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The 1996 deregulation law, Assembly Bill 1890, was passed and partially deregulated the California electricity market. Was California’s electricity market really deregulated? ... California lawmakers "restructured" the market actually adding more state intervention than ever existed before, and harshly disrupting what the current market. ... Presently, recent events in California clearly prove that the legislature’s plan has not worked as intended. Lawmakers in California forced retail price controls on the electricity industry; they determined when and how utilities could purchase power; they had discouraged any new competitors from entering the market; they also imposed more complicated moderations towards regulation; and they shaped many difficulties to building new generation plants and transmission systems. ... This energy crisis is a perfect example of the effects of what too much demand and not enough supply can generate on the market. ...
California’s energy crisis can be grouped broadly into three interrelated problems including (1) precipitous increase in wholesale electricity prices, (2) intermittent power shortages during peak demand periods, and (3) the deterioration of the financial stability of California’s three major investor-owned utilities (IOUs) – Pacific Gas and Electric (PG&E), Southern California Edison (SCE), and San Diego Gas and Electric (SDG&E). ... gov/cneaf/electricity/california/subsequentevents. ... They could not enter into forward long-term contracts for energy. ... gov/cneaf/electricity/california/subsequentevents. ...
This is exactly what California didn’t need but couldn’t control – price caps, which don’t work because they don’t increase supply and they don’t decrease demand.
Approximate Word count = 1196
Approximate Pages = 4.8
(250 words per page double spaced)
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