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To: Think4Yourself who wrote (87625)	2/18/2001 12:20:42 AM
From: Zeuspaul	Read Replies (1) \| Respond to of 95453

Pretty hard to justify running an old inefficient plant when your input fuels are at sky high prices, your output prices are fixed at well below national market prices, and you have to pay a daily hefty fine as well. Output prices are not regulated...the juice goes to the highest bidder. The fines may be rather small in comparison to the price of juice. Considering the prices California is paying for electricity I would think they would wave/reduce the fines if they were big enough to make a difference. but 55% of the plants in California are over 20 years old, and require substantial maintenance. I wonder why Edison refused to build a plant back in 1994? when the California Energy Commission urged them to do so due to the projections for increased demand. Edison cried to the Feds and the Feds backed Edison. Here is an interesting fact from the LADWP about 1/3 of their capacity being in maintenance: I don't get your point. LADWP is selling excess power (750 Mw?) to California. If they have adequate power for their customers and a bunch extra and they are doing it with two thirds of their plants what difference does it make if they service some of their older plants? There will always be a mix of old and new plants. Perhaps with their move into the distributed power market (fuel cells, solar cells) they will get rid of a few more of their older plants. If the Private utilities and the Independent Power producers were in such a position there wouldn't be an energy crisis. LA's businesses will prosper because they purchase low cost power from LADWP. I will take that over high cost market juice and bankruptcies anytime. Zeuspaul