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Little Risk To Schwarzenegger Of Blackouts Thanks To Gray Davis

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Sacramento, CA — Despite the heat wave that pushed energy use to an all-time high this week, experts say Governor Schwarzenegger probably does not have to fear the blackouts that ended former Governor Davis´ political career.

And he has Davis to thank for that. The long-term contracts Davis signed, at great political cost, guarantee plentiful energy for the next few years at what now look like good rates.

Davis was recalled from office in 2003 partly because of the energy crisis. Schwarzenegger´s Democratic opponent, state Treasurer Phil Angelides, is warning of “a new energy crisis.”

He says Schwarzenegger has not built enough power plants. But Friday´s situation is different from the energy crisis, because experts say California isn´t likely to run into the shortages that occurred in 2000 and 2001 because of market manipulation.

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