WHEREAS, on January 17, 2001, I proclaimed a State of Emergency to exist due to the energy shortage in the State of California; and

WHEREAS, there is a high probability that the shortage of electricity will continue to cause rolling blackouts throughout California, endangering public health and safety, threatening property, the environment and economic disruption, and affecting millions of Californians; and

WHEREAS, during this period, all reasonable conservation, allocation and service restriction measures will not alleviate this energy supply emergency; and

WHEREAS, emergency load curtailment programs reducing electrical demand during Stage II and Stage III Emergencies can avoid or mitigate blackouts; and

WHEREAS, many commercial, industrial and other large users of electricity will agree to reduce their energy consumption during critical periods of high demand if provided financial incentives; and

WHEREAS, consolidation of the overlapping and inconsistent load curtailment programs currently authorized or offered by the California Independent System Operator, the Public Utilities Commission and electric corporations will increase customer understanding and participation, and generate maximum benefits from the funding provided by the Department of Water Resources.

NOW, THEREFORE, I GRAY DAVIS, Governor of the State of California, by virtue of the power and authority vested in me by the Constitution and statutes of the State of California, including the California Emergency Services Act, do hereby issue this order to become effective immediately:

that the Department of Water Resources and California Independent System Operator shall implement voluntary, emergency load curtailment programs for commercial, industrial and other large customers of electric corporations for Summer 2001 and Summer 2002. The Department of Water Resources will finance these programs compensating participating customers in exchange for the customers' agreeing to reduce their electricity consumption, upon notification, during a Stage II or Stage III Emergency.

that the Department of Consumer Affairs shall incorporate these programs into its media awareness campaign for maximum customer participation.

IT IS FURTHER ORDERED that this order shall expire on October 31, 2002, unless revoked, modified or extended by further Executive Order responding to the continued need for emergency action to deal with the energy emergency, or unless terminated by proclamation of the Governor or concurrent resolution of the Legislature that the state of emergency has ended.

The activities herein are authorized to be carried out pursuant to the Emergency Services Act, Government Code section 8550 et seq., as necessary to mitigate the effects of the emergency.

I FURTHER DIRECT that as soon as hereafter possible, this order be filed in the Office of the Secretary of State and that widespread publicity and notice be given to this order.