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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Hawkmoon who wrote (4097)	6/17/2001 5:42:14 PM
From: Yorikke	Read Replies (1) \| Respond to of 33421

Hawk, the important thing to remember is that the system was working, and with the help and urging of the private energy sector, the lawyers/politicians fashioned a bill that ruined 75 years of hard work. Informed industry leaders, like David Freeman, who ran LA Water and Power saw it coming and put the City of LA way out in front of the problem. We have productive capacity, forward contracts, saw limited price increases, and NO power outages of substance to date. The market didn't fail, it was hijacked. It happened in a Republican State Administration and with its support. This was a 'de-regulation' initiative supported by industry. They fell over themselves trying to get on board. In their greed they devised their own failure. Smaller energy producers are free to supply the net, and I believe they are paid market rates, but I am not sure on this. Near defunct industries like Wind Mills have received some play as a result of the gas price surges. I am all in favor of promoting smaller carriers and producers; but not at the health of the larger 'Monopolist' producers. The next 10 years are going to see a very high demand for increased capacity and infrastructure and weakening the major players is not going to make meeting these demands any easier. Right now all a lot of states are doing is trashing their distribution systems in the name of current dollar savings. These factors will combine to make a vast area of the country 'energy fragile'. Very soon now these short sighted decisions will begin to visit the problems of California on Y'all. When that does occur I'll perhaps be around to remind you how nice and warm it is out here during YOUR dark cold Winters of shortage. regards