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Electricity Analysis Says We Are Overloaded

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After having to scrounge for electricity earlier this year, a state analysis says California could be stuck with a costly power surplus over the next decade.

The analysis finds ratepayers could be paying as much as 3.9 billion dollars for the unused electricity.

The reason?

The state earlier this year signed long-term contracts to buy power at high prices in an emergency effort to stabilize the market and keep electricity flowing. But since then, demand has fallen and prices have dropped.

The findings are fueling criticism that Governor Davis´ administration overpaid for energy when it signed the contracts.

Doug Heller of the Foundation for Taxpayer and Consumer Rights calls it the final absurdity of the California energy crisis.

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