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CNN Live At Daybreak

Blackouts Could Make Encore Performance in California

Aired June 18, 2001 - 07:38   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
COLLEEN MCEDWARDS, CNN ANCHOR: Blackout warnings are in effect for this afternoon and tomorrow in California. It is the first time that power grid operators have used an early warning system, and it comes as federal regulators meet in Washington today to look at ways to control skyrocketing power prices.

CNN's Hena Cuevas reports on Californians caught in the energy crunch.

(BEGIN VIDEOTAPE)

HENA CUEVAS, CNN CORRESPONDENT (voice-over): Elizabeth Seiji says she dreads opening her flower shop's electric bill each month.

ELIZABETH SEIJI, FLOWER SHOP OWNER: You don't know what to expect. You know, it's really -- you open it up and you don't know if it's going to go up, you know, 20, 30, 40, 50 percent.

CUEVAS: Plans to update her flower coolers are now on hold.

SEIJI: You know, the money that I could have used for that is going away and paying for energy costs.

CUEVAS: Like Seiji, the rest of California keeps paying more to keep the lights on. The state government has already paid an estimated $7 billion this year to cover energy expenses; funds that were budgeted for other programs such as schools, highways, and parks.

JACK KYSER, L.A. ECONOMIC DEVELOPMENT: They're going to see a lot of wish lists get really drastically cut back, and people are very, very concerned.

CUEVAS: Concerned and frustrated. In the blame game, politicians are some of the first to be faulted. With statewide elections in 2002, including the governor's post, some analysts say politicians are already preparing for a possible fallout.

SHERRY BEBITCH JEFFE, POLITICAL ANALYST: If you're a shrewd politician, you are going to make sure that you've covered all angles and that you've inoculated yourself as best as you possibly can from the political damage that might occur.

CUEVAS: There could also be a price to pay with the environment. Last week, Governor Davis announced he would relax emissions controls that power plants to help increase their output. In a state that's been struggling to clean up its act, some fear this could turn back the clock.

KEVIN FINNEY, COALITION FOR CLEAN AIR: This campaign that's underway to just throw out a lot of the air control regulations would really begin to move us backwards to the days where we did have these really terrible smog alerts on a regular basis.

CUEVAS (on camera): When discussing the long-term consequences of California's energy crisis, most people agree the price paid to keep power running through these lines may be more than just dollars and cents.

Hena Cuevas, CNN, Los Angeles.

(END VIDEOTAPE)

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