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Politics : High Tolerance Plasticity -- Ignore unavailable to you. Want to Upgrade?

To: Think4Yourself who wrote (3579)	4/19/2001 10:52:05 PM
From: gamesmistress	Respond to of 23153

The politicians cannot solve it, because they don't really understand what happened. As far as I can tell, natgas and electricity pricing are as convoluted as the tax system, with "something for everyone" favors screwing it up. And look at the "deal" Davis struck with Edison. Why should Edison be guaranteed 11.6% profit??? No company in the real free marketplace is guaranteed anything. What should happen is either reregulation, with cost plus pricing, or genuine deregulation, with real competition in every aspect of natgas and electricity production and delivery. That's about as likely as tax reform. And, just to add the icing to the cake, "Prolonged strikes by Hollywood writers and actors would cost the local economy nearly $6.9 billion and push the region into an economic slowdown, according to a study commissioned by Mayor Richard Riordan." So LA would have electricity, but no show business to use it. Tsk. On the other hand, ROYL and CORV are doing great. Too bad about PYR.

To: Think4Yourself who wrote (3579)	4/21/2001 12:34:34 AM
From: Zeuspaul	Read Replies (1) \| Respond to of 23153

Yeah, THAT will prevent blackouts this summer. There is nothing that will prevent blackouts this summer...barring some major rain up north. California has made its share of mistakes...although I think you will find that many other state's deregulation laws were similar including holding end user rates constant and letting the wholesale price float. Many of these laws have been put on hold. Although I don't think Davis has handled the situation very well...IMO he has found the primary culprit. I believe it was the FERC that denied California's request for additional power plants when they were predicting increased usage several years ago...1995 ish. The FERC in its infinite wisdom declared it is the market that handles power planning...not the California energy commission. Now that the FERC has been proven wrong...the market has failed to supply sufficient juice...they stand aloof and blame California. It is the FERC's responsibility to regulate hence the R in FERC. It is their responsibility to ensure just and reasonable prices. By their own admission the California market is disfunctional. It only makes sense that they would step in and regulate the market until it becomes functional. Instead they make nonsensical ideological statements re there would be no incentive to build new power plants if there were any kind of caps. It seems a bit foolish on their part as the price the power generators receive has been deregulated for many years and they are not supplying the juice. A free market and not enough juice....are they blind? or are they in someone's pocket? Simply put the independent power producers have no intent nor will they provide sufficient power production capability to get us through times of drought. It doesn't make economic sense for them to do so and they are not a bunch of do gooders. Given the FERC defined dysfunctional market...why should California subsidize other states? The same NG that gets sold in Texas gets sold in California at highly inflated prices. The high California price enables the Texas firms to sell the gas in Texas at a reduced price...effectively subsidized by California. The FERC turns a blind eye and chants free market..free market. It looks like victory spoils to me....march in and rape and plunder...we have the pres on our side. A basic understanding of human nature can lead you to this conclusion and the facts are starting to point in that direction. When more facts come out I think you will find there is some monkey business going on with the NG pipelines to California. Do you really think higher prices will cure the problem in California? Not a chance. Higher prices will lead to the same or less juice but at higher prices. Higher prices won't make it rain and power plants don't just appear from no where. Actually LOWER prices would result in more juice. There is plenty of unused production capacity to meet current needs. The reason it is not being used is due to the higher prices that have caused economic havoc and the insolvency of some of the utilities. Producers simply don't want to produce if they won't get paid. Lower prices would increase the chances of firms getting paid. And it is the FERC's responsibility to ensure that juice is sold at just and reasonable prices....something it refuses to do. JMHO Zeuspaul