Re: Solving the California Energy Crisis
As someone who currently resides in CA and hears about this on a daily basis, the situation is unbelieveable. The state of CA really screwed this up. It is very clear that the people who drafted and passed the deregulation plan had NO GRASP of basic economics. I mean the situation is fairly simple, your average high school student could have seen this would fail.
First: CA has not allowed any new power plants to be built in the last several years, despite growing power demand.
Second: They ordered the regulated utilities to sell their power plants to the highest bidder whose operation of said facilities would be unregulated. (Even the utility companies were suprised how high the bidding went for the power plants.)
Third: They prohibited the utilities, which are now simply distributors of electricity, from signing long term contracts with power generators. The utilities are forced to buy on what is called the "Spot Market". These are deals to supply power for hours to weeks, generally "excess" power generation capability is sold this way by other utilities to help keep costs down for their consumers. Prices on the spot market fluctuate wildly, and are at this time VERY high.
Fourth: The utilities (distributors) were required to sell at a set price, despite what they were having to pay for the power. When they complained about selling at a loss and losing money they were told to "be patient" that it would all get better. Nobody took this seriously until the utilities were on the verge of financial failure. They have often been in the position of having to pay 10 times what they are allowed to sell for, but they are not allowed to stop distributing power no matter what the losses.
What moron dreamed this up! The only way to fix the problem is to increase supply by building more generating facilities, but the greenies won't let it happen. Not to mention they want to tear down the dams in the Pacific Northwest, which are the only darned reason we've got any power here in CA at all.
AND THEY STILL THINK ELECTRIC CARS ARE A GREAT IDEA!!!!!!
Grrrr, I hate stupid people...
I am a "Sheetmetal Darwinist"