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Pastimes : The California Energy Crisis - Information & Forum -- Ignore unavailable to you. Want to Upgrade?

To: DOUG H who wrote (899)	8/21/2001 8:53:09 AM
From: Zeuspaul	Read Replies (1) \| Respond to of 1715

This seems a contradiction, nevertheless, Sure it is a contradiction. Cheney's point was there is insufficient capacity to produce electricity no matter the price and therefore the only alternative is a significant number of blackouts. His conclusion has been proven wrong by history and hence his premise. Even if you find there are evil forces at work in the wholesale market (look at prices charged by INSTATE municipalities for the real gouging) I think you will find that is another myth perpetuated to draw attention from where the real money went. Look at the total number of dollars that went to the instate utilities and you will find it small in comparison. The instate utilities rates to their customers were at historic levels. Only marginal power from the most inefficient plants was sold to the state. A better comparison would include ALL power sold in state by the in state utility compared to ALL power sold in state by the independent power producers. Also look at the natural gas prices. Contract gas rates would have been reserved for the in state utility's own customers. The high priced gas coupled with inefficient plants results in high cost for the in state utility. Zesuapul