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

To: Morris Catt who wrote (987)	10/3/2001 2:43:18 AM
From: Zeuspaul	Respond to of 1715

I happen to think that the state's (CA)very late start in writing long term supply contracts contributed heavilly to the distortation of the situation and when the state finally did enter into contracts that the state would overcommit. Late start? California had long term contracts. Long term contracts were abandoned with the move to market priced juice. Power sold in long term contracts is power removed from the market and we all know power is best sold in the market :) California wanted pure market juice and that is what it got.....including a lesson in the benefits of market juice...ie less juice at higher prices. The RETURN to contract juice is what saved California. It is far better to over commit in long term contracts than to under commit. Zeuspaul