Bush to Davis-Fuhgedabouddit

Two leaders disagree on price relief

This story appeared in the Antelope Valley Press May 30, 2001.

By CHELSEA J. CARTER
Associated Press Writer

LOS ANGELES - Gov. Gray Davis said Tuesday he and President George W. Bush have a fundamental disagreement over whether California is entitled to energy price relief.

"My view is I think we are entitled to relief as a matter of law," Davis told reporters at the Century Plaza Hotel minutes after meeting with Bush.

Davis said he told Bush he intends to do everything, including suing the Federal Energy Regulatory Commission, to bring price relief to California.

"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.

"And among the things I am going to have to do are sue the Federal Energy Regulatory Commission ... and pursue every avenue in the Congress," he said.

Davis said Bush told him that if he was "in my position he would do everything he could to represent, in my case, the 34 million people I'm privileged to represent."

Davis said the meeting was cordial and that Bush listened as he presented his side, but would not agree to price controls.

"He believes it reduces abilities to conserve and discourages investment," Davis said.

But the governor said he showed Bush a chart from the U.S. Energy Department that showed the state ranked No. 1 in energy conservation.

"Obviously it's not going to have any negative effect on our ability to conserve," he said.

Davis said he pointed out to Bush that California had received applications for at least 12 power plants when there were price caps.

"So certainly the investors of those plants thought they could get a very attractive return when we had the price cap," he said.

The governor said the state has made its price request to the FERC and now must wait for its official response before actually going to court.

Davis said the president told him he will send FERC member Pat Wood to investigate claims of market manipulation.

"The good news is the president is distressed to learn that the price of natural gas - Texas natural gas - in New York is roughly $5 per British Thermal Unit and $14 to $15 out here."

Davis said he warned Bush that the energy crisis could push the state into a recession and "bring down the rest of the country."