Will Power Crunch This Summer Melt Down California's Economy?(A)

By Charles Oliver

Investor's Business Daily

Summer's near, but can California take the heat? That's what Golden State businesses are asking. The state's power crisis could reach a critical point over the next few months, sending the state's economy into a downturn.

And there seems to be little anyone can do to stop the problem. The state's largest utility, Pacific Gas & Electric, has already declared bankruptcy because of its massive debt.

Economists say California's problems could ripple through the rest of the U.S. economy. The state accounts for about 13% of total U.S. economic output and is home to some of the world's most important high-tech firms.

How bad will things get?

"California is facing an electricity shortage of unprecedented proportions,"warned a recent report from the California Independent System Operator, which runs the state's power grid.

CAISO forecasts a huge …