Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : IPPs and Merchant Energy Co.s -- Ignore unavailable to you. Want to Upgrade?

To: Quincy who wrote (212)	9/25/2002 8:09:07 PM
From: Oeconomicus	Respond to of 3358

The nature of electricity generation and its ease of manipulation makes it nearly impossible to allow market forces to keep prices in balance without proper government oversight. Bull. Electric utilities have historically been regulated simply because they were a "natural monopoly." The only part of the electricity business that remains a natural monopoly is the delivery of it to residential and some business consumers, and that's only because of the huge amounts of capital it would take to duplicate the networks of power lines. Generation is a highly competitive business. If it were a monopoly, or if the market were easily manipulated as you say, then all the stocks listed below would making new highs due to declining interest rates (based on fat dividends), not down 50-90%. As for California, some unethical traders and gas pipeline operators may have unfairly or illegally exploited the situation, but the root cause was a poorly designed deregulation scheme. Now, the California pols are exploiting a situation of their own making to get votes and retain their own power. California voters put them in office to begin with, so ultimately, they are responsible. JMO, Bob

To: Quincy who wrote (212)	9/25/2002 9:24:37 PM
From: Jerome	Respond to of 3358

OT***why anyone could maintain that my fellow Californian's deserved the crisis of 2001.? Califonia deserved the crises because they made up the dumbest set of rules imaginable. The rules that California made invited exploitation. In any rule making process would you really expect some bureaucrat making about 60 K a year to match wits with a team of business bookies trying to make millions...and become infuriated when the bookies win all the bets. JMO...Jerome