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Essay / Research Paper Abstract
8 pages. This paper describes the effects of the energy crisis upon the State of California. How this energy crisis is being solved as well as how it affects the operations of new business in California are also topics covered in this paper. Bibliography lists 5 sources.
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8 pages (~225 words per page)
File: D0_JAcaleng.rtf
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how it affects the operations of new business in California are also topics covered in this paper. DEREGULATION Before deregulation, California electricity rates were thirty percent higher than
the national average. Experts believe that once more power plants are built these rates will decline. The next new power plant in California is scheduled for completion in
2003 (Elliott PG, 2001). Regulatory Analyst Jim Elliott, in an energy newsletter wrote that "when California Legislators decided to institute electric industry restructuring in 1996, it was believed by
many that the deregulated industry would offer consumers a way to make better choices and to have lower rates for their electrical and utility services" (Elliott, PG, 2001). "The center
of the controversy over the electric industry in California", Elliott explains, "is San Diego". He goes on to tell us that San Diego Gas & Electric has 1.2 million
customers who have seen their rates almost double from last summer. When SDG&E could not find a power plant that would be willing to sign a contract with them
for under five years they realized they were facing a problem. This was too long a time and was unacceptable in the eyes of SDG&E. "The result was
that SDG&E wound up contracting with a power plant at rates that were much higher than those of other energy distributors in California, such as Southern California Edison and Pacific
Gas & Electric Co., whose customers are protected from a rate increase until 2002 because of a provision included in the 1996 deregulation legislation. Some experts believe SDG&E is
the victim of a non-competitive electricity market. Still others feel that SDG&E was simply not aggressive enough in trying to find competitive rates" (Elliott PG, 2001).
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