Don, I've had more than enough economics and statistics classes and utilization in my work environment to understand the basics, as well as knowing that if you ask 10 economists a question you'll get 8 answers. The definition that summed it up for me was - Economics is Supply and Demand - they supply the bullsh*t, and we demand that they stop it.
I understand pricing mechanism concepts, and it seems pretty obvious that with our new rate hikes and tiered surcharge system a form of them are now being implemented. And yes, there will be a real shortage this summer, and at times no rate increases will stop the blackouts, if we can believe the forecasts. Pricing alone will not prevent blackouts, and there is no system in place for adjusting real time pricing either. If we have blackouts, we have blackouts -- but getting charged 10x or 20x what anyone else is for the power while doing this, because of FERC complicity, is obscene. Put any normal American in our shoes, ask them if they agree with this, and see what kind of common sense response you'll get.
The question here is not the basics of pricing mechanisms - it is preventing extreme gouging and gaming of a basic need, whether it's done illegally, illicitly, undetectably, or legally, but in a way that FERC should be preventing according to their charter.
New generation and transmission will still be built, if they place caps above the highest national prices, but without enabling the unlimited ability to manipulate and gouge to unheard of levels. |
