Lynne Kiesling has written an excellent summary of the economic and social issues in California's odd statist proposal for central control of thermostats over at Knowledge Problem. As always, her disection of bad economics is better than mine.
I wrote about the proposal, and how it would undermine the development new markets, including small scale energy arbitrage in my musing on Energy Shorts.
Read what Lynne writes in Big Brother or Control Freaks.