After looking at the difference in wholesale market prices from a
year ago and today, I find it extremely hard to believe that it is
the result of fair players responding to natural market forces.
The base prices have, in the course of a year, jumped from $20-$60
per megawatt-hour (MWh) to $180-$420 / MWh. In no way has demand
increased by 600%, nor has supply decreased to 17% of its former
capacity in the last year, yet the prices increased by 600%-700%
I understand it's more complex than that, but a price increase of
600%-700% anywhere else requiress pretty drastic explanations,
none of which are being offered. So far, the only believable
explanation is price gouging.
And that's just looking at the unconstrained prices. The final
price paid can increase due to miscalculation of the load
requiring reserve power to be called up (which has its own,
much higher priced, market).
The market electricity prices in CA can be found at:
http://www.calpx.com/prices/index_prices_dayahead_trading.html
-- Matt Grimaldi
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