Economic Summit considers Energy demand pricing

Yesterday, Governor Schwarzenegger convened his Council of Economic Advisors, and among the discussion topics was how to level off energy demand with market-based solutions:

What Schwarzenegger and the economists said to each other in private was not reported, but apparently the governor got some advice about how the state might approach its problems from a free-market standpoint.

George Shultz, the former Ronald Reagan adviser who chairs the council, told reporters later that they talked about such things as altering the pricing of electricity to reduce peak demand and thus lower the need for more power plants. And they got a briefing on California's deficit-ridden budget.

Market-based solutions should also be considered on the supply side of the energy equation--such as opening new markets for energy imports.