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Strategies & Market Trends : Rande Is . . . HOME

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To: moufassa7 who wrote (52003)6/6/2001 1:39:38 PM
From: Joe Lyddon  Read Replies (1) of 57584
 
OT> California is well on their way to solve their energy problem. . . BUT
there will still be increased costs in buying energy at obscene prices before California's solution can take effect.
There is a gap of about 1.5 to 2 years+ before the solution can be realized. . .

What I am after is the short-term solution to handle the gap. . . That's all. . . No more. . .

Your solution is about only Californians paying for all of the increased costs. . .

In a normal business, increased costs are passed on to it's customers. . . Can't Calif. do the same?

My proposal is to do just that. . .

1. Increase California utilty customer rates to help cover it, but not ALL of it.
This has already started. . . but, is it enough?

2. Pass on the rest of the costs to customers of California's goods & services in the form of an Energy Tax.
This method would be easier than allowing each company to increase their prices, etc.
One tax to handle it for all California companies producing goods & services exported East of California.

3. Possibly have some type of regulation against flat out price gouging. . . which would have a tendency to reduce items 1 & 2 above. . . If not done, items 1 & 2 would cover it all.

4. As well as the normal conservation steps that should be in use at all times.

If the price gouging is not stopped, California's plan will not have a chance to work. . .

Price gouging: . . . Charging $800-$900 per megawatt hour vs. the normal $35. . .
That's a cost increase of only 2,300% - 2,600%. . .!!
That is obscene!


Now, if your next argument is that it's not fair to charge anyone else for California's problems, then, by all means, just don't buy any of the goods & services from California!

Joe
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