"The Feds are not in the mood for any independant thinking by States. Think Patriot Act."
Normally, I would agree with you, but this is California. It is run mostly by feelings.
Governor Davis is clearly in the wrong on this. He has politicized the energy situation in California and is intent on instituting a government-run power industry in that state.
If it were merely a matter of California providing for its own power needs, that would be one thing. But it imports power and that makes it subject to FERC.
I hope and expect that Davis will lose big. Californians had better hope so, unless they like Soviet-style government coming from Sacramento.