I agree with the portion of your comments addressing deregulation. If you're going that route, you must totally deregulate. Half measures contributed to a portion of California's problems, perhaps more than we suspect.
Regretably thats been the time proven case. I feel badly for California residents because ultimatley they will bear the pain for idiotic political decisions. Started with Wilson and quasi dereg, continued and exacerbated by Daivs for refusing to pass on high prices, for political gain.
I'm in the oil & gas exploration business and saw graphically what went on in CA. Michigan prices for nat gas, while still historically high, were 50% less than prices we got for CA sales.