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New What would you have had Bush do?
Impose federal regulations on a state market? (Other states have tried, and succeeded, with "real" deregulation, not California's regulated so-called deregulation.) I generally hold that the less interference from Washington D.C., the better - and if a state or locality gets into trouble, they deserve to stew in their own juices. (But then I think California, land of the fruits, nuts, and stupid lawmakers deserves to stew more so than most states.)
Famous last RPG quotes: "I'll just shoot this fireball down the dungeon passageway..."
New Well, I haven't had much time...
...to think up what he could do, but #1 would have been to get some relief for the non-Californian states (such as my home state, Washington) that were getting screwed over by the spew from California.

As I remember, the price gouging got WORSE outside of California, once the energy regulation committee (and no, I don't remember the name) clamped down on the California market, but then avoided clamping down anywhere else. Perhaps they should have done the opposite?
"He who fights with monsters might take care lest he thereby become a monster. And if you gaze for long into an abyss, the abyss gazes also into you." - Friedrich Nietzsche
     "Smoking gun" in California energy price manipulation found. - (inthane-chan) - (7)
         Sure... - (folkert) - (6)
             I'm sure they're not the only reason things got bad... - (inthane-chan) - (5)
                 You is right, I was just pointing out... - (folkert) - (2)
                     And its usually good... - (bepatient) - (1)
                         Being taken and opportunistic taking.... - (folkert)
                 What would you have had Bush do? - (wharris2) - (1)
                     Well, I haven't had much time... - (inthane-chan)

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