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Pastimes : Clown-Free Zone... sorry, no clowns allowed -- Ignore unavailable to you. Want to Upgrade?

To: portage who wrote (56861)	1/11/2001 11:31:07 AM
From: flatsville	Respond to of 436258

Re:Chicken Something Glynn (PCG) said this morning on CNBC re: San Diego and the temp price pullback/rate cut SPGE? agreed to prompted me to look for an article I'd saved from back in the fall. No wonder CA users and incredulous and suspicious: claremont.org Making Sense of California’s Electricity Mess By Brian T. Kennedy The California State Legislature has passed a package of bills to relieve, at least for appearances sake, San Diego rate payers from their high electric bills. San Diego is the first region in the state to enter fully the restructured electricity market, having completed the transition process from regulated utility to electricity supplier. The relief package, part of which Governor Davis has signed, includes a price freeze on the retail cost of electricity and a streamlining of the siting process for new plants. Left unfixed was the wholesale electricity market which will continue to charge high prices throughout the state. For the meantime this will mean a stabilization of prices for beleaguered San Diego consumers, but also the accumulation of a multi-million, if not billion, dollar debt that will someday have to paid by rate payers, tax payers, or utility shareholders. The day before the vote, on an unusually cool August day, electric rates hit their wholesale market price cap of $250 per megawatt hour. Demand was low and supply—as measured by total megawatts available to the market— was more than adequate. Theoretically, prices should have been closer to $60 to $80 per megawatt. Legislators were left scratching their heads. In the end they passed a stop-gap measure that will do little to stop the long-term problem of California’s electricity market and in fact may worsen it...