Quote:
Originally Posted by Crazy Flamer
Actually, a large portion of the industry is still regulated. Transmission and distribution of both electricity and natural gas is regulated. That's where the majority of infrastructure is. And it will stay this way.
The problem California had was that they deregulated their whole industry. So there were power companies that started to build their own power lines and it completely messed with the grid, causing brownouts and blackouts. We won't see that here.
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Come on, that's simply not true. The whole "deregulation" in California was that the companies could sell electricity to neigbouring states at higher prices. And as yads said, retail prices are still regulated.
Another thing to consider that eventhought the population of California grew (as did the economy), "green laws" prohibited building coal and nuclear powerplants. So the state government not only fixed prices but it artifically lowered the supply. And the blackouts were a result of that.
So the state government caps retail prices, thus removes incentives to build powerplants, and not only that it forbids companies to build coal/nuclear powerplants too. Shortages come next and yeah, that's a total failure of "deregulation."