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[cdn-nucl-l] Orwellian California electricity market
----- Original Message -----
From: Hans D Gougar/GOUGHD/CC01/INEEL/US <GOUGHD@inel.gov>
To: Multiple recipients of list ans-pie <email@example.com>
Sent: Saturday, December 09, 2000 9:36 AM
Subject: Re: Status 12/8/00
Doesn't anyone (outside this listserv) find it incredible that in the
California utility market
(1) demand is outweighing supply but the suppliers are going bankrupt, and
(2) it is still considered by most observers to be a 'de-regulated market'?!
I didn't take Economics in college but this really floors me.
Perhaps I just need to think like Orwell (War is Peace ...) if 'think' is
the appropriate verb.
>LOS ANGELES (Dow Jones)--Merrill Lynch & Co. (MER)
said Friday that California's three investor-owned
utilities may be forced to file for bankruptcy if
state regulators do not allow the companies to raise
their retail electricity rates.
In a research note Friday afternoon, Merrill Lynch
said the utility stocks of Edison International unit
(EIX) Southern California Edison, Sempra Energy unit
(SRE) San Diego Gas & Electric and PG&E Corp. unit
Pacific Gas & Electric are at "high risk." The note
said this was because the electricity prices the units
are allowed to charge their customers under a
state-mandated rate freeze are far below the soaring
wholesale electricity costs the utilities bearing.