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On Wednesday 21 March 2001 17:26, you wrote: |
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> On Wed, Mar 21, 2001 at 01:57:31PM +0100, Philippe Namias wrote: |
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> > Here in France we don't have any electricity/gas problem as it's a state |
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> > company. They have the monopole so there is no choice here but i only |
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> > paid 42$ by month for electricity. |
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> |
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> In principle and practice, there is nothing wrong with electricity being |
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> provided by private companies. |
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|
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I agree with you the principe of concurrency is good for the market/consummer |
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so i hope they will be soon other electricity company in France . |
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But what i don't understand it's why the electricity company didn't ring the |
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bell sooner. |
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I think that this kind of company are able to predict in a certain way the |
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volume of electricity needed , so why they don't alert the State Of |
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California of this. |
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Because now if they are allowed (in Calofornia or any state close to) to |
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build a power plant it will take years to build. |
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So i think that your are just at the beginning of the problem? |
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|
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PS: If you want candle i can send you:) |
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|
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|
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> The problem in California was due to poor |
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> government regulations. Here's my understanding of what went wrong: |
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> |
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> The state of California passed a law that the electric companies can charge |
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> no more than X dollars per kW (no exceptions). Of course, this seems like |
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> a good idea because it appears to protect consumers. But then, the cost of |
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> *producing* the electricity rose to above this amount. This happened |
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> because it is nearly impossible to build a new power plant in California |
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> due to environmental regulations. So even though California uses more |
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> power every year, they were unable to expand their production capacity to |
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> meet demand. It gets worse. |
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> |
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> Due to the price limit on electricity, the utilities couldn't pass the |
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> additional expense to the Californian consumer. By law, they had to charge |
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> X dollars per kW, which meant that they were *losing* money. So, they |
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> tried to borrow money to to maintain their power supplies and even attempt |
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> to build new ones, but no one would lend them money (since the loan people |
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> knew that the utilities were in a no-win situation). So, by law, |
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> California was forced to buy tons of gas and electricity from neighboring |
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> states, dramatically raising the cost of electricity and gas in the |
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> southwest. |
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> |
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> Again, there's no problem with private utilities. Competition will keep |
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> the price low, usually much lower than government-run utilities. The |
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> problem is when the government sets up impossible-to-follow rules for the |
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> utilities without understanding the consequences. Then, the utilties are |
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> forced to do stupid things (by law) and things like this happen. |
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> |
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> It's as if I asked you to create new ebuilds, but I insisted that you |
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> couldn't use your hands because you might get a repetive stress injury. To |
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> the uninformed, this sounds like a good rule (protecting you from harm), |
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> but in practice it means you need to type with your toes! |
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> |
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> Best Regards, |