As Philosophies Shift, State Could Be Left in the Dark

The lights stayed on all over California one night last week because the political stars were in alignment. But you had to wonder, could this phenomenon ever happen again? After Jan. 20, that is, when Republican George W. Bush becomes the biggest planet in the universe.

This is what I’m talking about:

Gov. Gray Davis, by chance, was in Washington for a meeting of Democratic governors. Sen. Dianne Feinstein invited him over to talk about California’s energy mess--scarce electricity and soaring rates. She also asked U.S. Energy Secretary Bill Richardson to drop by, and he did.

It was the perfect, close-up alignment of three powerful Democrats, made possible by political and philosophical compatibility. And it was fortuitous, given the near-calamitous event that then happened.

As the trio began chatting, Davis was slipped an urgent message from Sacramento. A dozen Western power producers were refusing to deliver electricity, demanding to be paid in cash by two big private utilities, Southern Cal Edison and PG&E;, both billions in debt because of disastrous state deregulation. California was one hour away from rolling blackouts, the first in its history.

Davis got an aide on a speakerphone from Sacramento. The three listened glumly. Feinstein asked Richardson, “Can you do something?”

The energy secretary walked to one of the senator’s offices and began phoning public power companies, including Bonneville in the Northwest. He scraped up electricity, found distribution lines and threatened the private producers--a threat since carried out--with federal intervention. Some backed down and soon resumed sending electricity into California, averting hourlong power outages.

Richardson even warned he might use his authority to set wholesale electricity prices.

“I will not allow them to unjustly profit,” Richardson vowed. “Clearly this market has gone totally bonkers.”

*

*

The drama played out as President-elect Bush, Al Gore and national political leaders were calling for “bipartisanship”--pledging to “reach out” and compromise. But as this real-world tale illustrates, avoiding crises often requires immediate action, not the long, patient negotiation needed for compromise.

And philosophy, rather than partisanship, frequently is at the crux of policy disputes. Policymakers can be bipartisan--not motivated purely by party politics--and still fight fiercely over philosophy. Regardless of all the cheap, easy talk now about “working together to find common ground,” Bush’s impact on California could be significantly different than President Clinton’s because, on many issues, they represent competing interests and attitudes.

What if, for example, the president’s energy secretary last week had been a “free market” advocate who opposed federal intervention? What if he had been Kenneth Lay, a longtime Bush friend who just stepped down as chief executive at Enron, one of those marketers withholding electricity from California? Lay has been rumored to be in line for a cabinet post and is expected to exert major influence over energy policy.

The president appoints all five members of the Federal Energy Regulatory Commission, including the chairman. Gov. Davis already considers the commission too timid in dealing with power producers, whom he denounces as “greedy privateers” and “pirates.” But what if the commission’s chairman were Republican member Curt Hebert Jr., who insists “government should not be mitigating prices.”

More small businesses would be collapsing. And some nights, we’d be sitting by the Christmas tree in the dark.

*

*

Electricity is only one example of how Bush can affect California.

Water--for farms or fish? Bush’s father signed a landmark bill in 1992 allocating more federal water for environmental protection in the Sacramento-San Joaquin Delta. Farmers have fought it ever since. Will Junior continue to defend the act?

Agriculture--pesticides and timber cutting are hot issues. Bush could score points by naming a California centrist as the first female agriculture secretary: Ann Veneman, former state agriculture head and No. 2 in the Bush Senior agriculture department.

“People are looking for centrist problem solvers,” Davis says. “We don’t want ideologues. He’ll make progress in California if he helps us solve our problems.”

Republicans soon will control both branches of the federal government for the first time in 48 years. Democrats still will dominate both branches in Sacramento. Lofty rhetoric about “bipartisanship” and “working together” will become meaningless platitudes if they can’t--at the very least--keep the lights on at a reasonable price.