California's non-deregulation allows wholesale industrial users to pay market rates for power. Ordinary household consumers were fixed at a low rate (vote pandering). When prices sky-rocketed in the winter of 2000, Utilites were then forced to provide power at prices far below the cost of production, resulting in the loss of billions of dollars.
Had Davis had the political guts to free "ALL" power to market prices, there would have been a little short term pain and it would have gone away quickly.