http://www.sfgate.com/cgi-bin/article.cgi?file=/c/a/2003/10/11/MN20927.DTLGov.-elect Arnold Schwarzenegger is preparing a push to deregulate the state's electricity markets -- a move embraced by business leaders and some energy analysts but criticized by many Democrats and consumer advocates as a return to the failed policies that sparked California's energy crisis.
Although the new Republican governor-elect will be consumed at first with tackling the state's budget woes, his advisers say he will push changes next year aimed at lowering energy costs for industry and large power users while encouraging energy firms to build more power plants to help meet rising demand.
The actor-turned-politician made little mention of his plan to reduce state regulation of energy markets during the recall race, devoting his time instead to bashing Gov. Gray Davis for saddling the state with expensive long-term contracts for power. But with many of those contracts set to expire in the next two years, the governor-elect will have to present his solutions or risk facing his own energy crisis.
"We will need more power, and we have to make some serious decisions about how that's going to happen," said Severin Borenstein, director of the University of California Energy Institute. "For the next six months or so, we're in good shape, but if we put it off for a year or a year and a half, then we're going to be under real pressure."
Schwarzenegger's energy strategy is being driven by some of the same members of former Gov. Pete Wilson's team who led the push for energy deregulation in the mid-1990s. The governor-elect, for example, picked for his transition team Jessie Knight, a former Wilson appointee to the Public Utilities Commission and a leading proponent of deregulation.
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