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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: pompsander who wrote (9850)	1/4/2001 8:01:16 PM
From: jaall	Respond to of 30051

Pomp, An interesting observation and theory. I live in CA but I buy my power from an out of state Green supplier. Because of this I've been exposed to the 4x increase in the wholesale cost of electricity. PG&E rebates these high charges to me as part of the deregulation deal. The "deal" is crazy. Every day there is an auction in which producers offer x KWH at y price. The CA SOS starts accepting offers at the lowest price and moves up the price scale until they have all they expect to need for the next day, then they go and pay everyone the price of the last (highest) bid accepted. I think this was supposed to be "fair" but it does not take a rocket scientist to figure out how to make a killing. The supply and demand is approximately what it was last year but the total price paid is much higher than last year. Someone goofed, and now there is a big bill that has been legally accumulated.

To: pompsander who wrote (9850)	1/5/2001 8:28:38 AM
From: Bosco	Respond to of 30051

Hi all - pompsander, there may be more truth in your idea than conspiracy :). CA is still the largest economy within the US [1/6 of all of the US?] So, with electricity and natural gas jumping that way [I read an article on SF Gate site about the problem with the rose nursery company. Its energy bill jumped from $4,500 to $21,000!] Together with the dotcom demise, which probably hit the Bay area more than other major metro areas, there could be a major economic brownout! If Chmn Al is willing to help LTCM, he will not be unfeeling about CA IMHO, the 2nd discount rate cut is a lesson learnt from 1997. Or, to use an analogy, it is like taking antibiotics, it requires multiple dosage to rid the bug :) best, Bosco