Considered the poster child for botched implementation of an electric competition policy, California may be poised for a dramatic turnaround in electric policy as a result of the election of Arnold Schwarzenegger in the recall election of October 7.

The official Schwarzenegger website contains a detailed position statement on “energy,” one of only seven categories listed as part of Schwarzenegger’s agenda. (http://www.joinarnold.com/en/agenda.) The statement is four pages long and focuses exclusively on electric markets. Emphasizing California’s high electric prices, the increase in demand, the need for California to become competitive with surrounding states, the need for investment in infrastructure, and flaws in the original deregulation scheme, Schwarzenegger emphasizes that “As Governor, I will . . . Make markets work.”

“Frankly, I was shocked when I finally read the statement,” said Ken Malloy, CEO of the Center for the Advancement of Energy Markets (CAEM). “I expected the typical drivel and generalizations so emblematic of campaign documents. What I found was a detailed, sophisticated assessment of California’s energy situation with a clear game plan for implementation, completely embracing competition and reliance on markets.”

Schwarzenegger’s clarity and focus is all the more surprising given the context created by the Four Horsemen of the Electric Apocalypse—California’s high profile electric policy failures, Enron’s collapse and its role in the California wholesale market, the meltdown of the trading sector in Enron’s aftermath, and the Blackout of 2003, Malloy said.

“Few politicians are willing to embrace unabashedly market solutions for energy in this context,” Malloy added. “The Legislature and the Executive can learn from past mistakes, unite, and move forward on a more coherent plan for allowing markets to work in California. CAEM applauds the revival of a policy of competition and markets in California energy markets.”