Energy Questions: Re actual power of Feds to intervene and control

greenspun.com : LUSENET : Grassroots Information Coordination Center (GICC) : One Thread

Question #1: Exactly what mechanism allows the president and the energy dept. to order gas and electric suppliers to sell energy to California? How much clout is there behind this order? What are the likely or mandated repercussions if the suppliers refuse? Who exactly is ordered to sell? those suppliers who have existing contracts?

Question #2: What are the likely repercussions if a suplier breaks an existing contract (long-term or short-term contracts) to sell?

I guess the point of these questions is trying to explore where this whole situation (California and nationwide) could possibly be headed. The disparities that are starting to surface in rates across the country are beginning to generate (no pun intended) annimosity and a kind of local protectionism, which is understandable. We may end up with no choice but to nationalize the whole danged thing.

-- cat (cordesstudio@yahoo.com), January 25, 2001

Answers

Good questions. What is the Constitutional basis for the federal government involvement?

Why does every newswire article blame the California crisis on "deregulation"? Don't they know the word means free from regulation? Hardly the situation in which there is no restriction on wholesale energy prices but is on retail. A recipe for disaster.

In the fall of '99 those concerned about y2k were assured there was a 40% or so excess generation capacity and if there were an emergency the nationwide grid would come to the rescue with power from other areas. Where did all that power go in less than one year?

WRK Sedona

-- Warren Ketler (wrkttl@earthlink.net), January 25, 2001.


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