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OT but real news



  April 5, 2001
  CNET | Web Building Dispatch

  California's fake power shortage
  California's power crisis directly affects the technology economy, and there's
no solution in sight.
  I'm getting regional this week, but CNET is headquartered in California, so we
get firsthand
  experience with this power problem. From the ground level, rolling blackouts
don't seem so bad.
  Work shuts down for a couple of hours, small groups of people congregate in 
the
halls, cell phones
  light up, and you might have to reset the VCR when you get home.

  But when sites go down--especially retail sites--money is lost. Online 
consumers
are fickle enough
  that if they can't buy right when they're thinking of it, then they either
won't, or they'll go to another
  source. Business-to-business sites can usually withstand a two-hour delay, as
contracts and
  approval take a little longer. Considering the downturn in the economy, this 
is
not the time to be
  having a power crunch, and the really sad thing is that there's no good reason
for it.

  Unlike the power crisis of the '70s, we're not really low on power, despite
President Bush's
  exploitation of this situation as a reason to allow oil companies to drill in
U.S. national monuments
  and parks. California's power deregulation experiment set up a system where
power generators
  could charge excessive rates, and utilities would be forced to pay to maintain
supply. Many
  generators that haven't been paid by the cash-strapped utilities are 
withholding
supply. The state
  needs to help the utilities to pay their debts, while power prices have to be
capped in order to allow
  a reasonable profit margin for generators. And watch out for power 
deregulation
legislation in your
  own countries and states.

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