California Power and Commodity Markets

Excess capacity occurs in many industries, such as power, electricity, water, oil, mainframe time, bandwidth, etc. When deregulation came to the California energy market we saw an interesting thing occur. People would buy blocks of kilowatt-hours from the existing energy companies who made electricity. They had to make this available to anyone. So entrepreneurs Bought lots of it and then they sold it to others wishing to buy it. Commodity theory is fun to study, because it is everywhere in our civilization.

California energy companies sold the excess capacity at a bulk rate. They had to fulfill their contracts, even if they did not to have the energy. In the case of them not having the energy, they would have to go into the open market to other energy companies in other states within the grid and buy it for the prevailing price. Of course the price they would then the buying them for would be more due to the supply and demand of those other energy companies, also the problems in peaks and energy spikes. To make things even worse the energy bought needed to be transported, but it could not all fit thru the existing power lines, whoops? Rolling blackout, not so good.

The problem here is that you have a finite number of customers needing a fluctuating amount of energy, but when that energy need goes up as in summer and at the time of the blackouts in California it was a solar maximum, the 22 year cycle which brings hotter ambience earth surface temperatures caused people in California to require more energy for things like swimming pools motors, refrigerators, air conditioners and etc.

The problem still is not solved, we need more power plants in that region. Some clean coal burning plants and a few more nuclear power plants would sure help. Think about it, think about the energy our civilization needs.

"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs

---

Michael Moore: The Dumbest People on the Face of the Earth

"Fahrenheit 9/11" auteur Michael Moore recently fueled the epidemic of... Read More

Dole, Kemp, Trusting People

Many in the peanut gallery of society are so quick... Read More

Union Members Don t Be Fooled, Conservative Talkers Have it in for You

Ever wonder why labor unions consistently endorse democrats over republicans... Read More

Genetically Modified Plants Could Become Sentinels for the Military

As concerns grow over the threat of bioterrorism and weapons... Read More

Environmental Economics, Stream of Thought

Entrepreneurs can clean up the environment if we would let... Read More

Government Credit Card Abuse

Veterans Affairs Employees using government credit cards on personal items?... Read More

The Lemon Dance: Why Government Doesn?t Work

Former Senator, Daniel Moynihan, accurately summed up the situation when... Read More

Social Security Rant

As the Baby Boomer Generation continue to get older, one... Read More

Alternative to Land Mines in Middle East

With the recent threats from Bin Laden and Al Queda... Read More

NASA Budget Space Shuttle Thoughts

Regarding the issues with the Space Shuttle and the in... Read More

The Will To Fight for Islam

The more I study the dynamics of WWII the more... Read More

Are Illegal Mexicans Really Bad for America?

I've been thinking again. I know some of my readers... Read More

Workaholism, Leisure and Pleasure

The official working week is being reduced to 35 hours... Read More

The Looting of American Taxpayers Social Security Disability by Fraudulent Employers Pt. 1

For more than a decade, you the American taxpayer have... Read More

Ifs and VATs of Taxation in Macedonia - Should VAT be Applied in Macedonia?

To be justified, taxes should satisfy a few conditions:Above all,... Read More

The United States Government Owes Arthur Anderson 16 Billion Dollars

Since the court case was over turned against Arthur Anderson... Read More

Colonel Boyd on Limited War and Iraq Victory

In discussing the OODA Loop theory on Limited War by... Read More

The Transformation Of Political Science And The Rise In Crime Rates

The current field of political sciences is dominated by a... Read More

Shooting Around Corners with New Concept

Currently the United States has weapons, which can shoot around... Read More

Lets Make Some Things Clear about John Thune/Dan Nelson/MetaBank MetaGate

Let's make one thing clear: This Dan Nelson Automotive fiasco... Read More

Employment Legislation: Proposed Employment Law Changes - To Take Effect 1 October 2005

Proposed changes to the Sex Discrimination Act ("SDA") 1975 and... Read More

Stopping a Nuclear Bomb on a Hydrofoil

The US Homeland Security is worried about Hydrofoil or Skimmer... Read More

Rants by Lance: BRAC Committee Talks Irrelevant Completely

It is amazing we have so many men, who belong... Read More

911 Could Have Been Prevented, Was It Bush?s Fault?

September 11, 2001 could have been prevented. We could have... Read More

Enlightenment Experiments

Pierre Dupont de Nemours:After arranging the Armistice that ended or... Read More

Global Initiative of Electronic Commerce Taxation; Guiding Principles for Pakistan

1. United States of America (USA)In the United States, legislation... Read More

Paid Assassins

The civil war in Iraq seems to be much more... Read More

In Defense of the Feds Vs Katrina

I, too, am saddened by the disaster in New Orleans... Read More

On The Privatization of Social Security

Reform Social Security has been talked of Capital Hill for... Read More

Boston Bankers

Many people make a lot of money in war. In... Read More

A Modern Lite in the Third World

Americans pride themselves on being the best, that's a fact.... Read More

FTC Franchise Rule Making Sound and Fury in the Sand Box of Free Markets

Today we have a new franchise report from the Federal... Read More

Mexican Trucks in the United States; NAFTA Trade and Problems

Expected new applications for Mexican trucks to enter the US... Read More