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: Raymond Duray who wrote (273)	5/5/2001 10:55:07 PM
From: Zeuspaul	Read Replies (2) \| Respond to of 1715

It's nice to see another advocate of public power here on the thread. :) I believe in balance. I wouldn't want to see all public power anymore than I would want to see all private power. The mix should evolve over time. California's problem was that it decimated the existing working utility structure in favor of illusions of market juice. I can take away only one big lesson from the California fiasco. Deregulation has resulted in a market that is neither "free" nor fair,nor likely to do anything other than create a recession in the most vibrant state economy the world has ever known. I see a fatal flaw in the move to market juice...the market does not build in excess capacity. It wants to be lean and mean...just in time. Add hydro to the mix and you have a recipe for disaster. Hydro is dependent on the weather. The independent power producers will not prepare for power shortages due to droughts. If a shortage arises due to lack of rainfall the market's answer is higher prices....much higher prices. If the rest of the nation were to deregulate too California would be in pretty good shape. California can afford to outbid other states for power. Also California would not have to build its own power plants. In a free market for juice California would just pay the higher price and get their juice from out of state. As a ratepayer who has been told that our local electrical co-op is facing a rate increase of between 150 and 450% on Oct. 1, I find the steelworkers protestations to be a decidedly selfish and arrogant demonstration of the basest of human instincts. Especially in view of the instances where aluminum plant workers have been furloughed on full pay for the next year. And the feds think it is just a California crisis. At minimum there is a regional crisis. Zeuspaul