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


Free Quran in All Languages

Free Tafsir Books

How Senator Sarbaines and Oxley Destroyed America

You have probably heard of the Sarbaines Oxley Law (SOX)... Read More

Mental Masturbation of FTC Franchise Rule Report

Please read through this quick thought and discussion as if... Read More

New York Lawyers; Vindictive Government Prosecutors

We all know Elliot Spitzer is going to run for... Read More

UK Elections on the Horizon

With elections on the horizon and Blair looking tired and... Read More

The Civil War - FOGC

Thomas Jefferson wrote a letter to Lafayette in 1823 that... Read More

The Protocols of Sion #1

There is a lot of debate about who made the... Read More

The Dawn On The Nile Valley Has Secrets To Tell! (2)

Submiting the Criminals to The ICC!Everybody concerns about justice in... Read More

Road Map Wont Work Cause PA Are Liars

The US-backed Road Map peace plan had no real chance... Read More

Is The Bill Of Rights Necessary?

The Bill of Rights to our Constitution caused -- and... Read More

Is it just hubris, or ...?

In what the Americans love to describe as the war... Read More

Think You Dont Need A License for A Wireless Microphone? Think Again

Believe it or not, every theatre, church, or Britney Spears... Read More

The Cost of the COLD WAR

Many people who are expert in the issue of the... Read More

Cloaking Giant Airships is Possible, Why Stop There?

We know we can cloak a giant airship from those... Read More

Iranian Elections - Roadmap To Continued Apathy

The recent first round of the Iranian elections somewhat resembled... Read More

NASA Budget Space Shuttle Thoughts

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

Religion, Wars and Civilization

Many are quick to point out the benefits of religion... Read More

Smelter Closures In America Hurt Our Industrial Output

The United States is losing its industrial capacity quite rapidly.... Read More

When Political Correctness in NOT a Virtue

The other day I was sucker punched, hoodwinked, bamboozled, had... Read More

Image is Everything in Redevelopment Projects

Revitalization Downtown projects are all the rage in fact the... Read More

What Did You Do In The War Daddy?

This is the first of a series of four articles... Read More

China has the Answer to Environmental Dead Zones

Recently scientists have been watching the exponential growth of marine... Read More

The Route to Democracy

Fifteen hours is a tremendous barrier. It is the obstacle... Read More

Bureaucracy Suffocating the Flow of Transportation

We are slowing the transportation flows of our civilization by... Read More

Liberalism ? A Mark Too Low A Price Too High

After the dance the piper must be paid. To help... Read More

Council of Six

The head of the Club of Rome has said that... Read More