Other investigations and lawsuits are indeed piling up. Investigations by California Attorney General Bill Lockyear, the CPUC, the Energy Oversight Board, the state auditor, the Independent System Operator, California Sen. Joe Dunn, the Federal Energy Regulatory Commission, or FERC, and a host of private lawsuits are all pending. The only tangible result has been a ruling by the FERC that generating companies may have overcharged California power purchasers by nearly $120 million. However, the FERC has asked the generators to justify the pricing or refund the amounts as opposed to ordering mandatory refunds.

On Wednesday, California Lt. Gov. Cruz Bustamante and Assemblywoman Barbara Matthews filed suit against generators, seeking the return of billions from overpriced power. In addition, Bustamante is seeking legislation that would hold executives criminally liable if their companies are found guilty of price gouging. And, his proposal would allow the state to seize generation assets if price gouging is proved.

Finally, a state Senate committee has passed windfall-profits tax legislation that would impose a 100% tax on generation profits exceeding $80 per megawatt hour. Passage is far from certain, and the governor has not indicated whether he supports the proposal.

Common Sense

Duke's proposal caught other generators off guard and, privately, has been greeted with resentment from those generating companies that felt Duke's action was somewhat renegade, given the consistent message the generators thought they were presenting.

However, portions of Duke's proposal make a great deal of sense as California searches for a solution.

The state must get past its anger toward generators who -- while possibly pushing the envelope -- followed California's repugnant electric deregulation law. Until the state gives up on its likely unsuccessful attempts to blame others for its policy mistakes, a solution is out of reach. Every time the state threatens the generators with sanctions, fines and even jail time for executives, it delays the real solution to the crisis: the development of more power generation in California.

It is implausible to think the current government posture toward those who can solve California's energy crisis creates an environment in which anyone would want to build new generation plants. The governor, the attorney general, Sen. Dunn and the lieutenant governor should willingly rest their campaigns against the generators as part of a comprehensive solution.

And the generators should agree to temporary price restraints, a forgiveness of a portion of past power costs and an accelerated generation-development schedule with reasonable long-term supply contracts in return for the state's willingness to drop the plethora of investigations. The legal fees to defend these actions alone will offset a big portion of potential writedowns, many of which have already been anticipated.

The bottom line is simple: California faces near-certain blackouts this summer. If the state has any hope of avoiding the same fate in 2002, the rhetoric and hyperbole must stop, and action must be taken.

It's time for enlightened leadership to say enough is enough. Instead of pointing fingers, plug in to a solution. Duke's plan provides a starting point. The state and other generators should embrace the opportunity.

If not, much darker days lie ahead in California.