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    The Good, the Bad and the Ugly
    Posted on Thursday, April 18, 2002 @ 21:43:00 GMT by vlad

    General Senate lawmakers effectively voted Thursday to reject an amendment to allow oil drilling in Alaska's Arctic National Wildlife Refuge, but it may not be the end of the proposal...

    It was a strong day for the power grid in the Northeast on Thursday. Unseasonably warm temperatures sent prices soaring - New York prices reached $1030.00MWh. As the weather cooled in the afternoon, so did the prices...East, welcome to the West!

    So what did cause the California energy crisis?...



    The generators who profited from the high prices in California point towards a regional shortage of capacity and the impact of environmental regulations. The California Independent System Operator (ISO), whose board was chaired by the generators until January 2001, agreed on this point. After the Federal Energy Regulatory Commission (FERC) reorganized the board, the ISO blamed the high prices on a combination of system problems and market manipulation. Detailed research indicates that the problem was a combination of market manipulation and operator failure. The most accurate description of events is that a series of perverse rules and incentives at the California energy market institutions managed to create shortage from surplus. Many of the facts may never be known. The California ISO was amazingly incurious about events until FERC changed the composition of their board in January. Forced outages among the generators were not logged, data were poorly and erroneously compiled, and what little information was available was classified as secret...

    As experiments with deregulation sputter, a new generation of municipally owned electric utilities is emerging...The electricity rebellion is spreading. Around California, a handful of cities are forming municipal utilities and dozens more are looking into it. In San Francisco, voters thwarted a power coup last November by just 500 votes, leading organizers to regroup for a second try. Meanwhile, a handful of Florida cities are looking at public power, as are cities in New York, Kansas, Michigan and Oregon.

    Read this interesting article in Governing Magazine, April 2002.


     
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