California Energy War Heats Up

As President Bush wound up a three-day visit to energy-short California on Wednesday, the state's first new hydro-electric power plant in six years hummed to life at a desert reservoir east of Los Angeles.

The Metropolitan Water District of Southern California will run four turbines at the Diamond Valley Lake reservoir churning out energy for 13,000 homes, reports CBS News Correspondent Jerry Bowen. That's a mere trickle in the state's energy war, but the generating plant came online one year ahead of schedule after getting fast-track approval from the Federal Energy Regulatory Commission (FERC).

But it was FERC, along with President Bush, that came under attack from California Gov. Gray Davis for refusing to make an even bigger move – capping wholesale energy prices.

Davis believes the law entitles California to price relief, and the governor said he would sue FERC as the state braces for another round of rate hikes and rolling blackouts this summer.

"I said, 'Mr. President, you understand I have to do everything in my power to seek relief for the people of this state. You would do the same thing if you were in my position.' And he agreed," Davis said after a private meeting with the president.

Perhaps aware of his critics, Mr. Bush said: "It's certainly no time for name-calling. It's time for leadership. It's time to put politics aside and focus on the best interests of the people. This administration is focused on results."

As Davis promised to file suit to force a price lid, labor unions demonstrated in San Francisco outside the FERC offices.

At the same time, there was another demonstration in Los Angeles against a new power plant proposed for an inner-city park.

"We're just shocked and outraged that they would even think about putting a power plant in our community," said community activist Nagee Ali. "Parks are for people not power plants. And this would be an environmental nightmare if this proposed power plant would happen in the Baldwin Hills area."

Part of California's energy nightmare will be eased this weekend when the Diablo Canyon nuclear plant is returned to full power. That means energy for one million homes will come back online after a one-month shutdown for refueling.

During his three days in California, Mr. Bush maintained an unusually busy public schedule highlighting his efforts to conserve electricity at federal installations, eassummer energy costs to the poor and boost the state's long-term resources.

The visit was also intended to help improve the president's West Coast political prospects.

Polls show voters in the nation's most populous state don't think either the president or the governor is doing enough to ease their power woes.

Davis, who was elected in 1998 in a landslide, has watched his job approval rating drop about 20 percentage points since January as he struggled to come to grips with the state's energy shortages and rolling blackouts.

Mr. Bush's job approval rating is still relatively high, though 56 percent of Californians in a recent poll said they disapprove of his handling of the electricity crisis.

The president has avoided the state since losing its 54 electoral votes to Democratic rival Al Gore by 12 percentage points. He visited 29 states to promote his tax and budget plans before finally coming to California.

Senior Republicans, including some Bush advisers, privately concede that Mr. Bush's prospects are dim for winning California in 2004.

Sooner on the horizon are the 2002 congressional elections, where California could tip the balance. Republicans say the president has to improve his standing here to help the GOP maintain control of the House and regain the Senate.

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