James Hamilton at Econbrowser slices and dices CA Attorney General's plans to investigate gasoline price gouging in CA.
Whole thing here.
Finally, let's look at this question from the perspective of what would most help Bill Lockyer politically. The majority of California voters have not taken a principles of economics course and don't understand points (1) through (3) above-- Exhibit A: They elected Lockyer to be attorney general. Voters are frustrated by high gas prices and are anxious to find a scapegoat and a leader who will claim to do something about the problem. Besides, it is Californians, not Georgians, whose votes Lockyer cares about.