This paper summarizes policy decisions by the State of California regarding energy. The goal is for energy in California to be "adequate, affordable, technologically advanced, and environmentally-sound." Policies are outlined, including plans for dynamic pricing of power and demand response to managing loads. The States plan to generate 20 per cent of electricity from renewable sources by 2010 and 33 per cent by 2020. The rate-setting process for the investor-owned utilities will be made more transparent. Alternative fuels for transportation will be investigated. California is seeking to reduce greenhouse gases to 1990 levels by 2020 and 80 per cent below these levels by 2050.