Need to raise retail prices in CA
I strongly agree with the Patron Anejo statement - Voluntary isn't working, and damages high value business, mandatory won't work (far too much civil disobedience / lack of awareness).
I'm paying 8 cent a KWH in Silicon valley, where average personal income is > $ 60k, and household income is >80k. Rates could double, and 90% persent of high tech wouldn't blink. Even the semi makers have high gross margins and could easily eat the higher elctrical cost.
Adverstising signs are still on, Christmas lights were on all December, and even Intel's buildings have flourescent lights on all the time (and since the only work 14 hour days, you know it's wasted the other 10 hours)
A large increase, followed by a time of day and/or demand pricing model for large industrial and commercial users,
would quickly cut demand, and cause and easing in wholesale pricing also. This would stop the utilities from going deeper in the hole.
With a relaxation in clean air rules, we could make it through the summer, and with a few more plants online in fall,
maybe make it to mid 2002, when many more plans will convert the electricity shortage to an NG shortage. ;-)
If we get an additional pipeline built by 2004, we'll be okay...
California needs reliable electricity. It doesn't need cheap electricity any more than it needs cheap land or cheap gasoline.
My prediction : it will take about 7-10 days, but we will see closer to market pricing at least for industry and large
commercial users, and maybe a 'token' hike for consumers. This would help, since Intel can out bid Kmart,
and Kmart will turn out enough lights at peak times. In this sceanario, agriculture and low value industry gets shafted...but neither Diane Fienstein or Gray Davis take their calls anyway. |
