I tried troubleshooting iCloud calendar, but although I did not find what I wanted there, the discussions made me think of searching under local calendar instead of On My Mac calendar. I noticed another discussion after I searched for "can't create local calendar". I came across this discussion:
On the second and last page was this entry:
Latest reply: Jul 30, 2012 1:08 AM by Mike Matthews
If you Control-click on an empty space in the Calendars list in the sidebar a pop-up menu appears and you can choose New Calendar. On my Mac appears as a choice! You can also make a new calendar group this way. I still have the bogus icloud account, but I can ignore that now and still make local calendars. I did not have to reinstall iCal, and pulling out com.apple.ical.plist and logging out or restarting the computer did not get rid of the troublesome account refererce. Thanks for the help.