🚀 go-pugleaf

John Higdon wrote:
> It certainly does during off-peak periods. There is plenty of loose power
> during off-peak times and moderate-climate days. You may indeed end up
> paying your top-dollar amount during the tightest supply periods...but isn't
> that better than just paying "the sky's the limit"?

It depends.  "The sky's the limit" pricing has been going on, on
occasion during extreme peaks, for years.  These peaks generally don't
matter very much to the overall bottom line because they don't last very
long.  Governor Davis made headlines by revealing that the state paid
$1900/mWh last week.  But how much actual money was spent at that price,
compared to the billions spent at everyday (but still high) prices?  In
reality, not very much.  (The plant in question can only sell power a
*total* of 8-9 hours per year!) 

Everyday prices and the behavior of the marketplace during non-extreme
conditions are a lot more important than the shocker numbers that make
headlines.

> Does the Buyer's Cartel have to reveal today's "top price"? A supplier can
> quote the rate and the cartel can say "no thanks". Only if the sellers get
> together and talk amongst themselves about the rates being charged
> (otherwise known as "collusion") would they even be able to figure out
> today's cap. Tomorrow's cap is a new ball game.

It doesn't matter beacuse the "buyer's cartel" isn't going to happen
anyway.  In addition to violating anti-trust law, agreements between
states must be approved by Congress, which wouldn't go along with it. 
The idea was a trial balloon launched for political purposes and nothing
more.