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Pastimes : The California Energy Crisis - Information & Forum
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To: Zeuspaul who wrote (861)8/15/2001 1:34:00 AM
From: MulhollandDrive  Read Replies (2) of 1715
 
From the Times article...

>>That's what happened during an energy glut in the 1980s, when utilities cut back conservation incentives and obtained rate changes that encouraged usage in an effort "to consume their way out of the mess," said Bill Marcus, an economist with JBS Energy Inc., which consults for the Utility Reform Network consumer advocacy group. <<

You say...

>>Then with deregulation the retail rates were kept artificially high and the utilities continued making $'s.

The utilities were making big bucks and there was a surplus of energy. The utilities/power producers wanted to bring the surplus down so rates would rise when retail rates went to market rates. The utilities didn't want to build more power plants because a surplus was not in their economic interest.<<

Please explain to me 'artificially high rates' and how those worked to increase usage...that would go a long way in helping me to understand your logic. In the meantime, I'll see what I can do to perhaps find a timeline of rate increases after the 1980's glut that would explain the "unwillingness" of the electric utility cos to build additional plants. If I'm following your logic, you are telling me that despite artificially high rates and making $$$$ the utilities decided it was in the best interest of the shareholders to create a supply deficit, run the risk of blackouts and economic hardship to the state economy in order to raise profit margins.

Interesting.
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