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To: Thomas M. who wrote (101880)	5/13/2001 8:16:45 PM
From: flatsville	Read Replies (2) \| Respond to of 436258

>>>However, it seems that the problems in California are entirely the fault of poor decisions made by government: - Poor planning for future capacity needs. - Poor understanding on the supply/demand outlook for natural gas - Poor planning for future infrastructure (the grid) needs. - A poorly designed privatization scheme (retail price caps with no relation to wholesale prices)<<< Entirely? Hardly. Take the process for receiving permission for adding/upgrading transmission infrastructure. When compared to receiving approval for new generation it's a cake walk. (It's becoming harder as rural property owners consistently tell companies to gfy.) Companies don't want to spend the money...just load the lines until they fail. They do not want the responsibility that comes with free or freer markets. Here's why-- On April 24, 1996, the Federal Energy Regulatory Commission (FERC) issued a final rule, Order No. 888,(2) in response to provisions of the Energy Policy Act (EPACT) of 1992. Order No. 888 opens wholesale electric power sales to competition. It requires utilities that own, control, or operate transmission lines to file non-discriminatory open access tariffs that offer others the same electricity transmission service they provide themselves. The second final rule, Order No. 889,(3) issued on the same date, requires a real-time information system to assure that transmission owners and their affiliates do not have an unfair competitive advantage in using transmission to sell power. It is expected that Orders No. 888 and No. 889 and other actions taken by State Public Service Commissions to promote competition in the electric power industry will result in increased demands for transmission services. IOW they don't want to spend the money (and haven't for some time now) knowing other companies do/will have open access to their lines...so much for responsibility, free markets and competition, eh? I'm not aware of any state government that has done anything other than encourage (and plead for) transmission cap ex spending. It's the other half of the equation to solving the problem of adequate supply and the part most consistently ignored. This is happening damn near everywhere...not just in California. New York and parts of the upper Midwest are in dire shape. >>>Restructuring takes thought, monitoring and time so everyone benefits.<<< >>Everyone does not have to benefit. If the only result of deregulating is that industry benefits, then it should be done.<< You'll have plenty of time to contemplate that statement when you're sitting in the dark some night or laid up in the hospital because the traffic lights at an intersection went dark during a rolling black out. Let me know if your change your mind. Me? I'll take slow, deliberate resturcturing any day.

To: Thomas M. who wrote (101880)	5/13/2001 9:26:46 PM
From: LLCF	Respond to of 436258

< However, it seems that the problems in California are entirely the fault of poor decisions made by government:> LOL, save your breath. DAK

To: Thomas M. who wrote (101880)	5/14/2001 1:28:55 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 436258

tom, a recent study showed that electric plant "maintenance" down time has been 4 times the norm. hmmmmmm... what is the probability of that happening due to random chance? i don't know what the variation is so i can't say for sure. however, really, really, really small should just about cover it. the power companies are manipulating the markets, imho. i see two scenarios... 1. collusion amongst electric companies. 2. legal manipulation of supply and demand due to serve the interests of the electric companies. the former is a crime. the latter is the result of legislative ineptitude or collusion. this is a big mess. maybe i ought to try and get an electric company job since they are so flush ;-)