---------------------- Forwarded by Mike Grigsby/HOU/ECT on 04/05/2001 10:05 
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"mike" <mgrigsby@swbell.net>@sfgate.com> on 04/05/2001 10:12:00 PM
Sent by: <nobody@sfgate.com>
To: "Mike" <mike.grigsby@enron.com>
cc:  
Subject: SF Gate: Text of Gov. Gray Davis' energy speech




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This article was sent to you by someone who found it on SF Gate.
The original article can be found on SFGate.com here:
http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2001/04/05/state2
108EDT0315.DTL
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Thursday, April 5, 2001 (AP)
Text of Gov. Gray Davis' energy speech
The Associated Press


   , , -- (04-05) 18:08 PDT Here is the text of Gov. Gray Davis' televised
speech on energy Thursday, as prepared for delivery:
   "Good evening. I'm speaking to you tonight from Sacramento on the most
difficult issue facing California: our energy crisis.
   "Simply stated, we have two problems: supply is too low and costs are too
high. Both result from the flawed deregulation scheme created in 1996. But
no matter how we got into this mess, you hired me to solve problems. And
that's what I'm doing.
   "The only long-term solution is to build more power plants. We must also
cut back on consumption and stabilize the utilities. But prices won't fall
and supply won't be truly reliable until we generate more power than we
consume.
   "Yet in the 12 years before I took office, not a single major power plant
was built in California. Not one. Since I became governor, we've licensed
12 major power plants. Ten more are in the pipeline. And we're doing this
without weakening our commitment to clean air and clean water.
   "Deregulation required the utilities to sell off many of their power
plants to independent generating companies. The generators are free to
charge whatever they want because they're governed only by federal
regulators who refuse to control wholesale energy prices.
   "This past winter, the prices charged by the generators shot through the
roof, driving the utilities to the brink of bankruptcy.
   "In January, with the feds still refusing to do their job, California
stepped in to purchase the power the utilities could no longer afford to
buy. We didn't take over to save the utilities. We took over to keep the
power on and the economy strong. That's not all:
   -- We also negotiated long-term contracts for electricity at vastly lower
prices.
   -- I used my emergency powers to seize control of low-cost power contracts
the utilities were about to forfeit to the generators.
   -- We began negotiations to buy the utilities' transmission system.
   -- We cut red tape and offered cash incentives to speed up construction of
power plants.
   -- We're launching an $800 million conservation program.
   -- We're moving to establish a public power authority to build more power.
If the private sector fails to build all the plants California needs,
we'll build them ourselves.
   -- And because I share your concern that the generators are ripping us
off, we're using every legal remedy to root out and punish illegal
conduct.
   "We can't fix 12 years of inaction overnight. But we're making real
progress.
   "Now, as you know, I have fought tooth and nail against raising rates.
It's become increasingly clear, however, that with rising natural gas
prices, the feds' failure to control costs, and the state's lack of
supply, that some rate increases are needed to keep our lights on and our
economy strong.
   "But I remain committed to protecting average Californians from massive
rate hikes. So I'm urging the Public Utilities Commission to adopt a plan
that will protect average consumers, reward those who conserve and
motivate the biggest users to cut back.
   "Under my proposal, more than half of you won't pay a penny more. For the
rest, the average increase will be 26 1/2 percent. For many of that group,
rates will rise only about 10 percent. The heaviest users will see their
rates rise 34 1/2 percent on average. That includes business paying their
share. This is in addition to the 9 percent surcharge we've all been
paying since last winter.
   "But all Californians can reduce their bills through conservation.
   "Here's the point: The more you use, the more you pay. The more you
conserve, the more you save. Conservation is our best short-term weapon
against blackouts and price-gouging. By flexing your power, you'll help
secure our energy future.
   "Unlike the PUC, my plan includes funds to restore the utilities to
financial stability -- if they agree to three main conditions:
   "They must provide low-cost regulated power to the state for 10 years.
Agree to sell us their transmission system. And dismiss their lawsuits
seeking to double your electricity rates.
   "My proposal raises rates fairly, assures us of long-term power,
stabilizes the utilities and promotes conservation.
   "Our emphasis on conservation is critical. In order to make it through the
summer, we must cut demand by at least 10 percent.
   "Already we've launched programs to cut back commercial lighting, and
reduce consumption in office buildings, schools and government facilities.
   "Friends, we have a power shortage but we are far from powerless. We are
34 million strong and if each of us does our part, we can minimize
disruptions and get through the summer. We are Californians. We've
withstood earthquakes, floods, fires, and droughts.
   "Yes, this mess is man-made, but with your help and God's blessing, we'll
get through this as well.
   "Thank you and good night."


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Copyright 2001 AP
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