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To: Ilaine who wrote (56128)1/10/2001 11:30:24 AM
From: yard_man  Respond to of 436258
 
yeah, I think that's what i said -- I agreed with Jack -- not enough generation investment in CA.

Of course the near term problem is what they have to pay for scarce power -- getting an agreement with suppliers for a short term until they have some new gen come online won't do damage to the economic signals -- they've already been sent -- just so long as the suppliers don't get screwed for what they have already supplied ...



To: Ilaine who wrote (56128)1/10/2001 11:46:23 AM
From: Don Lloyd  Read Replies (1) | Respond to of 436258
 
CB -

...Cal's problem is that in state generators don't generate enough electricity for intrastate demand, period....

This needs to be qualified by noting that the demand is price controlled below the effective market rate. At some price, there would be more than enough generation capability to meet demand even without bringing more capacity on line, and it is the peak load price that is important.

Regards, Don


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