http://www.washingtonpost.com/wp-srv/aponline/20010525/aponline161715_000.htm

Cheney Says He Can't Help Calif.

By H. Josef Hebert

Associated Press Writer

Friday, May 25, 2001; 4:17 p.m. EDT

WASHINGTON –– Vice President Dick Cheney said Friday nothing more can be done to help solve California's power problems this summer.

He criticized the state for not taking steps sooner to fix a flawed electricity market.

"They knew years ago they had a problem," Cheney said at an energy conference for small business. "They postponed taking action because all of the action was potentially unpleasant."

The vice president's assessment came as Democrats and Republicans in Congress tried to work out a compromise on legislation to bring some relief to California this summer. President Bush plans to visit the state next week and meet with Gov. Gray Davis to discuss the issue.

"The bottom line is there isn't anything that can be done short term to produce more kilowatts this summer," said Cheney. He also rejected price controls, saying they have added to the lack of an adequate power supply.

Davis has sharply criticized the Bush administration for opposing temporary price controls to reduce record high wholesale electricity prices across the West.

Cheney said this week's upheaval in the Senate, with a shift from GOP to Democratic control, "can conceivably have an impact" on getting much of the administration's long-range energy plan approved.

Still, he said he thinks the administration can make progress on the energy package unveiled last week. He acknowledged it would be easier if Republicans had remained in control of the Senate.

Cheney outlined key points of the energy package before several hundred people, many of them entrepreneurs from across the country, at an energy conference sponsored by the U.S. Chamber of Commerce.

Asked by a Californian what the federal government could do to lower power costs that have gone from $7 billion in 1999 in California to $40 billion over the last 12 months, Cheney reiterated his opposition to price controls.

"We think that's a mistake," he said, contending that part of California's energy problem today is the result of price caps put in place a few years ago.

While acknowledging that California's attempt to deregulate its electricity market had bipartisan support, Cheney suggested that Davis, a Democrat, added to the problem by not seeking retail price hikes sooner. "We're now in a situation where the prices have to go up anyway," he said.

California in 1996 allowed its wholesale electricity markets to be deregulated, but continued controls on retail prices, leaving major utilities unable to pass on their high costs. Only recently have state regulators imposed sharp increases, as high as an 80 percent hike on retail prices.

Democrats in both the House and Senate have called for temporary price controls on wholesale electricity charges, arguing the Western energy markets are broken and rife with manipulation by a small number of energy companies, many of which are based in Texas and support the president.

Price controls can be crafted in such a way as not to stifle incentive for supplies, they contend.

A bill before the House Energy and Commerce Committee is aimed at bringing some help to California this summer, its sponsors say. But progress on the bill has bogged down over the price cap issue.

The legislation cleared a subcommittee May 10 on a 17-13 party-line vote without a provision to cap wholesale electricity prices. Democrats and Republicans were trying to work out a compromise on the price cap issue Friday, but prospects for a deal were dim.

© Copyright 2001 The Associated Press

-- (in@energy.news), May 26, 2001

Answers

Cheney Says He Can't Help California

He maybe right, if he values his legs any. ( it was a joke )

-- (pinhe@d.detector), May 26, 2001.

That was no joke, was it? No $$$$ for California now that is not a joke. Think of all those poor people without preps. It is frightening.

-- to california (y2k@is.coming), May 26, 2001.

All these years and no power problems of any degree until now. People that think that this is a Bush Administration conspiracy are kidding themselves. Problems with power production for California, blackouts, and New York and the East Coast to experience similar occurances this summer. Why all this now? Think about it you all and maybe the light bulb will come on and you will see clearly what is happening now and what to expect down the road.

-- Bunker Bob (in preparation@for.y2k+1), May 26, 2001.

The chemtrails are increasing under Bush II. Wake up people.

-- Union Andy (ProLabor@ProPeople.Prochoice), May 27, 2001.

-- (seize this opportunity @ to. scam the people), May 27, 2001.