August 21, 2025 The Best Source of News, Culture, Lifestyle for Culver City, Mar Vista, Del Rey, Palms and West Los Angeles

State Likely Dodges New Energy Crunch

By Tom Elias

 

 

 

 

 

 

 

The only time California ceded control of its power supply to out-of-state interests, it produced utter disaster: an electricity crunch that saw blackouts and brownouts proliferate in 2000 and 2001, while the fortunes and reputations of every politician involved nosedived.

A very similar, repeat disaster is what Gov. Jerry Brown risked this fall, pushing a last-minute legislative bill aiming to put California’s electric grid under the control of a Western regional agency. The new outfit could have been controlled either by five much smaller states or by the Berkshire Hathaway investment firm of Omaha-based Warren Buffett, which in recent years has bought up many Western power plants, transmission lines and moderate-sized electric utilities.

Not to worry, said Brown and his top aides. This was going to be hunky dory. “The goal of regionalizing the grid,” Brown press secretary Evan Westrup told a reporter, “is to lower consumer costs and greenhouse gas emissions and improve electricity reliability and renewable energy.” It’s been hashed out for years, he said, even though the plan was pushed with minimum legal notice during the 2017 Legislative session’s final week.

In short, the Brown folks said, “Trust us.” It’s a good thing not many Californians did.

The last time Californians took the word of their governor on something like this came in 1998, when then-Gov. Pete Wilson claimed virtually all power customers would save money and enjoy more reliability if electricity were deregulated and out-of-state companies allowed to buy up landmark power plants. These belonged for decades to California utilities like Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric.

The utilities loved deregulation, just like they do Brown’s regional grid idea: Back then, their plants were too old to be counted any longer among capital investments on which their rates and profits are largely based. Instead of nothing, they suddenly could get big money by selling most of these.

So California deregulated, and the new owners of generating plants here began selling some power out of state. It was quickly turned around at highly inflated prices and sent back to California in largely-bogus paper transactions that raised prices and created shortages without moving a single electron.

The same sort of manipulation was possible under the new Brown plan, carried in the Legislature by Democratic Assemblyman Chris Holden of Pasadena.

Look out: This plan will probably be back next year.

The idea is to sell surplus California solar energy out of state, while bringing in wind power from places like Wyoming. The problem with these putative deals is that they most likely can be managed just like deregulation-era deals. Those transactions brought criminal convictions against executives of firms like Enron, the Williams Companies and others which sometimes boasted of “robbing grandma” in California. It’s a mystery why a self-styled student of history like Brown believes history can’t repeat itself. Have folks become less greedy?

Then there are California’s high environmental goals: 50 percent of the state’s power must come from renewable sources by 2030 and even more by 2050. No one knows if the planned new setup could have subverted these goals.

But the U.S. Supreme Court decreed that multi-state regional energy agreements fall under the aegis of the Federal Energy Regulatory Commission. So FERC – completely impotent during the California energy crunch and now controlled by the anti-environmentalist President Trump – could wind up managing California power and muting its emphasis on wind, solar, hydroelectric and geothermal energy, all renewable sources.

Critics worried that Wyoming, America’s No. 1 producer of carbon-rich coal, could get authority over significant amounts of energy used in California. Wyoming Gov. Matt Mead made it clear last year that he’s not concerned about California priorities.

“Wyoming has a different perspective than California does,” he told a reporter.

The last time California tinkered so significantly with its energy supply, it contributed to the destruction of Wilson’s reputation and helped lead to the recall of ex-Gov. Gray Davis, who proved unable to contend with what he termed “out of state buccaneers” bilking Californians for billions of dollars.

It remains a mystery why Brown risked a repeat, but he did and might again soon, with both him and the rest of California bailed out for now only by very loud protests.

Related Posts

Little C by Crustacean Pop-Up Brings Back Mama An’s Street Food in Beverly Hills

August 21, 2025

August 21, 2025

Fan-Favorite Dishes Return Through Aug. 24, With the Debut of Bánh Xèo Little C by Crustacean has returned this month...

Kids Eat Free at Tender Greens Century City During Back-to-School Nights in August

August 20, 2025

August 20, 2025

Weeknight Promotion Offers Free Kids’ Meals With the Purchase of an Entrée. Families dining at Tender Greens in the Westfield...

Stoa Wine Bar & Market Debuts in Marina del Rey With Old-World Charm and California Ease

August 20, 2025

August 20, 2025

New Westside Spot Blends European Traditions, Seasonal Fare, Philosophy of Slowing Down Blending European tradition with California ease, Stoa Wine...

Two LA Culinary Icons and Friends Reunite for One-Night-Only Dinner at Marelle

August 20, 2025

August 20, 2025

Chefs Team Up With Five-Course Tasting Celebrating California Flavors  Two of Los Angeles’ most celebrated chefs will share the kitchen...

Film Review: Honey Don’t

August 20, 2025

August 20, 2025

Honey Don’t! is a neo-noir with a droll comedic sensibility set in the blazing sun of Bakersfield, California. Margaret Qualley...

Los Angeles City Council Opposes Statewide Density Bill SB 79 in an 8–5 Vote

August 20, 2025

August 20, 2025

Council Rejects Housing Density Plan, Cites Local Control Concerns The Los Angeles City Council voted 8–5 on Monday to oppose...

Friday Night Lights Return: Westside High Schools Kick Off 2025 Football Season

August 19, 2025

August 19, 2025

University, Brentwood, and Beverly Hills All Open Their Non-League Schedules High school football returns to the Westside this week as...

Heat Wave to Hit L.A. as Fire Risk, Possible Thunderstorms, and High Temps Loom

August 19, 2025

August 19, 2025

Governor Newsom Pre-Deploys Crews Ahead of Dangerous Heat and Fire Weather  Dangerous heat is expected to grip Southern California starting...

‘Ketamine Queen’ Pleads Guilty and Admits Role in Matthew Perry’s Death

August 19, 2025

August 19, 2025

Prosecutors Say She Supplied Ketamine Through Perry’s Assistant Facing five federal counts tied to Matthew Perry’s 2023 overdose, North Hollywood...

Culver City’s Fiesta La Ballona Returns This Weekend With Food, Music, and Rides

August 19, 2025

August 19, 2025

Community Festival With Live Entertainment, Food Trucks, Rides, and a Dive-in Movie. Culver City’s signature summer celebration, Fiesta La Ballona,...

HelloFresh to Pay $7.5M in Subscription Renewal Case Filed by CART Prosecutors

August 18, 2025

August 18, 2025

Meal-Kit Giant Settles Lawsuit Over Automatic Plan Payments Without Proper Consent HelloFresh has agreed to pay roughly $7.5 million to...

Dan Tana, Founder of Hollywood’s Iconic Celebrity Eatery, Dies at 90

August 18, 2025

August 18, 2025

West Hollywood’s Iconic Red-Sauce Spot Loses Its Former Owner Dan Tana, the actor-turned-restaurateur who created one of Hollywood’s most enduring...

“Off/The Clock” Returns: A Bold Four-Course Dining Experience by Chef Diego Argoti

August 18, 2025

August 18, 2025

An Audacious Four-Course Menu Only at Neuehouse Hollywood. NeueHouse Hollywood will host a one-night culinary showcase on Wednesday, August 20...

Spelling Manor Sells for $110M, July’s Priciest U.S. Home Deal is in Los Angeles

August 18, 2025

August 18, 2025

Holmby Hills Estate Once Owned by Aaron Spelling Tops Redfin’s Monthly List The former estate of television producer Aaron Spelling...

Culver City NFL Media Campus Site Could Become 500-Unit Housing and Retail Complex

August 18, 2025

August 18, 2025

Hudson Pacific’s $169M Plan Adds Apartments, Shops, and Public Plaza Hudson Pacific Properties has unveiled plans to transform the former...