[ot] Apples and Oranges (was Re: [TheForge] steel prices)

[theforge@mailman.qth.net]

We do import power, lots of it from Canada in both megawatts and 
therms.   I think some even comes in from Mexico.  I worked quite a 
while with Canadian companies who were trying to come up with ways of 
reducing domestic consomption ( low rate of return) so that they would 
have the ability to sell more to the states. Hydro is cheap once the 
taxpayers have payed down all of the facilities. Utility rates did go 
down with dergulation in most states, as it was mandated in the 
legislation.   It has been clouded by gas surcharges added a couple of 
years ago and of course by Californias stupidity.  California had a 
voluntary program, switch only if you like.  The regulated utilities 
were forced to cut rates, forced to sell off their generation and 
prohibited by law from establishing any longterm contract for power for 
fear they would price fix.   Because the regulted utilities were forced 
to drop prices, and people didn't have to switch, california had the 
lowest uptake rate in the nation, less than three percent for 
residential customers. Retail power providers left the market because 
they couldn't compete, so there were no market forces to lower rates 
further.  Where the enrons of the world made their money was raping the 
existing utilities on wholesale power. 

Gabriel Cain wrote:

> Andy Vida wrote:
>
>>     You mean, in the way all the utilities said prices would
>>     go down with deregulation?
>
>
> That's not really a valid comparison.  A valid comparison would be if 
> we imported our power.  Apples to Oranges, and all that. :)
>
> Gabriel
>
>