California Crisis Cost $45 Billion

Energy User New ^ | 02/25/2003

[Robert357]

The Public Policy Institute of California concluded that California's energy crisis cost the state as much as $45 billion over two years in higher electricity costs, lost business due to blackouts, and a slowdown in economic growth, according to a recently released study. The report concluded there was no single cause for the energy crisis, which peaked in the winter of 2000-01 and led to six days of rolling blackouts.

[Robert357]

While probably posted elsewhere, I doubt anyone posted a link to Energy User News. This was on the cover of the March Issue. Of particular note is the statement that there was not a single cause, those are code words in trade publications for it wasn't all power marketing company corruption and price gouging.

Now for the "Paul Harvey" version of the news....A big reason for the high cost and the blackouts is because of things done by the California Independent System Operator (Cal ISO). In particular among other games that Cal ISO played, was the fact that they created "fictional contracts" to clog up transmission lines and keep power from going north out of Southern California (being a prime cause to Bay Area blackouts) and raising prices throughout the region. If you would like some details go the following Article Click here for an interesting analysis of Contract C66, but don't believe everything you read.

There are lots of other examples of things that the Cal ISO, whose current leaders have been appointed by Gov Davis, has done that has jeopardized the California and West Coast Power system

I sure hope the FERC dresses down the Cal ISO when it comes to its conclusions later this month on the California request for refunds.

[Robert357]

Thought you might enjoy some diversion from war in Iraq speculation and news.

$45 Billion is a lot of economic impact in two years. It is a shame that Davis didn't take the 15 to 20 minutes it required to solve the problem. Oh well....

[TheDon]

Thanks Gov. Doofus.

[Dog Gone]

FERC needs to put Cal ISO out of business.

I suggest a ban on the importation of power into California until Governor Davis "sees the light."

[Amerigomag]

enjoy some diversion from war in Iraq

What war in Iraq?

Just kidding Bob. Thanks.

[Rippin]

Right, "no single cause" probably means that the stupidity of the legislature enforcing a corruption of the price system is responsible for $43 million and corporations taking advantage of the stupidity resulted in another $2 million.

[Amerigomag]

I suggest a ban on the importation of power into California

May I suggest enforcing the existing ban on the unregulated importation of immigrats.

California could realize an almost 20% decrease in demand.

[Republicus2001]

also drug testing of public officials - Davis appears to be either drunk or stoned

[Amerigomag]

Davis appears to be either drunk or stoned

Nope. He's pretty much a political whore with poor financial instincts and inept management skills.

By that I mean he will do almost anything for political gain and most of the things that he actually attempts are done rather poorly, including disguising the bribery.

On second thought. maybe it is the drugs.

[Robert357]

Right, "no single cause" probably means that the stupidity of the legislature enforcing a corruption of the price system is responsible for $43 million and corporations taking advantage of the stupidity resulted in another $2 million.

The truly sad part is that those are Billions with a "B" and not millions of dollars, but I think you have the right idea, even if you need to add a few more zeros (appropriately supplied mostly by politicians.)

[Robert357]

Thanks Gov. Doofus.---FERC needs to put Cal ISO out of business.

I'll drink to that!

[Publius6961]

California Crisis Cost $45 Billion

Gray Davis Incompetence Cost California Taxpayers $45 Billion

Inept crisis management is not leadership!

[NormsRevenge]

Bump

[Paul C. Jesup]

Am I correct in thinking percentage wise, after taking into account the differences in size, that Governor Davis is ACTUALLY OUT-SPENDING THE U.S. FEDERAL GOVERNMENT!? O_O

[Jimmy Valentine]

45 Billion? now, THAT is some serious bling bling!

regards,

[Rippin]

Thanks, meant "b" not "m"

[Ernest_at_the_Beach]

Calpowercrisis:

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[snopercod]

I thought FERC was going to close out this business by the end of March.

[snopercod]

Inept crisis management is not leadership!

But it got Davis re-elected...

[StayoutdaBushesWay]

Amazing, isn't it?