California Energy Crisis to Cost $71 Bln, Group Says

Bloomberg News ^ | Jan. 17 | Daniel Taub

[Ernest_at_the_Beach]

Santa Monica, California, Jan. 17 (Bloomberg) -- California's power-deregulation plan, which left the state's two largest utilities insolvent, will end up costing the state about $71 billion, or $2,100 for each resident, a consumer group said.

The costs include $11.3 billion from the state treasury to buy power on behalf of utilities owned by PG&E Corp., Edison International and Sempra Energy, the Foundation for Taxpayer and Consumer Rights said in a study released today. Those costs will rise to $19 billion when interest is added, the group said.

[Ernest_at_the_Beach]

Hello we have a number!!!

$71 Billion!

Whoops, I don't know if I can believe ole Harvey and his Foundation for Taxpayer and Consumer Rights !

[Ernest_at_the_Beach]

To find all articles tagged or indexed using calpowercrisis

Click here: calpowercrisis

[ken21]

el bumpo!

[Ernest_at_the_Beach]

Thanks for the bump!

[newzjunkey]

$2,100 for each resident

There goes your Federal tax cuts, Californians.

[Asclepius]

Rather, power producers withheld power to drive up prices, the group said.

Those evil corporations! When the revolution comes, I hope they're the first against the wall, man. When will we learn? The market simply doesn't work!

We just need to learn to share, damn it.

[grundle]

The government set price controls, and forced the utilities to sell electricity for a lower price than what they paid for it. This "buy high sell low" policy would cause any buisness to go bankrupt. These price controls, combined with a ban on the construction of any new major power plants for over a decade, plus a ban on long term contracts for the whoselsale purchase of electricity by private utilities, is what liberals, in their doublespeak, refer to as "deregulation."

[holman]

It's a foregone conclusion what the CA's exit strategy will be, even if they haven't fathomed it as of yet.

Merely do what it has naturally conditioned itself to do . . .

Default on the debt. Decry the Evile Texan and refuse the debt.

Or simply move the debt to a series of partnerships. Hey! It's within Generally Accepted California Accounting Principles!

Or load up the rich.

[Major Matt Mason]

Sounds like your taxes are going up, CA.

[scooby321]

Thats close to Enron's Net Worth at its High

[LasVegasMac]

PG&E's Pacific Gas & Electric and Edison's Southern California Edison became insolvent buying power for more than state law allowed them to charge customers.

With rules like that in place, no wonder Kalifornia is not the preferred business climate.

BTW, the power utility here wants a 20 - 25% increase in rates - to, "make up for the high cost of last summers prices."

Fight is on!

LVM

[quimby]

Whoops, I don't know if I can believe ole Harvey and his Foundation for Taxpayer and Consumer Rights !

You can believe harvey as much as you can believe any socialist.

[quimby]

Did i miss it or did the article fail to mention the name of harvey's group ? (It may be TURN). Seems like after using the group for a sensational headline, the least the author could do would be to mention the name of the group.

[quimby]

Woops, found the name. Sorry for the post.

[lewislynn]

The high cost of a grossly flawed "deregulation" scam......

[Joe Hadenuf]

With rules like that in place, no wonder Kalifornia is not the preferred business climate.

Given the fact that California is the 5th largest economy or Earth, up from 6th last year, I don't think we are hurting from lack of business.

However, to tell you the truth I wish there were a lot less business, which would mean less people. Maybe we can send some your way, that is if they don't mind the heat in Vegas. I personally don't like living like a lizard.

[Ernest_at_the_Beach]

The high cost of a grossly flawed "deregulation" scam......

On that, we agree!!!!!

[okie01]

"The foundation has said that it may use a ballot initiative to try to solve some of the problems caused by deregulation."

Harvey and the state of California are going to repeal the law of supply and demand, by golly.

[lewislynn]

On that, we agree!!!!!

Thank you!!!

[capitan_refugio]

Harvey Rosenfield has no credibility; but then again, when it comes to leadership, neither does Gray Davis.