President Bush promised Monday to "act boldly and swiftly" to address the nation's energy problems and directed Vice President Dick Cheney to head a task force to develop an energy strategy.

Concerned that California's power crisis could spread into other states, Bush said he wanted a plan to address both short- and long-term energy problems. He gave no clear indication of short-term policies he might be considering.

"We're very aware . . . that the situation in California is beginning to affect neighboring states," Bush said in Washington after a meeting with Cheney and Cabinet members.

Western governors are to confer this Friday in Portland, Ore., at a meeting that also will be attended by Energy Secretary Spencer Abraham.

Bush said the task force will address both short-term problems of soaring electricity and natural gas prices and longer-term energy supply problems, focusing on producing more domestic oil and gas and building more electric power plants.

But Bush and Cheney reiterated that California's immediate energy woes are for the state to fix. Bush said he was encouraged that the state was making progress in correcting its attempt to deregulate power markets.

In Sacramento, state lawmakers continued working on a rescue plan for Southern California Edison and Pacific Gas Electric Co. that could commit the state to buying power for the utilities' customers for up to a decade and give the state a stake in the companies.

California's $400 million emergency energy fund was exhausted late Sunday, and Gov. Davis on Monday ordered that other state money be used to continue buying power.

Davis' administration would not say how much money was available or how long short-term energy buys would remain possible. The state began buying electricity 12 days ago.

An audit of the utilities' finances, ordered by the state Public Utilities Commission, was released late Monday. In the audit, the accounting firm KPMG said Edison claimed $4.5 billion in debt as of Dec. 31 from having to sell power for much less than it paid on the wholesale market. However, the audit said Edison's actual shortfall is $2.5 billion after its income from selling electricity is considered.

The audit said Edison's cost-cutting plan, which includes eliminating up to 2,000 jobs, may give the utility more breathing room financially. But the audit said Edison "has exercised all available lines of credit and has not been able to extend or renew credit as it has become due."

The keeper of the state's power grid extended a Stage 3 electricity alert. The alert, imposed when reserves drop under or threaten to fall below 1.5 percent, has been in effect for all but a few hours over the past two weeks. Blackouts were unlikely, however, said a spokeswoman for the Independent System Operator.

California's energy crunch and the worries that it will spread have provided momentum for Bush, a former oilman, to press his argument that the nation for too long has neglected energy production.

Some California officials are angry over the president's largely hands-off response to their immediate crisis.

Bush is using the state's energy problems as "a subterfuge and ruse" to gain political support for drilling in the Arctic National Wildlife Refuge, said Assemblyman Fred Keeley on Monday. Keeley, a Democrat from Boulder Creek who has been involved in trying to craft a state solution to the energy problem, opposes drilling in the refuge in northeastern Alaska.

Bush press secretary Ari Fleischer said the focus at Monday's White House meeting was the national energy picture, but he added "you can't talk about a national energy policy without also talking about California." Still, he said there were no new developments on possibly helping California.

"It's becoming very clear to the country that demand is outstripping supply, that there are more users of electricity and natural gas than there are new units being found," said Bush, focusing on the national picture. "And we've got to do something about that in the country."

The long-term issue is "how do we find more energy supplies," Bush replied when asked by a reporter about environmentalists' opposition to drilling in the Arctic refuge, commonly known as ANWR. "A good place to look is going to be ANWR."

Senate Republicans are expected, possibly next week, to introduce a broad package of energy legislation including approval for oil and gas development in the Alaska refuge. Some opponents said such a provision could be a "poison pill" that could stall other badly needed energy measures.

Meanwhile, in Sacramento a freshman legislator says it's better to shut down state offices during rolling blackouts than force businesses or residences to go without power.

Assemblyman Paul Koretz, D-West Hollywood, has introduced a bill that would require state buildings and facilities not essential for public health and safety to be first in line to be darkened when blackouts hit.

In Redding, city officials are taking advantage of the crisis to promote the city. "Redding -- a clearing in the storm of deregulation," is a slogan Redding's city-owned utility will use to attract businesses from the San Francisco Bay area and other parts of the state suffering through rolling blackouts and the prospect of soaring electric bills.

Press-Enterprise staff writer Robert T. Garrett contributed to this report.