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
Geneva ohare limo service .. Lockport Chicago limo O’HareThe entry by telephone and cable companies into the Internet... Read More
I'VE ALWAYS ARGUED THAT ECONOMIC ILLITERACY IS VERY COSTLY.This is... Read More
Many in the World Media are quick to judge the... Read More
The recent scathing remarks by High Court Judge Richard Mawrey... Read More
All UAVs Need a Self Destruct BLOS DeviceWhat do you... Read More
Many people who are expert in the issue of the... Read More
I'm starting to feel squeezed by all the political correctness... Read More
I watch the TV news and I get angry. I... Read More
When this president's father was in the Oval Office, he... Read More
Year Item Price Rate of Inflation 03/80 Gasoline (per gallon)... Read More
Earlier this month, I heard President George W. Bush and... Read More
We presently have adequate sniffer devices in this country to... Read More
1. Why is it that no one seems to notice,... Read More
It appears we are having a terrible situation with the... Read More
When were the forms of media created? When did advertising... Read More
The civil war in Iraq seems to be much more... Read More
A visitor to Moscow would be immediately struck by the... Read More
I just got done reading a series of articles dating... Read More
Many Americans have children, fathers, mothers, grandparents, other family members... Read More
As more and more cities and states set up websites... Read More
I have witnessed a new era of security in the... Read More
The notion that local governments should have almost total monopoly... Read More
It appears the Feds are suing Elliot Spitzer over his... Read More
I, too, am saddened by the disaster in New Orleans... Read More
Regarding the de-regulation of energy, this is not such a... Read More
Biggsville wedding limo ..In the last Gulf War we saw thousands of enemy... Read More
The problem of poverty in America comes as a surprise.... Read More
Many people who are expert in the issue of the... Read More
It is widely known in the Homosexual Male Populations that... Read More
The use of religion is well-documented as a social engineering... Read More
Any chances for a country to be ruled by alternative... Read More
Since the United States Government is promoting the whistle blower... Read More
Is Starbucks a monopoly? It fits all the definitions. Does... Read More
The official working week is being reduced to 35 hours... Read More
This is the fourth and final article in a series... Read More
We know that the International Terrorists like the idea of... Read More
Many times our government regulatory over embellish problems in the... Read More
Federal Trade Commission Owes Industry and Entrepreneurs an Apology. The... Read More
An article in Information Week in January 14, 2002 discussed... Read More
One of my favourite pieces of music is the Sex... Read More
OH MAN!Here we go again. I guess now the "proof... Read More
Government budgets represent between 25% and 50% of he Gross... Read More
Absolute power corrupts absolutely. Men desire power. Give power to... Read More
The current field of political sciences is dominated by a... Read More
We are seeing some trade wars brewing as American trade... Read More
Are you happy with all this so-called security after 9-11?... Read More
They do not allow the criticism of the president in... Read More
Expected new applications for Mexican trucks to enter the US... Read More
Which companies are most affected by fuel? Who really bears... Read More
Britain has a proud tradition of valiant armed forces and... Read More
Political |