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Pastimes : The California Energy Crisis - Information & Forum
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To: DOUG H who wrote (901)8/21/2001 12:55:50 PM
From: Raymond Duray  Read Replies (1) of 1715
 
Hi Doug,

Re: Not true sir. I have friends in LA who's rates were not effected while DWP was selling juice WELL above average. Under what condotion can they justify selling power for such astronomical rates other than taking advantage of the situation?

I think you may be a bit unclear on the concept here, my friend. What you claim to be not true surely was. The municipal utitilities were responding to an emergency call from the ISO or the Power Exchange to supplement supply during Stage III alerts. This is when the rates being charged by the IPPs were allowed to soar for their peakers that weren't part of the "need to run" scheme. The fact of the matter is that we're being fed a lot of BS about these average prices charged, in that the pricing that the munis charged followed the IPP's peaker quotes and are being used by the writer in the LA Times piece, and by the producer's association in a profoundly devious and deceptive manner. Fact is, the munis were paid what they were because AB 1890 insanely required that all participants on the spot market be paid the highest quoted and accepted offer on $$/Mwh. The lie is that the IPPs have blended their most egregious peaker rates with their longer term contracted "must run" rates and to the naive public, it appears that the munis have ripped off the system. This is completely backwards from what actually occurred, and the way the market really worked. But it is a brilliant bit of spin, I must admit. It even suckered a smart guy like you.

Best Regards, Ray :)
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