Newsweek Letter from California: ‘Hell No, We Won’t Pay’

The black and white and gray of the state’s energy crisis By Karen Breslau NEWSWEEK WEB EXCLUSIVE March 30 — Californians are a tolerant lot. We accept earthquakes, fires, floods and dot-coms crashing to earth with a fatalistic shrug. For the past few months, we’ve endured rolling blackouts and absorbed conflicting theories on California’s impenetrable energy mess with the same aplomb. BUT WHEN THE PUBLIC UTILITIES COMMISSION approved a staggering 40 percent rate increase for most consumers on Tuesday, the mellow mood turned, well, electric. The commission said it had no choice if California’s utilities were to avoid bankruptcy. Protesters screaming “Hell, no, we won’t pay” disrupted the meeting and had to be dragged out by deputies. That same day, California’s highest ranking Republican, Secretary of State Bill Jones, announced he would challenge Democratic Gov. Gray Davis in next year’s election, saying Davis “has to be held accountable” for the energy fiasco.

What could be next? Angry citizens burning their electricity bills on the doorstep of Pacific Gas & Electric? Actually, that’s exactly what happened Thursday. While PG&E workers clustered in the lobby to stare at the sidewalk spectacle, the lunchtime crowd in San Francisco’s financial district reacted sympathetically—clapping and honking as electric bills went up in flames. Can Gray Davis prevail in next year's gubernatorial elections?

Could any of this nascent discontent signal lights out for Gray Davis? Throughout the crisis, Davis, a centrist Democrat often mentioned as a potential presidential contender in 2004, has positioned himself as a consumer champion, angrily blasting “out-of-state speculators” who sell power to California’s utilities, often at grossly inflated prices. Texas, the home of many energy exporters, has practically become a dirty word in San Francisco. And Davis has worked hard to create a common bond with his shivering, squinting statesmen. He talks about how cold and dark it is in the governor’s residence and tells funny stories about having to sleep in a sweat suit. He makes sure to remind voters at every opportunity that California’s botched deregulation scheme, passed in 1996, was actually the work of his Republican predecessor, another one-time presidential hopeful, Pete Wilson.

“Republicans created this mess,” says Garry South, Davis’s chief political adviser. “Now they’re trying to run on it. Go figure.” After vigorously opposing rate increases, Davis last week said that if price hikes were “absolutely necessary for the good of the state” he would reluctantly support an increase and “do my duty to convince Californians of its necessity.”

Until now, the us-against-them approach has worked. Davis’s approval ratings have held steady (people seem to actually like his Churchill-during-the-blitz number), and polls show that voters are still more likely to blame “speculators” than their own elected officials for California’s deepening mess. But now that Davis has abandoned his central pledge—to shield consumers from a rate increase—public support could quickly evaporate. After vigorously opposing rate increases, Davis last week said that if price hikes were “absolutely necessary for the good of the state” he would reluctantly support an increase and “do my duty to convince Californians of its necessity.”

GOP challenger Bill Jones, a one-time rancher, blames Davis for “procrastinating” by failing to close the gap between soaring wholesale prices and fixed retail prices sooner. The state of California has spent more than $9 billion to help insolvent utilities buy power on the deregulated market, a bill taxpayers will soon face. “Now we have billions and billions in debt,” Jones told NEWSWEEK. “The governor has to be held accountable for those mistakes.” Jones says he plans to present an energy plan of his own soon, but declined to provide any specifics.

And then there’s Arnold. This being California, no political race is worth watching without the presence of a celebrity. Before declaring his candidacy, Jones paid a courtesy call to Arnold Schwarzenegger, who says he is still considering whether to get into the Republican race. Both Jones and Davis say they’re ready to take on the movie star. “I wouldn’t want to arm-wrestle him,” says Jones, who would face off against Schwarzenegger in next summer’s primary. “But I would run against him.” And Davis? “If Arnold wants to run California,” says spokesman Steve Maviglio, “then the governor gets to play Terminator.”

-- Anonymous, March 30, 2001

Answers

Californians need to come to grips that they brought this upon themselves. Only by charging high prices are they going to get ANY power and maybe now they will take conseving seriously. I still talk with people who really haven't a clue and just keep sucking up the power. They can afford it and will probably continue using all they want. Most are in S. Ca where they have only recently had blackouts. But I do think that they need to have regularly scheduled black outs and not just hit and miss. If people/companies know when the black out will be, then they can work around it. Bet there will be lots of night shifts this summer. Taz

-- Anonymous, March 31, 2001