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To: Mark Adams who wrote (84917)	1/22/2001 1:33:57 AM
From: Zeuspaul	Read Replies (2) \| Respond to of 95453

Since it was unable to contract ahead for this power, GPU pointed out, it has to be purchased in the open market at prices substantially higher than the company is permitted to charge its customers. GPU has to purchase the electricity because the company's power plants were sold as part of the deregulation plan. Ooops. Pennsylvania was the example of the working deregulation scheme. It looks like their situation is almost identical to California's..hopefully on a lesser scale and hopefully they will deal with it better than California has to date. It looks like there are fools on the East coast too. Sell the power plants and buy the juice back at a higher price...makes a lot of sense?? So they can produce power with their own plants at a low cost and the power they buy from their own recently sold plant is purchased at a high market price....not a price representative of the cost of producing the power....unless the new guys are inefficient. It kinda blows the California NIMBY theories...focusses the issue on deregulation. I don't think there are any Hollywood types in PA....although if they want a few we will ship them out:) Doug, any more examples of a working deregulation scheme?<g> Who modeled what after who? We have the same thing in California..ie shop for lower cost juice from different providers just like PA...after selling the power plants. The plans are too close for coincidence. Was PA lead astray by CA or did CA follow PA's lead or was there perhaps some federal guidance here? Zeuspaul