Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The California Energy Crisis - Information & Forum -- Ignore unavailable to you. Want to Upgrade?

To: Bearcatbob who wrote (215)	4/8/2001 12:53:56 AM
From: Zeuspaul	Read Replies (1) \| Respond to of 1715

The old model will work - until demand exceeds supply The old model analyzes future demand and plans accordingly. The California Energy Commission predicted the increase in demand. They asked the utilities to build more power plants. Edison cried to the feds and the feds backed Edison's contention that the predictions were excessive. The Energy Commission was basically told predictions were no longer in order as the market would take care of things. It is the new model that failed. Power has been deregulated in California since 1996. Generators were getting market rates for their juice and consumers were paying market rates. Producers were making a lot of money. If a free market in juice is the new brains then where is the juice? Does the free market in juice wait until there is a price spike to start thinking about creating more power plants? It will not work. The power industry must plan ahead..and it must consider the big picture. What power producer in his right mind would over build power production facilities on the one in ten chance it won't rain in Seatle? The share holders wouldn't support it. The CEO says he built a few extra power plants so California would have juice in the off chance there might be a drought in the North West? Unlikely. You question natural gas - it is the only thing that can be easlity permitted AND quickly built And that is why the independent power producers opt for natural gas. They are looking for the easy way to make a buck. That is how the market works and that is why it shouldn't control the planning of the power industry. There are other things to consider. There is no shortage of LNG - There is in the US. We need to consider reducing our dependence on foreign sources of fuel. it can be cheap and green. But not as green as solar. Green house gases are a significant world issue. Our leader has chosen to renig (at least he is not lying about SEX) on the green house promises and thumb his nose at the world...American arrogance...not a good thing....at least he is not lying about SEX! Zeuspaul