RE: Re: Energy deregulation

["David Shemano" <dshemano@xxxxxxxxxx>]

Eugene Coyle generously forwarded to me his report prepared for the American
Public Power Association concerning the expected consequences of
deregulating the electrical power industry, which I have been able to skim.
It is very compelling and I am in agreement of much of what it says in its
analysis. (I assume we disagree on the policy conclusions.)  But again, it
has nothing to with what is going on in California.

It appears to me, based on the "conservative" articles, that the California
electical power industry remains one of the most regulated industries in the
United States.  The ability to build a power plant is heavily regulated.
The ability to set retail prices remains heavily regulated.  The ability for
power providers to negotiate contracts to purchase powers from wholesalers
is heavily regulated.  The very market established by the deregulation
scheme is heavily regulated.

Assuming all of the above is true, and all that was "deregulated" was the
limited ability of retail providers to purchase power from wholesale
providers, how in the world is California a failure of "deregulation."  Why
isn't it a failure of the ability of central planners to selectively create
and utilize markets?

I think my question concerns more of rhetoric than substance.  Is your
criticism of the "deregulation" of the California energy market truly a
belief that the chaos is attributable to the lack of central planning and
regulation, or is it mere rhetoric in order to link the idea of
"deregulation" to the chaos?  Or is the language gulf between us so great
that you and I are using the word "deregulation" in totally different ways?

David Shemano


-----Original Message-----
From: owner-pen-l@xxxxxxxxxxxxxxxxxxx
[mailto:owner-pen-l@xxxxxxxxxxxxxxxxxxx]On Behalf Of kelley
Sent: Thursday, January 04, 2001 12:02 PM
To: pen-l@xxxxxxxxxxxxxxxxxxx
>Subject: [PEN-L:6658] Re: Energy deregulation


just for you....  came off of Declan McCullagh's Politics and Technology
List,

http://reason.com/ml/ml010401.html