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<tr bgcolor="666666"><td colspan=2 bgcolor="666666"><font face=Arial,Helvetica size=3 color=CCCCCC>LIBERTY AND DISCUSSIONS FOR ALL</td></td>
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<font face=Arial,Helvetica size=2>What is Libertarianism?</td></tr><tr><td bgcolor=FFFFFF><font face=Arial,Helvetica size=2>
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<b>California consumers fuming about electricity deregulation</b><br><font face=Arial,Helvetica size=1>Posted on Friday, August 04 @ 01:27:26 EDT
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<P>According to this <A href=http://washingtonpost.com/wp-dyn/articles/A32955-2000Aug3.html>Washington Post story</A>, electricity deregulation is turning into a disaster in California. Consumers' power bills have doubled and even tripled, rolling blackouts have hit San Francisco, and most of the state's power grid is operating in a state of emergency because of the shortage of power.</P>
<P>The story doesn't go into a great amount of detail. Would any California readers care to give us some insight into what is going on there?</P>
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<tr><td bgcolor="#333333" align=center><font face=Arial,Helvetica size=2 color="#FFFFFF">"California consumers fuming about electricity deregulation" | <a href="user.php3"><font color="#FFFFFF">Login/Create Account</font></a> | <B>4</B> comments</font></td></tr> <tr><td bgcolor="#CCCCCC" align="center"><font face=Arial,Helvetica size=2>
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<a name="34"><table width=99% border=0><tr bgcolor="#CCCCCC"><td width=500><p><b>Re: California consumers fuming about electricity deregulati</b> <font face=Arial,Helvetica size=2>(Score: 1)<br>by Brian_Carnell on Friday, August 04 @ 07:50:47 EDT<br>(<a href="user.php3?op=userinfo&uname=Brian_Carnell">User Info</a>) </font></td></tr><tr><td>The basic problem is that deregulating an industry is very complex and for the most part places like California haven't done it very well. I live in Michigan where we're in the process of deregulating electricty and a lot of the things that are causing problems in California are being debated here. <br>
<br>
One of the big issues, for example, is that of stranded costs (basically the utilities want to be compensated for inefficient power plants they bought in the past) -- in California the deregulation law establishes a regimen of transition costs payments that would have made costs rises even without the other problems. <br>
<br>
In Michigan, for example, we have state utilities that spent hundreds of millions of dollars on power plants that basically will never be used to generate significant amounts of energy for various reasons. As part of deregulation they want to be able to charge back to consumers the capital costs of these non-functioning plants. <br>
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Also the environmental/regulatory environment makes it difficult, especially in places like California, to build new power facilities. It's not like the utilities in California were running around building power plants and then just stopped when deregulation came. The last big power plant was built in California in the mid-1980s -- all that economic growth over the past 15 nears and not a single new major power plant. <br>
<br>
That's a recipe for disaster (for an idea of how bad it is in Calif., there was actually a proposal to build a hydro-electric plant near a large lake a few years ago and environmentalists showed up to protest that the plant's only discharge -- large plumes of water vapor -- constituted unacceptable pollution.)</td></tr></table><br><p><font face=Arial,Helvetica size=2 color=000000> [ <a href="comments.php3?op=Reply&pid=34&sid=27&mode=&order=&thold=">Reply</a> ]</font><p><ul><li><a href="comments.php3?op=showreply&tid=36&sid=27&pid=34&mode=&order=&thold=#36">Re: California consumers fuming about electricity deregulati</a> by LoyalOpposition <font face=Arial,Helvetica size=2>on Friday, August 04 @ 16:50:36 EDT</font><br><ul><li><a href="comments.php3?op=showreply&tid=37&sid=27&pid=36&mode=&order=&thold=#37">Re: California consumers fuming about electricity deregulati</a> by Anonymous <font face=Arial,Helvetica size=2>on Saturday, August 05 @ 14:03:21 EDT</font><br></ul></ul><hr noshade size=1></p><a name="38"><table width=99% border=0><tr bgcolor="#CCCCCC"><td width=500><p><b>Utilities must be regulated</b> <font face=Arial,Helvetica size=2>(Score: 1)<br>by skriptkitty on Sunday, August 06 @ 20:12:44 EDT<br>(<a href="user.php3?op=userinfo&uname=skriptkitty">User Info</a>) </font></td></tr><tr><td>The reason is that for too long they have been government-sponsored/supported/enforced monopolies and by now it is virtually impossible for there to be the free market competition motive to keep price/performance great. ISP's are the only utilities off the top of my head that I can think of that should be almost totally unregulated (they still should be restricted from selling stuff like lists of the sites you visit). But don't take me for a socialist because overall I support virtually all deregulation except for corporate environmental regulation.</td></tr></table><br><p><font face=Arial,Helvetica size=2 color=000000> [ <a href="comments.php3?op=Reply&pid=38&sid=27&mode=&order=&thold=">Reply</a> ]</font><p></ul><hr noshade size=1></p>
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