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Re: CA Electric Deregulation - Tom's Comment
This is off topic but it might prove educational.
Tom Barr said, in part:
<< As a customer in CA that was raped by Enron and this crap
about privatization of public utilities(that we owned) that are handed
for next to nothing to corporations(please look into this), I'm far more
worried about what the federal government does with the billions in tax
money and corporate insider deals than that >>
To set the record straight and to avoid spreading misinformation, let it be
known that deregulation of the electric energy industry is alive and well in
PA and other states. It didn't work well in CA for a lot of reasons, a major
one being that the elected government of that great state established too
many rules that restricted the ability of the investor owned utilities to
respond rapidly to changing market conditions, such as occurred during the
power shortage in 2000/
Among other things, the rules required that participating companies sell
their generating capacity, buy all of their electrrictiy from a state
monopoly, CalPX, and thus not be able to enter into long term contracts, a
standard way of reducing the effect og temporary supply shortages. The
companies also had rate caps established, which caused them to have to sell
the electricity that they bought at a loss, forcing them into bankrupcy and
increaing the reluctance of suppliers to do business with them.
Other causes were the failure of CA to build enough generating capacity to
meet population growth and the overreliance of hydropower from the north to
make up the difference.
In the final analysis, the people of CA are responsible for electing as their
representatives people who are beholden to an outmoded, leftist philosophy.
Not Enron, nor George Bush, the free enterprise system, or the trilaterists.
As Pogo once said, "We have met the enemy and he is us".
More about this can be read at the EIA site at