"[EMAIL PROTECTED]" wrote:

> I just read the news and saw an interesting piece on the yahoo site.  
> "Richardson said he would order investor-owned wholesalers to sell power to 
> California at a price he considered fair."  Should Mr. Richardson be 
> determining price levels for California electric suppliers?  

Based on my informal analysis, such an action would help the 
politicians and the poor now, but would also defer the crisis to a 
later date.  The postponed crisis would be even worse than the one 
this winter.  Unless they want to subsidize CA power suppliers with 
increased taxes (yeah, that's popular!) the citizenry and pols will 
have to just suck it up.

For a purely political standpoint, a good interim solution might be 
to provide additional utility subsidies or tax credits to the poor 
for this winter, and then see how the situation plays out.

They're going to have new build power plants sooner or later, and 
it'll be interesting too see how high prices have to get before 
somebody relents.  I bet they'll revert to regulation wholesale 
before the environmentalists break.


Sourav Mandal


------------------------------------------------------------
Sourav K. Mandal

[EMAIL PROTECTED]
http://www.ikaran.com/Sourav.Mandal/

"In enforcing a truth we need severity rather than
efflorescence of language. We must be simple, 
precise, terse."

                      -- Edgar Allan Poe, 
                        "The Poetic Principle"





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