I must have missed something, but........exactly how did the California energy crisis get solved?

One day, California was set to shut down and the next, (poof!) the story was over.

-- Anonymous, March 11, 2001

Answers

The shortages will start in mid-May and may also include areas where little plant has been built for increased demand. NYC is an obvious candidate. Texas is bringing enough capacity online because we were building for the growth even in the soft years before 1994.

1. Spring. Winter use of electrical heat comes to an end in a lot of areas. Demand begins to fade which enables higher allocations to Calif. That picture was clear by Jan. 1 for those who knew what the real supply /demand situation was.

2. Energy prices are down 25% across the board even with OPEC tweaking the markets every hour of the day. The decline in the price of Nat.Gas futures (now 1/2 the spike of winter but still 2X the range of the last 10 years) probably lead to dumping and declines in the spot market. Natural Gas (domestic) and domestic oil drilling has increased but is restrained by labor supply (oil field workers in Midland and the rest of W. Texas are scarce) and the hesitation of investors to do any but the most conservative of deals. There is plenty of money to invest but it is very careful because everyone remembers 1983-1998. That is a long time for a market to be down.

On the East Coast, when was the last time you heard Bleating from consumers about "heating oil shortages". The last speculation seems to be over with. March Futures for gas were far less than April's which are higher than May pricing. It can be assumed this is based on Dealer /Disty demand for Gasoline for the "May-Sept. Driving Season". OPEC is still playing it by ear.

3. The bills came to most consumers and they started turning off the 24/7 lights and unnecessary waste.

-- Anonymous, March 11, 2001

"Bleating", Charlie? When was the last time you had to suffer through a NE winter WITHOUT heat?

So easy to criticize from the "comfort" (sic) of Dallas.

-- Anonymous, March 11, 2001

Sorry.........a little too fast on the submit.......

Also so easy to assume that the problems are strictly the fault of the CONSUMERS (referencing your "24/7" remark). Oh no, it could NEVER be the fault of Big Oil and Inherent Greed.

Absolutely, positively NEVER.

-- Anonymous, March 11, 2001

It wasn't American "big oil" which has had to merge and acquire and cut costs for years because of OPEC.

It was and is always OPEC. But OPEC like the Japanese play American Consumers like a game boy. Lord forbid, we should want for anything. And in case anyone cares, I lived 49 years in the NE and when was the last shortage that resulted in blanket shortages of heat (Nature excepted)?

-- Anonymous, March 11, 2001

First order of sanity was too close down the ISO, i.e. them rigged auctions for short-term supplies.

Next was to enter into contracts the old way, without these ISO auctions. This maybe impossible for some to believe, but many suppliers need Cali way more than Cali needs them. Many have had relationships with Cali for decades. All the "we won't sell" was crap- extortion from the very same crooks who started the whole stupid-ass deregulation baloney in the first place.

Plans are now for the state to buy the transmission lines from SoCal Edison and PG@E. Something which could have been done a year ago at probably a tenth of the cost it will now take after all the wonderful benefits of deregulation----i.e. lining the pockets of Enron, Duke Energy and the like.

The FERC, the Federal Agency which overseas energy dealings for everyone has now ordered some token refunds of overcharges by the "suppliers". Call it a PR move, way too late, and way to small to do anything but help the PR campaign.

Anyhow in a nutshell here is what has happened Pam without having to know the details and it is as accurate as you will find. California got "out of control" for these deregulator crooks. It became a circus since these plans have little if anything to do with leveling and opening up markets. Deregulation is basically the COMPLETE opposite of what most think it is. It is about creating markets tailored and for the benefit of them and their cartels.

What California and the West are in now is called damage- control. The crooks, to continue on must now save face. They must save their "business model" for it has taken a terrible hit in California. Far too many of the sheep have awoken to what's up with the Degreg BS. Course with Dubya in their pocket, this mending process is assured of success. The Cat however is out of the bag and many will not be so easily manipulated like some California decisionmakers have been since 1996.

That is what is happening. Many other factors come into play, but it really is that simple. What has happened is state snactioned theft, plain and simple. Ain't over and this Degregulation bs will probably become THE issue for at least the next 5 years and will not be restricted to Electricity. In fact this mentality is behind everything from the Tax Cuts to School Vouchers, imho.

The way a few scumballs profit is to convince the sheep it is in THEIR interests to back these schemes. To wrap their plans in SOUND SOLID COMMON SENSE intiatives which even a cursory examination will reveal are basically the opposite of what we are told they are. With the media, the WH in their pockets, these fleecings fly almost without opposition. Helps also that they have neatly demonized any detractors as Socialist Pigs, i.e Liberals.

-- Anonymous, March 11, 2001