Tuesday=20 rejected a similar lawsuit filed on behalf of the Legislature and the city = of=20 Oakland.=20 The panel offered little explanation for its decision. But Davis said the= =20 lawmakers hadn't allowed federal regulators to fully review the case before= =20 taking it to the courts. He said his office filed the paperwork on Friday t= o=20 begin the federal review process.=20 He said Bush did promise his first FERC appointee, Pat Wood, will come to= =20 California to examine why the state pays three times more than New York for= =20 Texas natural gas.=20 This was the president's first trip to California since he lost the state's= =20 54 electoral votes to Democrat Al Gore in November.=20 Democrats have attacked Bush for visiting 29 other states before returning = to=20 California, and some Republicans said his absence could harm GOP House=20 members facing tough re-election campaigns.=20 On Tuesday, Bush campaigned aggressively for his national energy plan, and= =20 the governor tried to match him with his own series of events.=20 The president began his day at Camp Pendleton, highlighting the federal=20 government's energy conservation program. He announced he would seek $150= =20 million more to help low-income Americans pay energy bills this summer.=20 He also touted a Department of Energy plan to stimulate the building of mor= e=20 transmission lines between Northern and Southern California.=20 As he took a helicopter back to Los Angeles, Davis held a news conference= =20 featuring San Diego ratepayers whose bills have risen more than elsewhere i= n=20 the state because they were the first to feel the effects of deregulation.= =20 "The impact is just disastrous," Michael Brunker, Jackie Robinson Family YM= CA=20 director, told reporters.=20 Frank and Gladys Cannon, a retired West Covina couple, also described their= =20 fear of losing the power needed to fuel the oxygen generator Gladys relies = on=20 to breathe because of her emphysema.=20 Outside the hotel where Bush and Davis spoke, about 150 protesters waved=20 signs and chanted slogans, attacking Bush's energy plan and supporting pric= e=20 caps.=20 After the president's speech, a group of California business leaders who me= t=20 privately with Bush voiced support for conservation and opposition to price= =20 caps.=20 Then Davis held his news conference, where he claimed spiraling energy cost= s=20 could trigger a California recession that would "drag down the national=20 economy."=20 Minutes later, Bush's top political aide, Karl Rove, and the state chairman= =20 of Bush's California presidential campaign, Gerald Parsky, held their own= =20 briefing.=20 "The president believes price caps will make California's economy weaker, n= ot=20 stronger," Rove declared.=20 Bush then boarded Air Force One to fly to Fresno for a dinner meeting and a= n=20 appearance today at Sequoia National Park.=20 The Bee's Laura Mecoy can be reached at (310) 546-5860 or lmecoy@sacbee.com= . PG&E ratepayers battle for voice By Claire Cooper Bee Staff Writer (Published May 30, 2001)=20 SAN FRANCISCO -- Saying Pacific Gas and Electric Co.'s customers have=20 billions of dollars in potential claims against the utility, the U.S. trust= ee=20 on Tuesday urged U.S. Bankruptcy Court Judge Dennis Montali to reconsider h= is=20 decision denying them an official voice in bankruptcy proceedings.=20 PG&E failed to meet its "public utility obligation," causing "massive=20 economic losses" that will be passed on to ratepayers to pay for high-price= d=20 electricity, said trustee Linda Ekstrom Stanley, the bankruptcy court's=20 administrator.=20 A hearing was set tentatively for July 5 on Stanley's reconsideration motio= n=20 and a separate one filed by the ratepayers' committee that she appointed Ma= y=20 4 and Montali disbanded two weeks later. Montali said bankruptcy proceeding= s=20 are meant to resolve problems between a debtor and its creditors, not=20 customers.=20 In its motion, the committee said ratepayers also are PG&E creditors, but n= ot=20 the kind who can count on the official committee of creditors for=20 representation. That committee includes financial institutions and energy= =20 companies owed money by PG&E.=20 "If ratepayers are shut out of this case, we fear that they will end up=20 paying an even higher price for the state's energy crisis," said Nettie Hog= e,=20 vice chair of the ratepayers' committee.=20 A spokeswoman for state Attorney General Bill Lockyer said he supports=20 reconsideration. PG&E and the creditors' committee oppose it.=20 The San Francisco-based utility said it would not object to hearing=20 ratepayers "when issues arise where they have standing."=20 The creditors' committee said the appropriate forum for ratepayers is the= =20 Public Utilities Commission or the legislature.=20 The nine-member ratepayers' committee was drawn from organizations=20 representing the utility's residential and business customers. If Montali= =20 recognizes it as an official committee, it will have access to all data and= =20 the right to hire investigators and lawyers at the utility's expense.=20 The Bee's Claire Cooper can be reached at (415) 551-7701 or=20 ccooper@sacbee.com. Dan Walters: Blame-game politics take center stage in California's energy= =20 drama (Published May 30, 2001)=20 The energy crisis that poses such a threat to Californians' pocketbooks,=20 peace of mind and even their lives is a melange of economic, technological= =20 and political factors that interact with one another in ways that defy=20 prediction or sometimes even comprehension.=20 Nevertheless, the politicians who purport to manage the crisis and=20 journalists tend to treat it as a serial situation, rather than an=20 ever-mutating composite. At one moment, everyone focuses on the threat or= =20 reality of blackouts, but a day or two later, the financial plight of the= =20 private utilities, some new power price conflict or the huge drain on the= =20 state treasury dominates the collective consciousness. It stems, one=20 suspects, from the fundamental nature of politicians and journalists.=20 This week, while other, and perhaps more important, aspects of the crisis g= et=20 short shrift, those involved in framing the situation are preoccupied with= =20 just one matter: the political face-off between Gov. Gray Davis and Preside= nt=20 Bush over whether the Bush-controlled Federal Energy Regulatory Commission= =20 should impose some form of wholesale power price relief.=20 The Republican president paid his first visit to the state and, after some= =20 negotiations over protocol, agreed to a brief personal meeting with the=20 Democratic governor, who has been stopping just short of accusing Bush of= =20 resisting price caps so that his pals in Texas energy companies can line=20 their pockets. Other Democrats have been more explicit in that allegation -= -=20 in ads attacking Republican members of Congress in the state, for example.= =20 It was very evident in advance that Bush would reject price controls. His= =20 aides had made that clear in pre-visit discussions with reporters, and in t= wo=20 public appearances before sitting down with Davis in Los Angeles, Bush said= =20 it again.=20 Bush told one Los Angeles audience -- with Davis sitting nearby -- that=20 "price caps do nothing to reduce demand, and they do nothing to increase=20 supply," adding that in the long run, price controls create "more serious= =20 shortages and, therefore, even higher prices."=20 Davis was, of course, undeterred in his quest for price caps that, if=20 implemented, would remove some of the pressure on him to come up with enoug= h=20 money to pay California's soaring power bills. While eschewing any overtly= =20 partisan rhetoric and carefully thanking Bush for meeting with him and taki= ng=20 some steps to relieve California's energy woes, Davis said they have "a=20 fundamental disagreement over whether California is entitled to price relie= f=20 ... as a matter of law."=20 Davis and other California political leaders contend that FERC has shirked= =20 its responsibility to intercede in dysfunctional energy markets, and Davis= =20 said he would sue the agency to force it to act, even though a federal=20 appellate court panel earlier Tuesday tossed out as premature one suit file= d=20 by state legislative leaders.=20 The debate over whether FERC is legally obligated to intercede, or whether = a=20 price cap would relieve California's energy problems, will thus continue, b= ut=20 unless the agency is prepared to defy the White House or the courts order i= t=20 to act, federal price controls are unlikely to be imposed anytime soon, if= =20 ever. All of Tuesday's tightly choreographed private and public moves,=20 therefore, probably will have no effect on the crisis itself, which continu= es=20 to worsen by the minute as summer's heat and the prospect of soaring power= =20 demand draws closer.=20 It was simply politics -- Bush making sympathetic noises to a state he lost= =20 by a million votes last year but refusing to intercede directly, and Davis= =20 trying to shift the political onus for the crisis that has already driven h= is=20 approval ratings down markedly and threatens his re-election.=20 "Blame-shifting is not action," Bush told one audience Tuesday in a pointed= =20 reference to Davis' anti-Bush and anti-Texas rhetoric of the past few weeks= .=20 "It is distraction." But Bush aides are also busily pointing the finger of= =20 blame at Davis for not acting more aggressively when the crisis first began= =20 to appear a year ago. Vice President Dick Cheney recently labeled Davis'=20 actions, particularly the heavy state purchases of power, as "harebrained."= =20 The Bee's Dan Walters can be reached at (916) 321-1195 or dwalters@sacbee.c= om . State loses round in FERC fight: Legislators and Oakland will file an appea= l=20 to the full 9th Circuit to force energy price caps. By Emily Bazar Bee Capitol Bureau (Published May 30, 2001)=20 Exactly one week after California lawmakers filed suit, an appeals court=20 Tuesday declined to force federal regulators to cap the price of wholesale= =20 energy.=20 With scant explanation, a three-judge panel of the 9th U.S. Circuit Court o= f=20 Appeals rejected the lawsuit that was filed on behalf of the Legislature an= d=20 the city of Oakland last week, saying: "Petitioners have not demonstrated= =20 that this case warrants the intervention of this court."=20 Throughout the energy crisis, state leaders have complained that the Federa= l=20 Energy Regulatory Commission has shirked its duty under the Federal Power A= ct=20 to set "just and reasonable" wholesale electricity prices.=20 In their lawsuit, Assembly Speaker Robert Hertzberg and Senate President Pr= o=20 Tem John Burton -- both Democrats -- asked the court to order FERC to impos= e=20 price caps and to provide refunds for past purchases. Calling the situation= =20 an emergency, they requested a hearing within 21 days.=20 Attorney Joseph Cotchett, who represents the Legislature in the case, said= =20 the judges -- Alex Kozinski, Ferdinand Fernandez and Kim Wardlaw, all of=20 Pasadena -- weren't convinced the matter was pressing.=20 "I find it very difficult to understand how this is not an emergency based= =20 upon the crisis we're presently facing in California," Cotchett said.=20 "Obviously, this is a matter of great urgency and we're going to have to ta= ke=20 the longer route of filing a formal petition."=20 Cotchett said he plans to file an appeal by Friday, and hopes to convince t= he=20 full panel of 9th Circuit judges that the situation qualifies as an=20 emergency.=20 Hertzberg said he will continue to press FERC to limit what power companies= =20 can charge for electricity. On Tuesday, he petitioned FERC to reconsider it= s=20 month-old plan to limit prices during emergencies.=20 Hertzberg said the plan, which went into effect Tuesday, is riddled with=20 legal errors and could lead to higher rather than lower prices, and called = on=20 the federal panel to impose stricter price controls.=20 "We have an obligation to do everything humanly possible that we can," said= =20 Hertzberg, of Sherman Oaks. "This is not about anything less than a=20 dysfunctional market, period."=20 The Bee's Emily Bazar can be reached at (916) 326-5540 or ebazar@sacbee.com= . Wattage watch=20 Determination, conservation pay off in lower energy bills By David E. Graham=20 UNION-TRIBUNE STAFF WRITER=20 May 29, 2001=20 For Dan Russell, incandescent light bulbs with their century-old design are= a=20 thing of memory. In their place in his Middletown home are those=20 pigtail-shaped fluorescent bulbs.=20 The retired San Diego firefighter washes clothes by giving them a good=20 scrubbing by hand in a plastic bucket with cold water and soap. A line in t= he=20 back yard holds clothes for air drying, a scene more familiar in photograph= s=20 from the Great Depression.=20 His refrigerator is new, but only because it is many times more=20 energy-efficient than the 17-year-old model he had before.=20 And his bill for the 143 kilowatt-hours of power he used in his=20 1,900-square-foot home last month was $18.33.=20 "Saving energy is my hobby," Russell, 58, said recently after he had climbe= d=20 down from his attic, where he had been adding insulation to conserve furthe= r.=20 Russell is among those San Diegans who, confronting soaring electrical rate= s=20 and diminished statewide energy supplies, have taken the call to conservati= on=20 to heart. Like other super conservers, he has scoured over the way he uses= =20 electricity in his house and has cut back. Then, he trimmed some more.=20 Russell's electrical usage last month was down almost to half the 280=20 kilowatt-hours he had used a year earlier, and he is looking forward to the= =20 rebate Gov. Gray Davis is offering San Diego County residents this summer.= =20 Residential customers who use an average of at least 15 percent less energy= =20 from June through September than they did those same four months last year= =20 qualify for a 20 percent rebate on those four bills.=20 The governor is hoping such reductions could go "a long way" toward reducin= g=20 projected blackouts during peak demand periods this summer, said Davis=20 spokesman Roger Salazar.=20 Energy super-savers say a combination of changes are key to reducing energy= =20 usage, but the essence of conservation involves using only what is genuinel= y=20 needed, finding more efficient appliances and developing alternate ways of= =20 doing some tasks -- such as hand-washing clothes or dishes.=20 Seeing the worsening energy crisis, Denice and Jeremy Riddle of El Cajon an= d=20 their two daughters became super cutters, reducing their consumption by=20 two-thirds after they received a February bill for $208 on 976=20 kilowatt-hours.=20 "We had a family meeting," Denice Riddle said. "We're not going to pay that= =20 anymore."=20 The Riddles have installed motion sensors in their 1,200-square-foot home s= o=20 that lights remain on only when they or their daughters, 9 and 4, are in a= =20 room. The children no longer wear different outfits throughout the day, and= =20 clean laundry dries outside on a line with only a couple minutes in the dry= er=20 to add softness.=20 They wash dishes by hand. The dishwasher is going to be removed to make spa= ce=20 for more cabinets.=20 "I know what we're doing is working," she said.=20 Her last bill was $110 for 532 kilowatt-hours of power, a significant=20 reduction. That amount is close to the 500 kilowatt-hours that SDG&E=20 considers the average monthly usage for residential customers. And the=20 Riddles are not finished.=20 The Riddles added a small bank of solar panels that directly power their=20 freezer, a security measure during blackouts. A Jacuzzi still takes some=20 power, as does a swimming pool pump. Yet the Riddles say they plan to add= =20 more solar to provide even more of the home's power.=20 "We're going to have a $5 electricity bill, eventually," Denice Riddle said= .=20 While rigorous, neither Russell nor the Riddle family is fanatical in their= =20 pursuit. They go about most typical activities of personal and home=20 maintenance in Southern California life. It is just that they do it with a= =20 stingy discipline.=20 "It can be done," Russell said.=20 He was filled with excitement last week when on a trip to Olympia, Wash., h= e=20 bought a more energy-efficient television that he calculates will save seve= n=20 more kilowatt hours a month. He hopes that amount will help offset what he= =20 figures his wife "wastes" each month by switching on lights he considers=20 unnecessary.=20 Russell also benefits by having some appliances that burn natural gas. His= =20 combined electrical and gas energy bill last month was $33.47.=20 Russell has so immersed himself in the conservation pursuit that -- as he= =20 goes about his life -- he lobbies managers of hotels, government offices an= d=20 businesses to conserve what he considers waste.=20 He sent a visiting friend home to Idaho with a compact fluorescent bulb, th= e=20 new type with the distinctively curled, pigtailed tube, so the friend could= =20 start conservation practices there.=20 There is another incentive for energy super-savers, too. People who use no= =20 more than 130 percent of the monthly baseline electricity allowance, the=20 amount considered a household minimum, can avoid any new rate increases.=20 A San Diego Gas & Electric spokesman said most county residents typically= =20 have a baseline in summer of 298 kilowatt hours, if their households=20 utilities are all electric, and 130 percent of that would be about 387. For= =20 households that also use natural gas, the baseline is typically 252 kilowat= t=20 hours, and 130 percent of that is about 327 kilowatt hours.=20 In mountain and desert areas, the baseline amounts are significantly higher= .=20 Russell has carried his energy hobby into a family competition with=20 brother-in-law David Rock, who lives in an El Cajon apartment with his=20 21-year-old daughter and 19-year-old son. Rock managed to scrape by last=20 month on 258 kilowatt-hours of energy for $33.17.=20 He is looking forward to qualifying for the governor's 20 percent payment= =20 rebate this summer.=20 The family doesn't watch much television and uses the computer sparingly,= =20 mostly for homework, he said. They are stingy with lighting, do not use a= =20 dishwasher and wash clothes in a bank of shared machines at the apartment= =20 complex.=20 Rock and Russell both fear that summer's heat may corrode their best=20 conservation intentions.=20 "August and September will be a challenge," even the flinty Russell said.= =20 Rock will use a ceiling fan and set the thermostat at a "comfortable" 80=20 degrees, he said. Russell also uses a ceiling fan and blinds to cool the=20 house while avoiding air conditioning.=20 Still, Rock is quick to add that conservation has its limits: "I'm not goin= g=20 to do my laundry in a bucket."=20 Abraham blames transmission bottlenecks for blackouts, prices=20 By Jim Fitzgerald ASSOCIATED PRESS=20 May 29, 2001=20 YONKERS, N.Y. =01) Blackouts in California and high energy prices in=20 metropolitan New York are both due to transmission bottlenecks rather than= =20 short supply, Energy Secretary Spencer Abraham said Tuesday.=20 "If we remove transmission constraints across the country like those in=20 California and those present here in New York, the result would be lower=20 prices and improved reliability," Abraham said.=20 Speaking at a Consolidated Edison substation in Yonkers that routes power= =20 south to New York City, Abraham said, "This is a superb facility, but we ne= ed=20 more like it." He said "incentive rates" should be offered to spur the=20 construction of transmission infrastructure.=20 Currently, he said, "It's impossible to ship electricity from the East Coas= t=20 to the West Coast. Many countries have national grids. America does not."= =20 Abraham's appearance was part of a tour promoting President Bush's national= =20 energy policy. Bush was in Los Angeles, announcing an aid package for=20 low-income Californians caught in the energy squeeze.=20 Suggesting that blackouts are likely again this summer in California, Abrah= am=20 said most of the past year's blackouts there "are the result of a=20 transmission bottleneck ... that prevents power in Southern California from= =20 moving to northern California."=20 He said that on Monday, he directed the Western Area Power Administration, = a=20 federal electricity utility, "to take the first steps toward building a=20 90-mile transmission line to remove these ... transmission bottlenecks."=20 Abraham said blackouts are not likely in New York this year but warned that= =20 bottlenecks similar to California's keep the power-hungry New York City are= a=20 from receiving supply from power-rich areas to the north and west.=20 "There's an ample supply of energy in this state but transmission constrain= ts=20 and bottlenecks limit the ability to transfer that electricity to places=20 where it's needed," he said.=20 And he said the Bush administration wants to win the power to decide where= =20 new transmission lines should go. Noting that Connecticut had recently=20 rejected a transmission line that would have brought much-needed power from= =20 New England to Long Island, he said, "The transmission grid is the intersta= te=20 highway system for electricity. It should not be a series of local toll=20 roads."=20 Under current law, transmission siting is left to the states. Abraham said= =20 that was because when that system was set up in 1935, "Congress did not=20 perceive the transmission system which would develop =01) one which is not = only=20 interstate but also international."=20 Bill Museler, president of the New York Independent System Operator, which= =20 coordinates utilities' power supplies and needs, agreed with Abraham, sayin= g,=20 constraints on transmission "can not only cause reliability problems but th= ey=20 are also one of the major reasons why prices in southeast New York,=20 particularly New York City, are higher" than upstate or in nearby states.= =20 Appeals court declines to order energy price caps=20 By David Kravets ASSOCIATED PRESS=20 May 29, 2001=20 SAN FRANCISCO =01) A federal appeals court declined Tuesday to order federa= l=20 energy regulators to cap wholesale electricity prices.=20 The decision by a three-judge panel of the 9th U.S. Circuit Court of Appeal= s=20 came hours before California Gov. Gray Davis was to urge President Bush in= =20 Century City to cap wholesale power costs, which have been spiraling out of= =20 control.=20 The panel, in a brief statement, said last week's appeal by state Senate=20 President John Burton and state Assembly Speaker Robert Hertzberg does not= =20 warrant "intervention of this court."=20 The lawmakers, both Democrats, were joined by the city of Oakland in their= =20 appeal to the 9th Circuit.=20 "The citizens of California are suffering immediate irreparable harm as a= =20 result of FERC's abrogation of its duty to establish just and reasonable=20 rates for electricity," they wrote to the 9th Circuit, which has jurisdicti= on=20 over FERC.=20 The lawmakers said California's looming threat of continued blackouts "are = an=20 imminent threat to the health, welfare and safety of every California=20 citizen."=20 The suit came after more than a year of wholesale power prices reaching=20 historically high levels. In December, prices in California reached $200 pe= r=20 megawatt hour =01) and they have skyrocketed to as much as $1,900 per megaw= att=20 hour during peak times since then.=20 The Bush administration ardently opposes price caps and President Bush has= =20 declined Davis' requests to urge FERC to impose strict caps.=20 Vice President Dick Cheney, chief architect of the administration's energy= =20 plan, has said capping prices would not increase energy supplies or reduce= =20 demand.=20 "We get politicians who want to go out and blame somebody and allege there = is=20 some kind of conspiracy ... instead of dealing with the real issues," Chene= y=20 has said.=20 Cheney criticized Davis, a Democrat, for what he called a "harebrained=20 scheme" to use the state's budget surplus to buy power because California's= =20 two largest utilities face enormous financial problems.=20 For the short term, the Bush administration has approved Davis' request to= =20 expedite permits for new power plants and has ordered federal facilities in= =20 California to reduce energy consumption 10 percent this summer.=20 Sacramento and the White House appear locked in a high-voltage war of=20 rhetoric over energy policies. There is broad bipartisan dissatisfaction in= =20 Sacramento with Washington's response to California's energy crisis =01) th= e=20 result of its own 1996 deregulation rules.=20 Last month FERC did order a one-year cap on electricity sold into Californi= a=20 during power emergencies, when power reserves fall below 7 1/2 percent. The= =20 agency did not set a price and also required the state to join a regional= =20 transmission organization, which could limit California's ability to contro= l=20 its own power grid.=20 Davis called the plan a "Trojan horse," and state power regulators dismisse= d=20 the cap as inadequate, saying it would profit power generators at ratepayer= s'=20 expense.=20 In addition, Davis and state lawmakers sharply criticized FERC for=20 considering requiring the state's power grid operator to add a surcharge on= =20 power sales to pay generators the money they are owed by the state's two=20 large financially strapped utilities.=20 The case is Burton v. Federal Energy Regulatory Commission, 01-70812.=20 Bush, Davis Collide Over Energy Policy=20 Politics: At summit with governor, president continues to oppose electricit= y=20 price caps.=20 By JAMES GERSTENZANG and DAN MORAIN, Times Staff Writers=20 President Bush greets Gov. Gray Davis. "We have an agreement to disagree, b= ut=20 it is a big disagreement," Davis said of Bush. CAROLYN COLE / Los Angeles Times ?????President Bush, venturing into California for the first time as=20 president, stood firm Tuesday in his opposition to reining in wholesale=20 electricity prices, prompting Gov. Gray Davis to announce that he likely wi= ll=20 sue federal energy regulators within a month. ?????In their much-anticipated private summit, Bush met with Davis for near= ly=20 40 minutes in what was characterized afterward as a cordial, businesslike= =20 session. Davis said Bush offered little to help with California's energy=20 crisis, while Bush's aides said Davis' prescription would worsen the state'= s=20 woes. ?????"He just listened and said he is against price caps," Davis said. ?????For his part, the president said in a midday speech to the World Affai= rs=20 Council in Century City: "My administration will continue to work to help= =20 California through the difficult months ahead." ?????The president's first full day in California consisted largely of=20 appearances before friendly audiences. The only discord came at the World= =20 Affairs Council luncheon, where three hecklers disrupted his otherwise=20 well-received speech on energy and the economy, and a few dozen protesters= =20 gathered outside the Century City hotel. ?????Davis toned down his harsh rhetoric of recent days, praising Bush for= =20 speeding up the process by which the federal government grants permits to n= ew=20 power plants. ?????The governor said Bush agreed to begin looking into natural gas=20 prices--a step that Davis praised. Natural gas, which fuels virtually all n= ew=20 power plants being built in California and many of the old ones, costs=20 roughly three times more in California than in New York. ?????The big disagreement remains over the wholesale cost of electricity. T= he=20 state spent $7 billion on electricity in 1999. The cost could skyrocket to= =20 $50 billion this year. ?????"We have an agreement to disagree, but it is a big disagreement," Davi= s=20 said. ?????The Davis administration has appealed to the Federal Energy Regulatory= =20 Commission to impose some type of price controls on electricity. Davis said= =20 he expects to sue within a month, if the federal commission turns down the= =20 state's latest petition, which was filed Friday. Also Tuesday, a federal=20 appeals court rejected a lawsuit by state legislative leaders to force=20 Washington energy regulators to cap electricity prices in California. ?????"I'm going to pursue every recourse possible to me," Davis said, addin= g=20 that he also will press his case on behalf of California and other Western= =20 states with the newly Democrat-controlled U.S. Senate. ?????The Bush-Davis meeting was almost twice as long as the 20 minutes=20 allotted on the president's public schedule. On his first visit to the=20 nation's most populous state since taking office four months ago, Bush came= =20 face to face throughout the day with the reality of the energy crisis and i= ts=20 potential for dragging down the economy of California and the nation. ?????'Price Caps Now,' Heckler Tells Bush ?????Bush was thrust into the controversy that the crisis has engendered: A= t=20 the luncheon speech, one woman stood up and shouted, "Price caps now!" and= =20 "Stop the greedy generators!" As she was slowly led out, two other women=20 echoed her cries, including one who stated primly, "Excuse me, Mr. Bush, we= =20 need price caps." ?????Medea Benjamin, a California Green Party candidate for the U.S. Senate= =20 last year, was one of the three women ushered out. ?????Benjamin and 79-year-old Ceil Sorensen were unfurling a banner inside= =20 the hotel when they were ushered out, said Donna J. Warren, a Green Party= =20 candidate for the 32nd Congressional District seat. The women were released= =20 within 30 minutes, Warren said. The president continued his speech, making = no=20 reference to the interruptions. ?????Meanwhile, a group of economists--among them aides to former President= =20 Reagan and to Bush's father--sent Bush a letter opposing price caps,=20 countering another letter from economists delivered by Davis supporting=20 temporary steps to stabilize California's electricity market. ?????The president, sounding defensive after coming under attack in a state= =20 in which he faces wide skepticism about his policies and his poll numbers a= re=20 drooping, said in an apparent slap at Davis: ?????"For too long, too often, too many have wasted energy, pointing finger= s=20 and laying blame. Energy is a problem that requires action, not politics, n= ot=20 excuses but action. Blame shifting is not action, it's a distraction." ?????Bush's day began at dawn in Los Angeles. He flew to Camp Pendleton,=20 where Marines demonstrated their energy conservation efforts. Speaking to a= n=20 assembly of Marines in front of the 1st Marine Division headquarters, Bush= =20 was cheered and greeted with several throaty chants of "hoo-aah" from the= =20 approving leathernecks. ?????After the speech in Los Angeles, he took part in a meeting on energy= =20 efficiency and then met with the governor. At the end of the day, he flew t= o=20 Fresno, for a visit today to Sequoia National Park. ?????Andrew H. Card Jr., Bush's chief of staff, said after the meeting with= =20 Davis: "It was a very, very friendly and constructive conversation." Davis= =20 described the session as cordial and businesslike. ?????Card said that the two found areas in which they agreed to disagree, b= ut=20 that there were more areas of agreement. ?????Card also said Bush told Davis that he had asked Pat Wood, a power=20 utility official in Texas whom he has named to the Federal Energy Regulator= y=20 Commission, to visit with the governor to explore the state's energy proble= ms. ?????The day had the feel of two intersecting political campaigns. ?????Bush tried to show that he cared about California's woes; Davis=20 surrounded himself with "real Californians," including three young children= .=20 The group was handpicked by the governor's aides to illustrate the effect o= f=20 rising electricity bills. ?????"I had hoped [Bush] might have been able to hear the stories directly,= "=20 Davis said before his private meeting with the president. He sat on a couch= =20 on the 19th floor of the Century Plaza, with three young children, and=20 listened to their parents and others discuss their worries about rising bil= ls=20 and fears about blackouts. ?????Linking a thriving economy to a reliable, affordable energy supply, Bu= sh=20 said all his work on energy would be guided by this test: "Will any action= =20 increase supply at fair and reasonable prices? Will it decrease demand in= =20 equitable ways? Anything that meets that test will alleviate the shortage,= =20 and we will move swiftly to adopt it. ?????"Price caps do nothing to reduce demand, and they do nothing to increa= se=20 supply," he said, adding that the Clinton administration also opposed such= =20 restrictions. ?????He said they may sound appealing "at first blush for those struggling = to=20 pay high energy" bills, but they would bring "more serious shortages."=20 Critics of price caps argue that they would make production of energy=20 uneconomical and thus discourage exploration for new sources of oil and gas= . ?????In a nod to concerns that energy companies are taking advantage of the= =20 shortages, Bush said the federal government "takes very seriously our=20 responsibility to make sure that companies are not illegally gouging=20 consumers." ?????Energy Problems Detailed to Media ?????To the surprise of no one in the Davis administration, Bush did not=20 adjust his schedule to listen to Davis' Californians with energy problems. ?????So Davis held a news conference where they could tell their stories,= =20 then appeared with them in interviews with reporters from national televisi= on=20 networks. ?????"I'm surprised [Bush] wouldn't meet with this group, and I'm surprised= =20 he's only giving the governor 20 minutes," said Gladys Cannon, 75, who has= =20 emphysema. "What can you do in 20 minutes, other than say, 'No.' " ?????Cannon and her husband, Frank, told the governor that they are "on the= =20 edge," living on fixed incomes, and said they fear the effects of blackouts= =20 on her respirator. The West Covina woman said she has long been a Davis=20 campaign volunteer. ?????Gabriel and Christine Rodriguez, owners of Chiquita's Mexican Restaura= nt=20 in San Diego, came with their three children, ages 4, 6 and 9, and said the= y=20 can't make charitable donations or fill job openings because they are=20 struggling to pay utility bills that have nearly tripled. Christine Rodrigu= ez=20 works for San Diego City Councilman Scott Peters. ?????Meanwhile, in San Francisco, a three-judge panel of the U.S. 9th Court= =20 of Appeals dismissed an urgent suit by Senate leader John Burton and Assemb= ly=20 Speaker Bob Hertzberg, declining to intervene in the growing=20 Washington-California tussle over the energy crisis. ?????The suit alleged that Californians were suffering "irreparable harm" d= ue=20 to the failure of the Federal Energy Regulatory Commission to fulfill its= =20 duty and establish "just and reasonable" wholesale electricity rates. As a= =20 result, the suit alleged, the health and safety of Californians were being= =20 threatened by frequent power outages. ?????In rejecting the suit, the judges said the petitioners--Burton (D-San= =20 Francisco), Hertzberg (D-Sherman Oaks) and the city of Oakland--"have not= =20 demonstrated that this case warrants the intervention of this court."=20 ?????Burton and Hertzberg are conferring with their attorneys and have not= =20 decided whether to appeal the ruling to the U.S. Supreme Court. ?????Although the Democratic officeholders failed to persuade the court to= =20 force the hand of the federal regulators, a parallel effort to accomplish t= he=20 same goal is still moving forward. ?????The California Assembly has directly petitioned the regulatory=20 commission to reconsider an April 26 order that called for limited price=20 controls in the West during power emergencies this summer. ?????Davis and other state leaders have blasted the order, saying it is ful= l=20 of loopholes and will do little to stop what they consider blatant price=20 gouging by electricity traders. ?????"California still needs real relief, not the smoke screen federal=20 regulators have offered so far," Hertzberg said. "The bottom line is that t= he=20 commission has failed to do its job, which is to protect Californians from= =20 runaway wholesale electricity prices." ---=20 ?????Times political writer Mark Z. Barabak and staff writer Miguel Bustill= o=20 contributed to this story. Copyright 2001 Los Angeles Times=20 Power Plant Start-Up Comes a Year Early=20 Energy: The MWD hydroelectric facility is the state's first new one in six= =20 years, just in time for summer crisis.=20 By TONY PERRY, Times Staff Writer=20 ?????A year earlier than initially planned, the Metropolitan Water District= =20 of Southern California will begin producing electricity today at its mammot= h=20 reservoir near Hemet in Riverside County. ?????Four turbines at MWD's Diamond Valley Lake reservoir will produce abou= t=20 13 megawatts of electricity--enough for about 9,750 homes. ?????The move comes as the state approaches a summer for which energy=20 officials have predicted rolling blackouts. ?????"In this crisis, every kilowatt counts," said Ronald Gastelum, MWD=20 general manager. ?????For anyone looking for a microcosm of what the energy crisis has done = to=20 change California's thinking, the four roaring turbines at Diamond Valley= =20 Lake are a good place to start. ?????For openers, the California Energy Commission says the power plant at= =20 the Hiram J. Wadsworth Pumping Plant is the first new California=20 hydroelectric facility in six years--a period during which demand was=20 increasing and supply remained static. ?????Also, the hydroelectric turbines were not part of the original design = of=20 the $2-billion reservoir. "There was plenty of power in the state," Gastelu= m=20 said. "Hydroelectric was not a priority." ?????But as the state tumbled into energy disarray, the MWD board voted to= =20 retrofit some of the reservoir's pumps to produce electricity. ?????If all 12 pumps are altered to act as power generators--at a cost of= =20 about $4.5 million--the output will be about 40 megawatts, enough for 30,00= 0=20 homes. ?????Opened in March 2000, the Diamond Valley reservoir is scheduled to hol= d=20 800,000 acre-feet of water when full. Energy will be generated by running= =20 water through the turbines before it is sent either to Riverside County=20 agencies or south to its largest customer, the San Diego County Water=20 Authority. ?????The MWD also is considering how to upgrade its transmission lines to= =20 draw more electricity from existing hydroelectric plants at Hoover and Park= er=20 dams on the Colorado River. ?????Furthermore, the MWD is looking for other locations to generate power= =20 along its complex system of aqueducts and canals, and is mulling proposals = to=20 become partners with would-be power plant builders who need water for cooli= ng. ?????The megawatts produced at Diamond Valley will be sold to the state's= =20 Independent System Operator, rather than Southern California Edison Co. or= =20 Pacific Gas & Electric Co.--and that too is a sign of how the energy shorta= ge=20 has changed things in California. ?????The MWD has long-term contracts to provide energy to Edison and PG&E= =20 from some of its 15 other hydroelectric facilities. But those financially= =20 shaky companies now owe MWD about $2 million each, and so the MWD decided t= o=20 sell to the ISO instead. ?????Beyond serving the state, the MWD stands to make money by selling powe= r=20 and increasing its stake in the energy business. It plans to use the profit= s=20 to pay some of its own electricity bill, which has increased by $110 millio= n=20 this year. ?????With a fast-track approval process from the Federal Energy Regulatory= =20 Commission, the four 6,000-horsepower pumps were converted in the past two= =20 months to be ready to produce energy for the peak-usage period of each day= =20 during the summer. ?????"We don't have all the whistles and bells on it," said David Gledhill,= =20 principal engineer and project manager for the MWD. "It is more bare-bones= =20 than our other facilities, but it's operational." Copyright 2001 Los Angeles Times=20 Wednesday, May 30, 2001=20 Stop Finger-Pointing and Start Negotiating=20 By WARREN CHRISTOPHER ?????As a longtime director of Southern California Edison, I am acutely awa= re=20 of the severity and complexity of today's unprecedented energy crisis and t= he=20 fact that there is no easy or pleasant way out of it. Instead of=20 finger-pointing, however, I believe we must focus our attention on how to= =20 extricate ourselves.=20 ?????The most promising approach is legislation that is now pending before= =20 state lawmakers that is modeled on the agreement the state has negotiated= =20 with Edison. I support this approach, not simply because of my association= =20 with Edison, but also because I believe it offers a major step toward an=20 overall solution for everyone involved.=20 ?????The key issue that must be addressed is the precariousness of the=20 state's major utilities. One is in bankruptcy and another, Edison, is in ve= ry=20 shaky financial condition. This cannot help but further affect the service= =20 levels and the cost of power in the state.=20 ?????Throughout last summer, fall and into the winter, Edison purchased pow= er=20 from increasingly high-cost wholesale power markets in order to keep=20 electricity flowing to its customers. The company made no profit for=20 providing that service and, indeed, suffered power-purchase losses between= =20 May 2000 and January 2001 totaling $5.5 billion.=20 ?????Although federal and state law entitle Edison to recover these costs,= =20 California's regulators have not permitted this. But rather than solely=20 pursuing its legal rights in the courts, Edison has decided to focus on=20 negotiating a set of mutual commitments with the state that would address= =20 both the company's need to be restored to financial health and California's= =20 power future.=20 ?????For its part, Edison committed to:=20 ?????* Provide all of its existing power generation capacity, including=20 hydroelectric power, at cost-based (rather than market-based) rates for the= =20 next 10 years, thus helping to stabilize customer rates.=20 ?????* Bring new power supplies to California customers by selling to the= =20 state, also at a cost-based rate, the entire output of Edison's new,=20 unregulated Sunrise power station, which is scheduled to come on line in=20 August.=20 ?????* Take state government out of the power procurement business 19 month= s=20 from now, when Edison is again made financially stable and has issued debt= =20 reimbursement bonds whose cost to consumers would amount to roughly 1/2cent= =20 per kilowatt hour.=20 ?????* Invest not less than $3 billion over the next five years in upgradin= g=20 the Southern California power distribution system, which is essential to=20 ensuring the future reliable delivery of power throughout the system.=20 ?????* Sell its transmission system, or alternatively, make other valuable= =20 commitments to the state.=20 ?????Prompt action is needed from the California Legislature on these=20 proposals. The crisis is having a profound daily impact not just on Edison= =20 but on California's economy as a whole.=20 ?????Just since January, the state has incurred more than $7 billion in pow= er=20 procurement costs, resulting in a sharp reduction in the state's credit=20 rating and millions of dollars of additional interest cost every time the= =20 state has had to borrow.=20 ?????There are also credible reports that, in view of our power situation,= =20 out-of-state businesses are deciding against new or further investments in= =20 California and that California businesses are planning to expand elsewhere.= =20 ?????The alternative to quick action by the Legislature and Gov. Gray Davis= =20 is stark: bankruptcy for Edison. If that happens, the state will suffer=20 another blow to its reputation, and there is a strong likelihood that the= =20 quality of service will begin to deteriorate. The state will also be in the= =20 power procurement business indefinitely, with a continuing drain on state= =20 resources.=20 ?????The proposed agreement between the state of California and Edison may= =20 not be perfect. I can attest, however, that it was the product of prolonged= ,=20 intense and hard-fought negotiation. Neither side got everything it wanted.= =20 ?????But the principles the agreement embodies represent the clearest cours= e=20 to avoid a major utility bankruptcy in Southern California.=20 ?????These principles also provide a structure that might be adaptable to t= he=20 state's two other major utilities.=20 ?????From Edison's perspective, the commitments it is willing to undertake= =20 will seriously constrain the company and limit its profitability for many= =20 years. The executives and directors of Edison have concluded that, as=20 stewards of the company and citizens of California, taking on these burdens= =20 while continuing to provide essential services is the responsible thing to= =20 do.=20 ?????I hope that the Legislature will rise similarly to the occasion.=20 - - - Warren Christopher, Who Was U.s. Secretary of State From 1993-97, Is a=20 Southern California Edison Board Member Copyright 2001 Los Angeles Times=20 Wednesday, May 30, 2001=20 Bush Isn't Budging, but He Needs to Turn FERC Around=20 By MEDEA BENJAMIN ?????George W. Bush has been greeted at every stop on his California trip b= y=20 angry protesters who believe he has refused to take any meaningful steps to= =20 stop the energy crisis engulfing our state. He has come at a time when=20 consumers have been socked with the heftiest electricity rate increases in= =20 state history, rolling blackouts have become routine, our largest utility i= s=20 bankrupt, and the state's budget is being drained by $70 million a day as= =20 California buys wholesale energy at outrageous prices.=20 ?????There is a very simple measure Bush could take that would alleviate th= e=20 crisis overnight. He could tell the Federal Energy Regulatory Commission, o= r=20 FERC, to do its job. FERC's legal mandate is to ensure that wholesale=20 electricity prices are "just and reasonable." But wholesale prices are not= =20 just and reasonable, and they are completely divorced from costs.=20 ?????FERC has been ideologically fixated on the free market while ignoring= =20 the reality that a handful of energy suppliers--most of them from Texas--ar= e=20 manipulating the market to make obscene profits at our expense. During the= =20 last several months, a flood of media exposes has revealed how the generato= rs=20 are turning power plants on and off as much as several times an hour to tak= e=20 advantage of price fluctuation, taking plants offline for "unscheduled=20 maintenance" and simply refusing to sell power to California. State and=20 federal investigators say these companies have deliberately price-gouged=20 consumers by billions of dollars.=20 ?????The result is a massive transfer of wealth from California households = to=20 a handful of energy companies. In the first three months of 2001,=20 Houston-based Dynegy Inc. posted revenues of $14.2 billion, nearly triple t= he=20 $5.3 billion reported in the same period a year ago. Revenues at Enron Corp= .=20 nearly quadrupled from January through March to $50.1 billion, compared to= =20 $13 billion in the first three months of 2000.=20 ?????The profits of such energy companies went up more than 500% between 19= 99=20 and 2000, according to state Senate figures. Compare this to the California= =20 Public Utilities Commission's definition of fair rates when it was regulati= ng=20 utilities: cost plus 10%-12% profit.=20 ?????Does Bush have the power to influence FERC? Of course. Curtis L. Heber= t=20 Jr., who heads the commission, was appointed by Bill Clinton but was elevat= ed=20 to chairman by Bush. FERC is also under the Department of Energy, headed by= =20 Spencer Abraham, a Bush appointee. If Bush wanted FERC to place controls on= =20 wholesale prices through a system of cost-plus pricing, it would happen=20 overnight.=20 ?????Bush's long-term energy policy promotes a continued reliance on=20 polluting fossil fuels and a resurgence of unsafe nuclear energy, while=20 paying only lip service to smart, sustainable solutions like renewable ener= gy=20 and efficiency. Under the president's plan, technologies proven to be dirty= ,=20 dangerous and expensive will get the lion's share of taxpayer subsidies,=20 while the 2002 budget slashes funding for solar research by more than 50%,= =20 with major cuts for biomass, geothermal, hydrogen technology and fuel-cell= =20 research. If the Bush administration were to make sustainable energy source= s=20 a priority, existing technologies--wind, solar and some types of=20 biomass--could solve our long-term energy needs. While such a policy is=20 anathema to oil, coal and utility industry leaders who supported Bush's=20 presidential campaign, it is central to any forward-looking energy strategy= .=20 ?????The sensible responses to the energy crises are clear--price controls = in=20 the immediate future and reliance on renewables in the years to come. If Bu= sh=20 continues his current course of action, we can only conclude that he is mor= e=20 sympathetic to a handful of electricity and gas suppliers than to millions = of=20 Californians.=20 ?????Unless residents of the country's largest state take the effort to mak= e=20 their voices heard, it's likely that Bush will continue to follow the hands= =20 that feed him, and that doesn't make for a healthy diet. It is up to us=20 Californians to let the president know he can't afford to kowtow to special= =20 interests. Hopefully, he'll respond to the demands of the angry Californian= s=20 he is hearing this week.=20 - - - Medea Benjamin Is the Founding Director of Global Exchange, a Corporate=20 Accountability Organization in San Francisco Copyright 2001 Los Angeles Times=20 THE ENERGY CRUNCH=20 Bush, Davis fail to settle dispute=20 President travels to state but won't budge on rate caps=20 Carla Marinucci, Chronicle Political Writer Wednesday, May 30, 2001=20 ,2001 San Francisco Chronicle=20 URL: http://www.sfgate.com/cgi-bin/article.cgi?f=3D/c/a/2001/05/30/MN223796= .DTL=20 Los Angeles -- President Bush and Gov. Gray Davis, who have sparred=20 long-distance for weeks about California's power woes, clashed in person=20 yesterday over their vastly different views on the need for energy price=20 controls.=20 Bush, in a speech before the World Affairs Council in Los Angeles, argued= =20 that California's energy crisis demands "action, not politics, not excuses,= "=20 and he ruled out federal price controls on the wholesale costs of energy,= =20 saying, "We will not take any action that makes California's problems worse= ."=20 Davis, however, argued that California's consumers are getting "a raw deal"= =20 without price limits. He said he will sue the federal government to impose= =20 controls, which he deems essential to fixing the state's energy problems.= =20 Emerging from a 35-minute meeting with Bush -- nearly twice as long as=20 scheduled -- Davis said the session was "informational, businesslike" but "= we=20 still have a fundamental disagreement over whether or not California is=20 entitled to price relief."=20 "I don't think it's a matter of philosophy or ideology. It's a matter of=20 law," Davis said.=20 Federal agencies "made a determination in November, and again Dec. 15, that= =20 the California market was dysfunctional, prices were too high, . . . and we= =20 are entitled to some form of price relief," the governor said.=20 Davis warned that without price controls the state would spend $50 billion = on=20 power, which could send the economy spiraling down and affect the nation.= =20 The meeting, although described by both sides as cordial, highlighted deep= =20 philosophical and political differences between Bush and Davis over the=20 state's energy crunch. Those opposing views have been underscored by=20 increasingly harsh rhetoric between top Bush administration officials,=20 including Vice President Dick Cheney, and the governor and his top aides.= =20 Energy has dominated the California political landscape in a way no one cou= ld=20 have predicted during last fall's campaign. Field Polls released last week= =20 show Californians are disappointed in the performance of both men on the=20 energy front. Rolling blackouts and rising utility bills account in large= =20 part for an 18 percentage point drop in the once-popular Davis' job approva= l=20 rating from January to May, analysts say.=20 Bush's first trip to California as president is intended to counter the=20 governor's repeated criticism that he has not helped the state solve the=20 energy crisis. Both men tried to spin the trip -- and yesterday's personal= =20 meeting -- to gain a measure of public support.=20 Political analyst Sherry Bebitch Jeffe said Bush's visit could help him=20 repair his image in California, where Davis has tied the president to big o= il=20 interests.=20 BULLY PULPIT "For too long, (Bush) has ceded the bully pulpit to the governor," allowing= =20 him to be tied to "oil buddies" in Texas, Jeffe said after the president's= =20 speech in Los Angeles. "Did he sound like an oil guy today? I was looking= =20 around for the tree he was gonna hug."=20 In a 22-minute speech to an audience of several hundred, Davis among them,= =20 Bush said, "for too long -- and too often -- too many have wasted energy=20 pointing fingers and laying blame. . . . Energy is a problem that requires= =20 not excuses, but action. And blame shifting is not action -- it is a=20 distraction."=20 Bush repeated his opposition to price limits, which, he said, "do nothing t= o=20 reduce demand, and they do nothing to increase supply."=20 Davis and other Democrats, including California Sen. Dianne Feinstein, have= =20 for months urged Bush to order price controls. Garry South, Davis' senior= =20 political adviser, charged yesterday that Bush, not the governor, was playi= ng=20 politics with California's future.=20 The president must come to grips with "the notion that adhering to rigid=20 ideology in the face of an existing law, which requires him to act, is not= =20 just some kind of a face off with the governor of California," South said.= =20 "It actually endangers the national economy."=20 'GREEDY ENERGY COMPANIES'=20 Bush's speech, which addressed trade, the economy and tax issues as well as= =20 energy, was interrupted by lengthy heckling from three protesters, includin= g=20 former Green Party U.S. Senate candidate Medea Benjamin. The protesters,=20 yelling "stop the greedy energy companies," and "price caps now," were=20 hustled out, and one was arrested.=20 But the president, to warm applause, pressed on with his talk, saying that= =20 the administration has taken specific steps to assist California, including= =20 working with Davis "to speed the approval of new power plants, expand=20 electricity production, and increase the flow of natural gas into the state= ."=20 Bush also stressed conservation as "an important part of the energy=20 equation." He said his proposed energy plan "encourages renewable sources o= f=20 energy, including "safe and clean nuclear power, wind, solar, biomass."=20 And the president repeated his commitment to uphold the moratorium on=20 offshore oil drilling in California.=20 Bush also said he will take aggressive action to ensure that consumers are= =20 protected against price gougers.=20 "The federal government takes very seriously our responsibility to make sur= e=20 that companies are not illegally gouging consumers," he said. "We will=20 protect consumers against abuses."=20 In Los Angeles, and earlier in the day at Camp Pendleton near San Diego, Bu= sh=20 attempted to dismiss the debate over energy as political posturing.=20 'TIME TO PUT ASIDE POLITICS'=20 "It's time to put aside politics and focus on the best interests of the=20 people," he told several hundred Marines at Camp Pendleton. "This is no tim= e=20 for harsh rhetoric. This is no time for name calling. It is time for=20 leadership. It is time for results."=20 Bush said he will ask Congress to appropriate $150 million for "low-income= =20 energy assistance" in addition to the $300 million for such aid already in= =20 his budget.=20 The president also said he will direct Energy Secretary Spencer Abraham to= =20 smooth the way for permits and easements needed to "unplug the Path 15=20 bottleneck" -- a problem with the transmission grid that restricts the flow= =20 of energy from Southern to Northern California.=20 Before their private meeting, Bush and Davis met in a closed-to-the-press= =20 session with a dozen business leaders, including the heads of Santa Clara's= =20 Intel Corp. and National Semiconductor Corp., to discuss the energy crisis.= =20 "Both the governor and the president seemed fairly inquisitive," said one= =20 participant, John Woolard, chief executive of Alameda software-maker Silico= n=20 Energy Corp. "They wanted to know what was actually realistic to solve the= =20 problems."=20 That 45-minute meeting, also attended by Los Angeles Mayor Richard Riordan,= =20 apparently went more Bush's way than Davis. The business leaders supported= =20 the president's calls for entrepreneurs to help solve California's troubles= ,=20 and no one brought up the topic of price controls.=20 Woolard said Bush and Davis "seemed surprisingly comfortable with one=20 another," although it was Bush who clearly was in charge of the talks.=20 Overall, he said, Bush was "sympathetic to California's problem and wanted = to=20 do whatever he could, within certain constraints."=20 Price limits, Woolard concluded, obviously were one such constraint.=20 Chronicle staff wri
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