Energy Price Caps
Governor Davis of California has called for price caps on energy the State of California has to pay. In his mind, he believes that by setting price caps, this will decrease the cost of energy for commercial and residential users in his state. This could not be further from the truth. Setting price caps on the excess eletricity that power generators have to sell, will not result in cheaper electricity, but less electricity for Califonians and rolling blackouts on a regular basis.
Power generators with excess capacity will either sell the excess to regions that will pay what price they are asking, or can cutback on generating excess capacity. There will be less power to make up the shortfall that California is experiencing due to their lack of planning. It all goes back to the deregulation policy set by politicians in 1996, to win votes but not to insure the necessary power generation capacity instate.
Now these same politicians are blaming everyone but themselves for the problems they are experiencing. An idiotic policy of capping the price power distributors can charge their customers regardless of the cost of purchasing the power they distribute is what got California where it is today. It has been said, be careful what you wish fir you may get it. I suggest that the power prices BE capped and watch the chaos that ensues as California goes dark 24 hours a day region by region. Then whom would the Californis politicians blame?
5/31/01
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