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
best cleaning company Highland Park ..How can any human being today, anywhere in this world,... Read More
California Attorneys and politicians are to blame for the energy... Read More
Our Hydro-electricity accounts for some 20% of our current needs.... Read More
With elections on the horizon and Blair looking tired and... Read More
A coffee shop conversation about a Great Country in Historic... Read More
There are no stupid questions, only stupid people. Ask an... Read More
In a move that rocked the online world and left... Read More
As you can see from some of our previous articles,... Read More
Kudos goes out to the George Walker Bush's Administration and... Read More
In response to Douglas Bower's article; Logic Class 101 Applied... Read More
Hello! Happy new year. May you live a long healthy... Read More
It is widely known in the Homosexual Male Populations that... Read More
As I read the papers and watch the news day... Read More
Rufus King: (Said to be the fifth most important person... Read More
In the event of that a threatening nation to the... Read More
With the world's largest oil and natural gas reserves, second... Read More
The predominant discussion in the Indianapolis media over the proposed... Read More
It appears we are getting a little bit of Sun... Read More
September 11, 2001 could have been prevented. We could have... Read More
Industrial Recruiting. The absence of a state income tax in... Read More
"Like humans void of soul or mind, they jeered and... Read More
What depth of blind insanity has inflicted itself upon Israel's... Read More
The official figures are staggering: 35% of the workforce -... Read More
Washington DC council member David Catania actually suggested that the... Read More
Recently in Maine, I talked with a gentleman and we... Read More
high-end home cleaning Winnetka ..Recent international wars and the often spectacular ways in which... Read More
The number of countries in the world at the moment... Read More
The paper industry in the US is hurting. Due to... Read More
In an effort to assist our political leadership it would... Read More
J. Edgar Hoover and LBJ used to enjoy watching Hoover's... Read More
Last Summer the Federal Trade Commission came out with a... Read More
"Like humans void of soul or mind, they jeered and... Read More
If we go hog wild towards the liberal agenda where... Read More
The UnbornWith all this cloning in the news one can't... Read More
The first reaction of economies in transition is a sharp... Read More
1) IS HAVING A DEMOCRACY MORE EFFECTIVE IN ADDRESSING POLITICAL... Read More
The recent first round of the Iranian elections somewhat resembled... Read More
(Note: This article was written slightly before the 2004 election;... Read More
In order to build a stronger, more self-sufficient America, America... Read More
After the dance the piper must be paid. To help... Read More
Recently in Professional Builder a cover article discussed how the... Read More
Dust from Deserts and Particulate ControlThe greatest contributor to particulate... Read More
The end of another election once again brings into focus... Read More
This is the fourth and final article in a series... Read More
When we go through periods of droughts we also have... Read More
Why is it that every single thing government does; it... Read More
The current field of political sciences is dominated by a... Read More
ACCREDITATION: - Scholastic regimentation from the post WWII period has... Read More
The gun control debate in America is a battle between... Read More
UNAUTHORIZED HACKINGThe term "computer hacking" traditionally describes the penetration into... Read More
Political |