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Wednesday, August 20, 2003

 

California Electric


What he said:
Whatever the sins of Enron and others in California, politicians and regulators committed the greatest blunders. Here's a short list: (a) Approval was slow for new plants, creating an electricity shortage; (b) as wholesale electricity rates rose, state regulators insulated consumers from the increases (this worsened the shortage, because low rates stimulated demand); and (c) the state's major utilities, forced to buy electricity from independent power producers, couldn't sign long-term contracts and had to pay rising daily prices. Absent all the errors, the crisis wouldn't have occurred.
Robert Samuelson in the Washington Post, via Vodka Pundit.


-- posted by Chuck at Wednesday, August 20, 2003 | E-mail | Permalink | Main | 0 comments