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Energy Contracts in Question

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A new study says that the state´s power contracts will impose high electricity rates on Californians for the
next decade because they require the state to purchase too much electricity at too high a price. A coalition of consumer, environmental and renewable energy
group sponsored the study, which urges the state to renegotiate at least eight of its power contracts.

Governor Davis says he would be open to
renegotiate if the power generators wanted to, but critics say that is unlikely. The study singles out a deal made with Sempra Energy, in which the power
company would earn one billion more than the California Energy Commission estimates unregulated power should cost.

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