California Energy Crisis: a report from Cato

Date: Thu Jul 12 2001 - 19:10:19 MDT

Just received this message from a friend. I haven't had a chance to read
the report yet, but I thought several of you might be interested in what
Cato has to say.

Cato has just published an account of the causes. It is awesomely

Altered some of my views; may aid yours too. Quotes from the summary:

    Virtually all the increase in wholesale prices can be explained by
  increases in production costs and overall scarcity. While there is
  some evidence of the existence of excessive generator "market power"
  (created not by the unfettered exercise of free markets but by
  poorly conceived regulation), it is relatively minor and responsible
  for only a small fraction of the price spike, if it exists at all.
    We find little evidence to support the argument that
  environmentalists are primarily to blame for the crisis. We likewise
  are unconvinced that, had the state allowed utilities to enter into
  long-term contracts with generators, the crisis could have been
  either averted or made less severe.

Check it out at


Chris Hibbert         It is easy to turn an aquarium into fish soup, but    not so easy to turn fish soup back into an aquarium.
                        -- Lech Walesa on reverting to a market economy. Yahoo Instant Message: ag_cth

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