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To: Ilaine who wrote (103121)5/18/2001 7:39:56 AM
From: yard_man  Read Replies (1) | Respond to of 436258
 
>>The part of the equation that doesn't seem to get enough attention is the fact that no one is going to risk capital without some assurance of return<<

I would replace assurance with "reasonable expectation" or "reasonable opportunity to earn a return." Shows how conditioned I was by my former life as a regulator ...

You are very right about risks -- and with the advent of open access and the volatility that came with it -- those financial risks become quite acute in 20 - 30 days of the year. That is something that is relatively new to the business ( since '97 or '98).

I hope that sometime we move toward time-differentiated rates for the residential consumer -- I think it is doable as the cost of bandwidth comes down, computing power becomes even cheaper.

Fiddling with financial arrangements while customers are given no price signals concerning these now huge swings in production costs (i.e. and esp. purchased power costs)-- just average rates -- it's all a bunch of political hype.