Governor Promises Cheap Power to Lure Businesses

High taxes. Expensive cost of living. Strict regulations. All of these barriers to attracting new businesses are just compounded by souring energy prices. Governor Schwarzenegger, however, believes he can get them under control, and is offering low power rates to try to get at least one company to expand in California:

Amy's Kitchen, purveyor of frozen organic entrees, wants to expand. And its search for a new manufacturing site has triggered a high-profile tug of war between Schwarzenegger and Oregon Gov. Ted Kulongoski, with both states vying to host the new plant.

As a result, California energy regulators today will consider cutting Amy's electrical bills, an idea hatched by the governor's office and pitched for approval by Pacific Gas and Electric Co. The firm could save roughly $2 million in the next five years.

Although power bills aren't the only factor in Amy's decision, company officials say lower rates would help them expand here.

"We've got a business model that survives on extremely low margins, so actually, that reduction in electrical rates would be extremely significant to Amy's Kitchen," said Chief Operating Officer Scott Reed. "You wouldn't think it would make a big difference, but we're growing rapidly."

Even better would be to find a way to lower electricity costs for all Californians!