World Report: January 19, 2001 Vol.6 No.14

Who Turned Off the Lights?

California has a power problem that's casting a dark shadow across the Golden State. Last week energy officials said electricity resources were running out. They've asked residents to cut electricity use, and many businesses have operated without lights during the day.

Things went from bad to worse when a severe winter storm hit on Thursday. This made it even harder for power companies to produce electricity.

In 1996, California got rid of many government rules for its electricity suppliers. The change was supposed to give people more choices of power companies, better service and lower prices. Instead, power supplies dwindled and costs rose.

Two power companies-Southern California Edison and Pacific Gas and Electric-together serve about 25 million people. Both are spending more money to create electricity, but the law says they can't make customers pay more to make up for the higher costs. Now the companies are $12 billion in debt.

Energy officials want to save Edison and Pacific, and find a way to prevent future shortages. Last weekend Governor Gray Davis met with federal energy officials to search for solutions. Says Davis: "We can see the light at the end of the tunnel."