Regarding the California energy crisis, The Washington Post says (via Robot Wisdom, found on tompaine.com):

'Full deregulation would eliminate the current shortage by allowing the price to rise enough so that some consumers could no longer afford to pay it. When these consumers cut back their demand, the supply would be then be sufficient.'

That's right. We talk about having a free market, but so many things get underwritten by taxes, like energy and gas. It'd be better to cut that part of taxes, make consumers pay the real price, and watch them decide to indulge less.