by Lance T. Izumi, Fellow in California Studies
Pacific Research Institute
April 3, 2001

Announcer lead: Time for Perspectives. Lance Izumi says that Governor Davis is losing credibility in handling the electricity crisis.

In my commentary a couple months ago, I said that Governor Gray Davis had to offer not only offer more realistic solutions to California’s electricity crisis, but also better leadership. At that time, Davis seemed more interested in avoiding political blame than in solving the state’s energy problems. Since then, unfortunately, Davis’ efforts to dodge political and policy responsibility for the crisis have reached truly absurd levels.

For months, experts have said that the retail price of electricity paid by consumers must be increased to bear some relationship to the high wholesale cost of electricity paid by the utilities. The state Public Utilities Commission finally bowed to this reality and has just approved a rate increase of 40 percent for many utility customers. Even liberal Democrats like Assemblywoman Jackie Goldberg acknowledge the necessity of the rate hike. Yet, Gov. Davis not only clings to the fantasy that no rate hike was needed, he claims that he didn’t even know that his own Commission chair, Lorettta Lynch, was going to propose an increase.

Anyone familiar with Davis scoffs at this claim. Davis is a well-known micromanager and keeps his appointees on a very short leash. As the Los Angeles Times notes, to believe that Ms. Lynch would propose a massive rate increase without Davis’ knowledge strains credibility. Davis decided either to remain shockingly ignorant or to engage in equally disturbing political deceit.

Davis’ fellow Democrats are clearly worried about the governor’s appalling performance. State Senator Don Perata says that Davis appears to be overwhelmed by the crisis. Senator John Vasconcellos points out that if you don’t face reality you can’t improve it, and calls Davis’ actions baffling.

The irony is that Davis’ attempts to escape political blame for the crisis could end up destroying his political career. In times of crisis, people want their leaders to lead and Davis’ abdication of leadership will likely play very poorly with voters next year. Whether someone like Arnold Schwarzenegger gets into the race or not, it could well be hasta la vista Gray.

With a perspective, I’m Lance Izumi.

Lance Izumi is the Director of Center for School Reform at the California-based Pacific Research Institute for Public Policy. He can be reached via email at lizumi@pacificresearch.org.