Elektriciteitsmarkt in Californie

[Mark Giebels]

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Lijsters,

Dat de privatisering van de elektriciteitsmarkt in Californie niet echt
vlotjes verliep was voor iedereen al jaren duidelijk, vooral na de serie
stroomuitvallen in 2000/2001 en de daaropvolgende exorbitant stijgende
prijzen. Verantwoordelijk Governor Davis geeft het nu ook toe en wil
zelfs terug naar regulering door de overheid. Zie artikel hieronder.

Groeten,
Mark Giebels

www.sfgate.com

Electricity regulation needed, Davis says
He calls state's free-market power experiment a failure

Mark Martin, Chronicle Sacramento Bureau Saturday, May 31, 2003

------------------------------------------------------------------------
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Gov. Gray Davis said for the first time Friday that he favors abandoning
the state's experiment with free-market electricity and returning to a
more tightly regulated system for delivering power, calling energy
deregulation a great theory that doesn't work in practice.

The governor's comments come as the Legislature contemplates a bill that
would reregulate the energy markets and as experts warn that the state
must develop a cohesive policy that will encourage more power plant
construction or face future shortages.

Just this week, an unexpected heat wave forced the state's electricity
grid operators to sound the alarm that supplies were too low for
comfort.

In a wide-ranging interview with The Chronicle editorial board, the
governor also expressed new optimism that a deal is near between
Democrats and Republicans in the Legislature on how to repair the
state's budget deficit.

Republicans have insisted publicly that they would refuse to raise taxes
to plug the $38 billion hole. But Davis said written proposals are
circulating in Sacramento that suggest GOP support for some of his
budget in exchange for deals on other issues, such as fixing the state's
workers' compensation insurance system.

In an assessment of the energy crisis that has tarnished his tenure,
Davis outlined the flaws of energy deregulation and said he hopes to
sign legislation by the end of the year that would dramatically change
California's energy policy.

"We saw what a disaster deregulation was over the last two years," Davis
said. "And while in theory, scores of companies competing to sell you
electricity might reduce your rates, in reality they all want to drive
each other out of business and be the only suppliers in town, and then
your rates will go up."

Federally imposed price caps and contracts between the state and energy
producers quieted the storm in 2001, but California policymakers have
yet to enact long-term energy fixes. This year, however, several plans
have been proposed. The governor signaled Friday that he favors far more
regulation than the state has seen since 1996.


A MEASURE HE DIDN'T ENDORSE
Davis stopped short of endorsing a measure by three state senators --
including Senate President Pro Tem John Burton, D-San Francisco -- that
would allow utilities such as PG&E to build new power plants and would
require state regulators to set the profit margins for privately run
plants.

But one of the bill's authors said Davis has told him he would approve
the bill.

"He (Davis) said if you get that legislation to my desk, I will sign
it," said Sen. Joseph Dunn, D-Santa Ana. "It wasn't hesitant."

The bill is expected to be heard in a Senate committee next week, and
Dunn said he anticipates an intense fight to get the measure to the
governor.

In 1996, California became the first state to allow utilities to sell
off their power plants to private companies, who then sold electricity
in an open market. But poorly designed market rules allowed a few power
companies to take advantage of the state and drive up power prices 400
percent, Davis noted.

"For a commodity that is not essential to life, deregulation makes
sense. But for a commodity that is essential to life, it's too great a
risk to take," he said.

The fight over reregulating the energy market will come from power
companies and many big businesses, who favor an altered energy market
and say lawmakers and the governor will cause more chaos by changing
policy again.


'CALIFORNIA NEEDS STABILITY'
"There's no question that poorly implemented deregulation is bad," said
Jan Smutny-Jones, executive director of the Independent Energy
Producers, a trade group for power companies. "But California needs
stability right now to attract the investment we need to build more
power plants. Otherwise we're looking at another energy crisis."

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