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Article #98Re: Outsider viewpoint of CA power crisis
From: John Higdon
Date: Thu, 24 May 2001 07:25
Date: Thu, 24 May 2001 07:25
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2292 bytes
in article 3B0C3D46.25DB4187@ebay.sun.com, David Robinson wrote: > 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! What should possibly happen is to take A and B at $0.12 and tell C to take a hike. That is a perfectly legitimate action. C can take the $0.12 or just go fish. Yes, we are short five units and we might have to shed some load for a short period, but we have greatly influenced the market price. -- John Higdon | Email Address Valid | http://www.anntec.com/ +1 408 264 4115 | Silicon Valley, CA | FAX: +1 408 264 4407 Cheap, provincial San Franciscans can call: 415 428-COWS
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X-Google-Language: ENGLISH,ASCII-7-bit X-Google-Thread: 10b619,af5e5edc3039a6a2 X-Google-Attributes: gid10b619,public X-Google-Thread: f824f,af5e5edc3039a6a2 X-Google-Attributes: gidf824f,public X-Google-Thread: 107d03,af5e5edc3039a6a2 X-Google-Attributes: gid107d03,public X-Google-ArrivalTime: 2001-05-24 00:31:52 PST User-Agent: Microsoft-Outlook-Express-Macintosh-Edition/5.02.2022 Date: Thu, 24 May 2001 00:25:30 -0700 Subject: Re: Outsider viewpoint of CA power crisis From: John Higdon <no-spam@RadioMonopoly.com> Newsgroups: sdnet.general,ba.general,la.general Message-ID: <B7320579.3E2AA%no-spam@RadioMonopoly.com> References: <9e1rc7$gdj$1@slb1.atl.mindspring.net> <3b0558ea.291284937@nntp.cts.com> <3B0567E7.76FB3EF1@quiotix.com> <3B0C3D46.25DB4187@ebay.sun.com> Mime-version: 1.0 Organization: Green Hills and Cows Content-Type: text/plain; charset="US-ASCII" Content-transfer-encoding: 7bit NNTP-Posting-Host: 131.161.250.162 X-Trace: 24 May 2001 00:25:36 -0800, 131.161.250.162 Lines: 27 Path: arc1-ca.pugleaf.net!archiver1.google.com!newsfeed.google.com!newsfeed.stanford.edu!news.kjsl.com!news.announcetech.com!131.161.250.162