There were three key elements in the California deregulation bill that led
to disaster. First, the utilities that delivered electric energy were
forbidden from generating electricity. They were forced to sell off their
power plants. Second, they were not allowed to enter into long-term
contracts for electric energy from the suppliers. Instead, they could only
purchase power from the California Energy Exchange 24-hours in advance of
need. Third, the California Independent System Operator (the grid manager)
was allowed to purchase energy on the spot market on the day of need if the
utilities were not able to buy enough energy from the California Energy
Exchange the day before.
It doesn't take a genius to figure out that this is a system that was
designed to be manipulated by the out-of-state energy suppliers. All they
had to do was withhold power from the Energy Exchange, then sell it the next
day on the spot market at outrageous prices. Companies like Enron have made
enormous profits under this system.
Don't let them pull the same deal on you in New York State!
Mark
-----Original Message-----
From: Robert B Zannelli [mailto:Spinoza321@AOL.COM]
Sent: Saturday, March 31, 2001 11:58 AM
To: PHYS-L@lists.nau.edu
Subject: Re: Worrying about the long term (was Global Warming (NUCLEAR))
In a message dated 3/31/01 1:07:33 PM Eastern Standard Time,
mshapiro@EXCHANGE.FULLERTON.EDU writes:
The only good outcome from this is that folks will have to pay more
attention to energy conservation and alternative sources such as solar and
wind.
Mark Shapiro http://www.IrascibleProfessor.com
>>
Mark Thanks for the article. Here in New York we are in the middle of the
same madness. It hasn't been as bad as California but in the city of New
York
the electric bills have increased at least 50 percent over a very short
period. You might not be too surprised to know who were the corporate
underwriters of our new Republican Governor. Plenty of money made it to our
democratically controlled assembly also.