Here is an interesting article on California power by CERA.


---------------------- Forwarded by Gia Maisashvili/ENRON_DEVELOPMENT on 
08/29/2000 04:39 PM ---------------------------


webmaster@cera.com on 08/29/2000 04:42:01 PM
To: gia.maisashvili@enron.com
cc:  

Subject: A Crisis by Design: California's Electric Power Crunch - CERA 
Decision Brief




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CERA Decision Brief: Sent Mon, August 28, 2000
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Title: A Crisis by Design: California's Electric Power Crunch
Author: Makovich, Zenker, Mortizburke
E-Mail Category: Decision Brief
Product Line: Western Energy , North American Power ,
URL: http://www.cera.com/cfm/track/eprofile.cfm?u=4712&m=1329 , 
http://www.cera.com/cfm/track/eprofile.cfm?u=4712&m=1330 ,

Alternative URLs:
For North American Electric Power Clients: 
http://www.cera.com/client/nap/db/082700_14/nap_db_082700_14_ab.html
For Western Energy Clients: 
http://www.cera.com/client/ce/db/082700_14/ce_db_082700_14_ab.html
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The California electric power market is in crisis*critically short of 
generating capacity needed to meet summer demands, soaring power prices, and 
now the subject of a fierce political debate. Only four years ago when 
California embarked on an ambitious plan to deregulate its power business, 
this was hardly the projected path. How did this happen?

The current shortage, price boom, and political turmoil are an inevitable 
result of serious structural flaws that were present right from the start. 
The current problem comes down to this: the power market was designed to 
deliver power prices that were too low to support investment until a crisis 
occurred. Most people still do not recognize this serious design flaw in the 
California power market, and perhaps the greatest problem is that no one 
agrees on what went wrong. Current efforts to deal with boom prices and 
shortages simply by targeting the symptoms with price caps and emergency 
operating procedures are Band-Aid solutions that are likely to create even 
greater problems down the road.

**end**

Follow URL for complete report.

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CERA's Autumn 2000 Roundtable event dates and agendas are
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