Article View: sdnet.general
Article #103Re: Outsider viewpoint of CA power crisis
From: David Robinson
Date: Wed, 23 May 2001 22:44
Date: Wed, 23 May 2001 22:44
27 lines
2121 bytes
2121 bytes
Jeffrey Siegal wrote: > > Tom Keener wrote: > > What I find curious is a market based on the _highest_ price for a > > commodity. > > Every business works that way. There is a market price for potatoes > which is the equilibrium reached in the marketplace between the highest > cost producer necessary to satisfy demand, and the highest price > consumers are willing to pay. That is not how the power market is structured. Assume the state needs 100 units of power, three companies bid: A: 50 units @ $0.10 B: 45 units @ $0.12 C: 5 units @ $0.20 As currently structured all 100 units are purchased at $0.20 giving A an unexpected profit of $5.00 and B $3.60. It is one thing for seller A to look at the market and see that C was able to sell at a higher price and raise his to $0.19 in hopes of getting more profit, it is another for the government to mandate the extra profit regardless of the offered price! -David
Technical Details
Message-ID:
<3B0C3D46.25DB4187@ebay.sun.com>Path:
arc1-ca.pugleaf.net!archiver1.google.com!newsfeed.google.com!newsfeed.stanford.edu!bloom-beacon.mit.edu!nycmny1-snh1.gtei.net!denver-snf1.gtei.net!news.gtei.net!namche.sun.com!news2me.EBay.Sun.COM!ebaynews1.Ebay.Sun.COM!not-for-mailReferences:
<9e1rc7$gdj$1@slb1.atl.mindspring.net> <3b0558ea.291284937@nntp.cts.com> <3B0567E7.76FB3EF1@quiotix.com>Show Full Headers
Complete Article Headers
X-Google-Language: ENGLISH,ASCII-7-bit X-Google-Thread: f824f,af5e5edc3039a6a2 X-Google-Attributes: gidf824f,public X-Google-Thread: 10b619,af5e5edc3039a6a2 X-Google-Attributes: gid10b619,public X-Google-Thread: 107d03,af5e5edc3039a6a2 X-Google-Attributes: gid107d03,public X-Google-ArrivalTime: 2001-05-23 16:02:17 PST Path: arc1-ca.pugleaf.net!archiver1.google.com!newsfeed.google.com!newsfeed.stanford.edu!bloom-beacon.mit.edu!nycmny1-snh1.gtei.net!denver-snf1.gtei.net!news.gtei.net!namche.sun.com!news2me.EBay.Sun.COM!ebaynews1.Ebay.Sun.COM!not-for-mail From: David Robinson <David.Robinson@ebay.sun.com> Newsgroups: sdnet.general,ba.general,la.general Subject: Re: Outsider viewpoint of CA power crisis Date: Wed, 23 May 2001 15:44:22 -0700 Organization: Sun Microsystems, Inc. Lines: 27 Message-ID: <3B0C3D46.25DB4187@ebay.sun.com> References: <9e1rc7$gdj$1@slb1.atl.mindspring.net> <3b0558ea.291284937@nntp.cts.com> <3B0567E7.76FB3EF1@quiotix.com> NNTP-Posting-Host: d-nwk16-169-196.ebay.sun.com Mime-Version: 1.0 Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-Mailer: Mozilla 4.77 [en] (Win98; U) X-Accept-Language: en