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
taxi from O'Hare Bismarck .. Lockport Chicago limo O’HareWe are currently seeing a build up in China of... Read More
Let's put the religious part of the debate for a... Read More
1. United States of America (USA)In the United States, legislation... Read More
IntroductionThe way one lyrist has written, "Hum logo ko samajh... Read More
The North American Trade Agreement (NAFTA) was implemented on January... Read More
Previously Senator Dick Armey and his staff in 2000 to... Read More
The official figures are staggering: 35% of the workforce -... Read More
Why President Bush should have his second term? The arguments... Read More
Last year a Maryland State Legislator whom I presume never... Read More
Iran's objection to ratifying the International Atomic Energy Agency's Additional... Read More
Recent international wars and the often spectacular ways in which... Read More
After arranging the Armistice that ended or settled outstanding issues... Read More
It appears the Feds are suing Elliot Spitzer over his... Read More
Many are condemning the latest GM Terminator seeds. Yet there... Read More
This is the fourth and final article in a series... Read More
I am noticing an increasing and alarming rate to which... Read More
An American soldier is taken behind enemy lines and brainwashed... Read More
Federal Trade Commission Owes Industry and Entrepreneurs an Apology. The... Read More
THE ECCLESIASTICAL GRANT:There are good things done by the hegemony.... Read More
The filibuster has been a tool available to U.S. Senators... Read More
The more I study the dynamics of WWII the more... Read More
Dust from Deserts and Particulate ControlThe greatest contributor to particulate... Read More
All UAVs Need a Self Destruct BLOS DeviceWhat do you... Read More
In the event of that a threatening nation to the... Read More
In typical bureaucratese, the pensive EBRD analyst ventures with the... Read More
Granger Lincoln Stretch limo rentals ..It is a law that we register deadly weapons with... Read More
As the death toll in the avalanche-hit Jammu and Kashmir... Read More
Aspartame activists are constantly being attacked because all data are... Read More
The American Dream is the promise to have it all... Read More
Freedom is in the eyes of the beholder. In Communist... Read More
The Connecticut Conference of Municipalities (CCM) is interested in the... Read More
As the Baby Boomer Generation continue to get older, one... Read More
I just got done reading a series of articles dating... Read More
Our Airports have excess capacity, which is not being used... Read More
I always have to remember to take a deep breath... Read More
I am noticing an increasing and alarming rate to which... Read More
Proposed changes to the Sex Discrimination Act ("SDA") 1975 and... Read More
Recently scientists have been watching the exponential growth of marine... Read More
Pierre Dupont de Nemours:After arranging the Armistice that ended or... Read More
Down The Bush and BlairBy now everyone, except us, is... Read More
Well many have complained that the FBI and CIA dropped... Read More
The UAV, Unmanned Aerial Vehicle is hear to stay and... Read More
It is amazing how the Federal Trade Commission has destroyed... Read More
I am not an African-American. Don't call me an African... Read More
Fifteen hours is a tremendous barrier. It is the obstacle... Read More
1) IS HAVING A DEMOCRACY MORE EFFECTIVE IN ADDRESSING POLITICAL... Read More
Sodomy is against the law, yet goes on every day... Read More
The head of the Club of Rome has said that... Read More
The original vulgarity was bylined: ?The Constipation of America's Mid-East... Read More
THE ECCLESIASTICAL GRANT:There are good things done by the hegemony.... Read More
Political |