Schwarzenegger proposes abolishing California Power Authority

Washington (Platts)--9Jan2004

California Governor Arnold Schwarzenegger Friday proposed abolishing the state's Consumer Power and Conservation Financing Authority, which was established by his predecessor, Gray Davis, in 2001 to help ensure the state had sufficient generating capacity to avoid a repeat of the 2000-2001 electricity crisis. In his first budget proposal, Schwarzenegger, who replaced Davis in a November recall vote, said CPA failed to achieve "financial self-sufficiency, nor does it appear that it will in the future. Other state energy agencies and private entities already perform similar activities."

Among other things, CPA was charged with developing new conventional and renewable generation and promoting conservation. Secretary of Resources Michael Crisman said no specific end date for the CPA has been decided upon, but added money the agency borrowed from the state runs out in September. Schwarzenegger early in his campaign said he would like to disband the agency, arguing that it threatened private investment in power plants in the state.