Let me add on regarding California:

No new power plants in 10 plus years due to the most strict environmental regulations in the USA.

Significant drought in US Northwest where lower water supplies mean lower hydroelectric output.

"Political Deregulation" where incumbent utilities had to divest owned generation, buy energy from the spot market exclusively from a state run hourly exchange and charge consumers capped rates that ultimately were below the price to acquire the power. Additionally, consumers only got to glimpse the "real" cost of their energy and subsequently freaked.

Now, regarding SUV's, there was an article in the May 30 Wall Street Journal reporting that SUV sales were down due to market saturation (no longer unique like a PT Cruiser) and fuel prices.

Hmmmmm. The cost issue again?