State Hires Firm as Advisor on Energy Plan

California has hired a consulting company to advise the state on its energy policy and assist with investor communications as part of efforts to increase investment in the state’s power industry.

Saber Partners, which advised the state in 2001 during the energy crisis, plans to host a conference call with investment analysts and state officials in the next few weeks to discuss the state’s energy plan, Chief Executive Joseph Fichera said Monday.

Gov. Arnold Schwarzenegger’s administration is studying the possibility of building new electricity transmission lines and upgrading older lines so that California would be able to import more power from out of state.

Schwarzenegger also wants new power plants to be built in California to avoid the type of shortages that resulted in blackouts during 2000-01.

“The administration wants to be proactive in getting support from the private sector for the energy needs of the state of California,” Fichera said.

California incurred blackouts in 2000-01 when electricity was shut off to areas on a rotating basis because of power shortages.

The state Energy Commission has said power supplies in Southern California could fall short again this summer if there are prolonged periods of above-average temperatures.

“California is moving forward with a comprehensive action plan to provide an adequate and stable supply of electricity at reasonable prices,” said Joseph Desmond, the state’s deputy energy secretary. “As Wall Street and others learn more about our program, investment in California will grow.”

Saber has advised state commissions in Texas and New Jersey on transactions for utility companies issuing bonds that are repaid by a special charge on customer electricity bills.

New York-based Saber also worked with Blackstone Group in 2001, advising then-Gov. Gray Davis’ administration during the energy crisis. Saber conducted investor conference calls at that time and helped state energy officials review various proposals, including a plan for the state to buy transmission lines.

Fichera declined to comment on the terms of the state’s new contract with Saber.