In many parts of the world outside of California, the government actually allows (instead of outlaws) the creation of new generating capacity. There is excess capacity (at night) at cheap rates in many places. (Electricity costs $US0.05/kWh here.)
See my #39 post about how much energy it takes to be the equivalent of 1 gallon of gasoline. Using your figure of $.05 per kwh, a "one gallon of gas" equivalent amount of electrical power would cost $1.70. And that assumes perfect conversion efficiency, which doesn't happen in the real world, so let's use something realistic like 75%. That would make the cost $2.25. Somewhat better than the $3.00+ we're paying today, but not as spectacular as some people might hope.