This whole California thing, IMO, has been blown way out of proportion

[XMan]

Here is a very interesting, very concise article about the entire situation.

California power still not a bad deal

Here are a few choice tidbits from the article . . .

even after a 46 percent rate increase, electricity in the Golden State is still more affordable than in 14 other states.


So just a small cutback in consumption should bring a big drop in wholesale prices, says Faruqui. Higher retail rates should cut usage by 2.5 percent, which translates into a 24 percent drop in wholesale prices, he estimates. Rate increases are also expected to help increase supply. Uncertain over whether they?ll ever be paid, some of California?s smaller power generators have shut down, eliminating precious sources of power. Tuesday?s rate hikes should help get those producers back on line, according to Merrill Lynch energy analyst Steve Fleishman.

 

[Shantanu]

I think people are more worried about that fact that there's not enough electricity to go around, than the cost it'll take to fix it. Not only that, but it's created enormous bad publicity for the state that'll take years to overcome. Who would want to open up a new business/industry in CA now, when there's so much uncertainty?

 

[Hamburgerpimp]

We are the fifth largest economy in the world!. That's the problem.

 

[tm37]

Accually it hasn't. This is a much bigger problem this article lets on. I lived in san diego when the cost spike first hit. My bill went from $40/month to $175/month. I was able to pay it but alot of people who lived paycheck to paycheck got hosed. Many bussinesses were forced to close there doors and the grocery stores had to turn half the lights off. The article brings out the percent of average income spent on utilites that is bogus. They don't mention that CAAAL. Property is More expensive. Now the state wants bussinesses to cut usage another 50%. Californians are one of the MOST Electrical Conserving states in the Country. Conservation has gone on for along time. Turning of the computer at night will not cut 20% off the total usage.

California's economy is an intrical part of the nations total economic picture. This is a huge problem to those that saw the bill triple over 4 months as their USAGE WENT DOWN! Trust me this is a huge problem.

 

[Moonbeam]

I think it's the 6th largest economy, not the 5th.

 

[XMan]

Theoretically, though, if the deregulation had been done properly, the increase would have taken place slowly . . . you just got ten years of electrical rate hikes in one day.

 

[Thanatopsis]

The "have their cake and eat it too" lawmakers decided pricecaps were a good idea. That's what screwed you guys over.

BTW, I was just in SF this last weekend. No power outages that I saw. Nice place, IMHO. Doesn't BART take a huge amount of power to run its trains though?