Bush: Action to fight power crisis on way

This story appeared in the Antelope Valley Press January 30, 2001

By H. JOSEF HEBERT
Associated Press Writer

WASHINGTON - President George W. Bush promised Monday to "act boldly and swiftly" to address the nation's energy problems and directed Vice President Dick Cheney to head a task force to develop an energy strategy.

Concerned that California's power crisis could spread into other states, Bush said he wanted a plan to address both short- and long-term energy problems. He gave no clear indication of shortterm policies he might be considering.

"We're very aware ... that the situation in California is beginning to affect neighboring states," Bush said after a meeting with Cheney and Cabinet members.

Western governors are to confer this Friday in Portland, Ore., at a meeting that also will be attended by Energy Secretary Spencer Abraham.

These governors - both Democrats and Republicans - have expressed concerns about soaring energy costs and potential shortages this spring and summer.

"They're deeply concerned about the situation spreading beyond California and so are we," Bush said.

Last week, the Bonneville Power Authority, which has provided cheap electricity for decades to its Northwest customers, said it is looking at a 60% increase in rates over the next five years because of the ripple effect from California's problems.

Bush said the task force will address both short-term problems of soaring electricity and natural gas prices and longer-term energy supply problems, focusing on producing more domestic oil and gas and building more electric power plants.

These problems "will be confronting our country for a while unless we're willing to act boldly and swiftly, which we will do," the president said.

But Bush and Cheney reiterated that California's immediate energy woes are for the state to fix. Bush said he was encouraged that the state was making progress in correcting its attempt to deregulate power markets.

In recent days the California Legislature and Gov. Gray Davis reached agreement on a tentative outline of a plan to keep two financially strapped utilities from bankruptcy. But the state continues to be threatened daily by rolling blackouts, and consumers - promised lower electricity prices by deregulation - are now bracing for years of high prices.

California's energy crunch and the worries that it will spread have provided momentum for Bush, a former oil man, to press his argument that the nation for too long has neglected energy production.

Some California officials are angry over the president's largely hands-off response to their immediate crisis.

Bush is using the state's energy problems as "a subterfuge and ruse" to gain political support for drilling in the Arctic National Wildlife Refuge, said state legislator Fred Keeley on Monday. Keeley, a Democrat who has been involved in trying to craft a state solution to the energy problem, opposes drilling in the refuge in northeastern Alaska.

Press secretary Ari Fleischer said the focus at Monday's White House meeting was the national energy picture, but he added, "You can't talk about a national energy policy without also talking about California." Still, he said there were no new developments on possibly helping California.

"It's becoming very clear to the country that demand is outstripping supply, that there are more users of electricity and natural gas than there are new units being found," said Bush, focusing on the national picture. "And we've got to do something about that in the country."

The long-term issue is "How do we find more energy supplies," Bush replied when asked by a reporter about environmentalists' opposition to drilling in the Arctic refuge, commonly known as ANWR. "A good place to look is going to be ANWR."

Senate Republicans are expected, possibly next week, to introduce a broad package of energy legislation including approval for oil and gas development in the Alaska refuge. Some opponents said such a provision could be a "poison pill" that could stall other badly needed energy measures.

An early draft of the legislation being circulated on Capitol Hill includes provisions aimed at boosting domestic oil and gas production, streamlining licensing of power plants and construction of power lines and natural gas pipelines, and providing incentives for conservation programs.

While California's problems and spreading anxiety about energy elsewhere have prompted renewed focus on the issue in Congress, a final bill likely will take months to complete, given the complexity of the issues involved.