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Technology Stocks : The *NEW* Frank Coluccio Technology Forum -- Ignore unavailable to you. Want to Upgrade?

To: Theophile who wrote (1821)	1/19/2001 12:06:41 PM
From: Hawkmoon	Read Replies (1) \| Respond to of 46821

Here's another view of the California energy crisis that may help you to understand why much of the problem is due to governmental ignorance of how markets work: Message 15211624 "These causes include higher power demand from a booming economy, unprecedented natural gas prices, transmission congestion or “bottlenecks,” a requirement for the utilities to buy all power from a Power Exchange without the ability to do forward price hedging, lack of new power station and transmission construction, and market structure inefficiencies. Right there you have all the evidence you require of how public regulators have distorted the private markets. By eliminating CA utility's ability to lock in power supplies with forward contracts, they subject themselves to the volatility of the highly volatile spot markets. Had they been able to enter into long term contracts, they would be able to shift the cost of the high natural gas prices onto the generators (who would then be in a real pickle and probably facing bankruptcy). So forget about the San Francisco lawsuits... power suppliers outside of California can charge what they want to charge for power. If California doesn't like it, they can go elsewhere to buy their power, right? Or maybe better yet.. they can get off their @sses and start increasing their generating capacity. Regards, Ron