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Inconsistent to ask utilites to build more plants
Editor,
I have read many letters attacking the utilities for the present energy mess, and almost no letters pointing to those actors, and factors, that I think are significant. People have pointed to the fact that there have been no new power plants for years. Why should there be?
The 1996 deregulation act required that the utilities divest half of their thermal generation, and it hardly seems reasonable that they would be building new plants in California, when they are supposed to be divesting themselves of plants.
Nor would one expect the companies that buy the utility’s plants to be building new ones, since their capital is tied up in buying the old plants.
How about more utility conservation programs? Excellent idea - in hindsight, but very difficult to justify beforehand in excess of what the PUC allows the utilities to recover in their rates. Price hedging? Another excellent idea, but the PUC turned down the utility’s request last summer.
The issue of blame has skewed people’s thinking on recovery. People want the utilities and their stockholders to cover the short-fall, but I suspect that this is about as realistic as trying to squeeze blood from a stone.
It is also malicious, as the utilities and their stockholders have already taken a major financial loss.
Utility stocks have dropped precipitously, the utilities have defaulted on their contracts, their bonds are now classified as junk, they have suspended dividends, laid off employees and are talking bankruptcy.
When I see people leaving their landscape lighting on during the day I can only suggest that we look in the mirror if we want to see who is responsible for this mess.
The amazing thing in all of this is that our governor is still trying to artificially limit the price to the consumer.
I have done the conservation measures that are cost-effective, but I could justify more, and would therefore do more, if energy prices were higher.
One would hope that by now we would know enough to not repeat our past mistakes.
Robert Clear
Berkeley
