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\r\n<\/b>The long term energy contracts revealed by the LA Times<\/i> \r\nlock in the energy crisis for another ten to twenty years. \r\n <\/p> <\/p>
\r\n \r\n <\/td>\r\n <\/tr>\r\n <\/table>\r\n\r\n <\/td>\r\n | \r\n \r\n\r\n<\/b> The energy crisis isn't over. The long term energy contracts revealed \r\nby the LA Times<\/i> lock in the energy crisis for another ten to twenty \r\nyears. Despite the fact that power production plus a fair profit costs \r\nabout $20-$35\/Mwh for an average plant, the state negotiators have \r\ncommitted ratepayers to purchasing power for as much as $154\/MwH for \r\ndecades. Not only is the average price of the contracts (ranging from \r\n$60-$100\/MwH per year) more expensive than power in previous years, but \r\nit is actually more expensive than power costs today on the \"market,\" \r\n(see below). Unless these contracts are invalidated or abrogated by \r\nthe state, we'll spend the next decade or two watching ourselves get \r\nripped off by the energy bandits who got the deal of the century \"back \r\nin the ol' days, round about the energy crisis of 2001, sonny.\" <\/p>\r\n\r\n \r\n <\/td>\r\n <\/tr>\r\n\r\n \r\n\r\n \r\n\r\n\r\n \r\n \r\n \r\n
\r\n\r\nFor the next decade, at least, we are slated to pay three to five times \r\nmore per megawatt-hour.\r\n <\/b><\/p>
\r\n \r\n <\/td>\r\n <\/tr>\r\n <\/table>\r\n\r\n <\/td>\r\n | \r\n \r\n\r\n<\/b> Just compare the contracts to prices in previous years:<\/p> \r\n- On May 15, 2000 power sold for a weighted average price of $31.01\/mwh and ranged that day from $10.35-$39.98\r\n<\/li>
- On January 16, 2000 it sold for a weighted average price of $28.61\/mwh \r\n<\/li>
- August 15, 1999 : $22.41\/mwh<\/li><\/ul>\r\n\r\n
It is the same power. It comes from the same plants. But for the next decade, at least, we are slated to pay three to five times more per megawatt-hour. For the ratepayer it means the recent 49% rate hikes are here to stay, with more to come.<\/p>\r\n\r\n The Big Blink?<\/p>\r\n\r\n \r\n <\/td>\r\n <\/tr>\r\n\r\n \r\n \r\n\r\n \r\n \r\n \r\n
\r\n\r\nLast week, the \"market\" price collapsed from around $300 to as \r\nlow as $20, and not because the weather changed.\r\n\r\nCall it Regulating by Threat.\r\n\r\n <\/b><\/p>
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\r\nNo, the energy crisis is not over, and\r\nwon't be, until California regains\r\ncontrol of its electricity supply.\r\n\r\n <\/b><\/p>
\r\n \r\n <\/td>\r\n <\/tr>\r\n <\/table>\r\n\r\n\r\n <\/td>\r\n | \r\n \r\n\r\n<\/b> The fact that the robber barons will be picking our pockets for a \r\ngeneration (if these contracts hold up) does not mean that the energy \r\ncompanies aren't running just a bit scared. Last week, the \"market\" \r\nprice collapsed from around $300 to as low as $20, and not because the \r\nweather changed. The energy companies insist that \"The market is working!\" \r\nThat's their explanation. Gee, we think the suddenly reasonable pricing \r\nmight have more to do with (1) US Justice Dept. broadening its \r\ninvestigation of natural gas manipulation by El Paso and (2) issuing \r\nsupbpoenas of wholesaler Williams for conspiring to limit plant \r\nconstruction in California, (3) Attorney General Lockyer convening a \r\ngrand jury to issue indictments, (4) passage of windfall profits tax \r\nbill by Cal. Senate, (5) Gov. signing bill to create state public \r\npower agency, (6) threats of plant seizures, and (7) US Senate, in \r\nDems' hands, pushing wholesale price control legislation. You might \r\ncall it Regulating by Threat.<\/p>\r\n\r\n No, the energy crisis is not over, and won't be, until California \r\nregains control of its electricity supply. Like outlaws in the Wild West, \r\nthe energy companies see the Sheriff coming, and they're headin' for the \r\nhills. They'll lie low for awhile, but unless they're hunted down and \r\nbrought to justice, they'll be back. You can bet on it.<\/p>\r\n\r\n The Fed's plan is lousy.<\/p>\r\n\r\n\r\n \r\n <\/td>\r\n <\/tr>\r\n\r\n | \r\n \r\n\r\n \r\n \r\n \r\n
\r\n\r\nEven FERC is thinkin' o' blinkin'. Unfortunately, their plan still \r\nleaves us with ridiculously-over priced electricity. \r\n\r\n <\/b><\/p>
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<\/p><\/td><\/tr><\/table><\/td><\/tr><\/table>\n","contact":"","link":"http:\/\/www.ratepayerrevolt.org","address":"","phone":"","parent_id":0,"mime_type":"text\/html","summary":"California's long-term contracts lock in the energy crisis for another ten to twenty years.","numcomment":0,"fileurl":"\/uploads\/2001\/06\/energy_ftcr_53.htm","filesize":"17.4 kibibytes","article_url":"\/news\/2001\/06\/7421.php"},"attachments":[],"comments":[]} |
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