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To: Carry_Okie
Best I can tell, the Schwarzenegger plan isn't going to deregulate pricing, except for commercial users who can opt out of the system.

The problem with that is that there is no incentive to opt out unless they're getting a lower price than the rest of you are stuck with. And you are stuck. Gray Davis committed California to long-term contracts and that power has to be delivered to somebody. I suppose California could re-sell the power at a loss if all consumers were allowed to opt out, but that would only add to the state budget problems.

The state should never have become involved in purchasing power and entering into long-term contracts. That decision not only was financially folly, but greatly complicates any attempt to achieve deregulation. I think Arnold should focus on creating more supply, and worry about deregulating prices (and even direct access) later.

80 posted on 11/03/2003 11:56:26 AM PST by Dog Gone
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To: Dog Gone
Best I can tell, the Schwarzenegger plan isn't going to deregulate pricing, except for commercial users who can opt out of the system.

I sure hope so, especially for those with potential co-generation capability.

And you are stuck. Gray Davis committed California to long-term contracts and that power has to be delivered to somebody.

Don't blame me, I voted for McClintock. ;-)

I think Arnold should focus on creating more supply, and worry about deregulating prices (and even direct access) later.

Yup. We'll see what he does, but given his political affiliations, I am concerned.

81 posted on 11/03/2003 12:11:01 PM PST by Carry_Okie (The environment is too complex and too important to manage by politics.)
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