American Spirit,
I realize that I will not convince you, but I can tell you that Jeffords switched left the Republican party around May 25, 2001. The highest average monthly wholesale electricity prices in CA were seen in December 2001 at $300/MWhr (http://www.caiso.com/docs/09003a6080/13/f0/09003a608013f05b.pdf). You are correct though, that there was a dramatic price drop in June 2001.
If Clinton and Gore got blindsided, it is because they ignored Gray Davis. Gore could have used California as a National Campaign issue in the fall of 2000-"If Bush gets elected, what is happening in California, could happen to you next". They did not, because IMHO, there really was a shortage.
"...At the present time, there is virtually no price elasticity in this market, and little prospect of change in the short run. The result is uncontrolled price spikes with no end in sight....The Independent System Operator Market Surveillance Committee indicated that the market design in California is subject to abuse and price manipulation...
This is an important step FERC can take to ensure that California consumers have an effective remedy to market abuse."-July 27, Letter from Gray Davis to James Hoecker, Chairman of the FERC (cc. President William J. Clinton)
"Mr. President. San Diego consumers have paid an enormous price for deregulation in a market that no one believes is functionally competitive. Any delay in relief could mean the difference between paying for other basic necessities and paying the electric bill for many vulnerable citizens...But the outrageous wholesale prices being charged by out-of-state generators makes any rate stabilization plan a difficult and expensive endeavor...Your support in requesting that the FERC accelerate its investigation and ultimately recognize that the market is dysfunctional is critical to our efforts." - August 10, 2000 from Gray Davis to President William J. Clinton. |
