In 2000 and 2001, California was (0) EXPOSED (EXPOSE) to a series of rolling blackouts. Electric utilities in the state had been 1REGULATED in the 1990s. This led to higher 2WHOLE energy costs. It also provoked financial problems of unimaginable 3SEVERE for many of the state's electric utilities. By the time of the blackouts, California had not 4SIGNIFICANT invested in new power plants in a decade, and it had been forced to import a significant portion of its electricity from surrounding states. A drought in the Pacific Northwest 5DRAMA reduced the amount of electricity available for import from hydroelectric power plants in the region. This drove up the price for electricity in the market, leading to a 6RESIST on the part of the electric companies in the other states to sell to California. In addition, a hotter than usual summer led to 7PREDICTABLE spikes in demand that California's system could not handle. Rolling blackouts hit the Bay area first, then hit cities throughout northern and central California, and, by March 2001, the entire state. The 8GOVERN authorities intervened early to require electric companies to sell to California, but blackouts continued, and the situation has still not been resolved.