*  from CNN.com today


Many in CA fear high bills more than blackouts
SAN DIEGO, California (AP) -- Ray Marquez wonders whether he'll have to cut 
back on food or gas in order to pay his electricity bill.

The 34-year-old Orange County maintenance man usually pays $80 a month for 
power during summer months. Now, he's trying to figure out how to pay an 
electricity bill that could push $130 come June 1.

"Since I got married and had children, you know, I've been dealing with 
balancing bills," he said Wednesday. "But if I now have to pay more for 
electricity, I'm not going to have money for gas or food for the kids."

As Californians coped with rolling blackouts that darkened thousands of 
businesses and homes Monday and Tuesday, many struggled with an even bigger 
worry: how to pay for soaring energy costs.

In March, the state Public Utilities Commission approved the biggest rate 
increase in California history, up to 46 percent for customers of Southern 
California Edison and Pacific Gas & Electric. Those rate hikes start hitting 
customers in next month's bill.

Gailen Kyle, who raises alfalfa on 1,600 acres in the Mojave Desert, says a 
40 percent increase would put his farm out of business.

"It would end us," the third-generation farmer said. "Everybody here that 
farms alfalfa would be out of business."

Kyle, 46, said he has to pump water nearly around the clock from wells 
drilled 310 feet below his farm near Lancaster. A small increase in the price 
of energy a few months ago added $80,000 to the $400,000 annual bill he was 
already paying.

To save money, Kyle agreed to become an "interruptible" customer, meaning he 
voluntarily allows his power to be shut off during statewide electricity 
shortages in exchange for reduced rates. So far this year, his power has been 
cut 26 times.

Even before the state utilities commission raised rates, residents were 
paying 26 percent more for electricity than the nationwide average, according 
to federal statistics. Only customers in New England, New York, Alaska and 
Hawaii pay more.

One of the problems is that the wholesale cost of electricity has risen 
sharply over the past year but under California's 1996 deregulation law the 
state's largest utilities, PG&E and SoCal Edison, have been prevented from 
passing their costs to customers. In April, PG&E declared bankruptcy.

The West isn't just facing spiraling costs and a shortage of supplies, 
however. Its transmission system is fragmented and overworked and would take 
years to improve, power officials told the region's governors Wednesday.

"There is no immediate solution," said Idaho Gov. Dirk Kempthorne, one of 
four governors participating in a six-hour, round-table meeting with industry 
representatives.

The Western Governors Association was told there is no established method for 
paying for transmission upgrades, and market and regulatory barriers stand in 
the way. It's not even clear where new power lines are most needed.

The group, which included the governors of Utah, Idaho, Montana and Wyoming, 
has given energy experts until July 15 to recommend ways to eliminate 
bottlenecks.

Meanwhile Californians, who've already weathered six days of rolling 
blackouts this year, fear they'll soon be paying more for less service.

The Independent System Operator, which runs the state's power grid, has 
forecast more than 30 days of blackouts this summer due to severe shortages 
of electric supply.

Dee Ann Hendirx, 53, of San Francisco, has stocked up on candles and 
battery-operated clocks.

"I hate to say this but it's getting to be a way of life in California," she 
said.


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