Deregulation
Deregulation is the elimination of regulated rate tariffs on energy that is supplied. Deregulation ultimately spreads the risk of an energy crisis amongst multiple companies in a specific region then on one monopoly company. What it boils down to is, big money. Whether it is a natural gas company or a supplier of energy, the main goal is to make profit. Over the past years in California, it can be seen that many energy suppliers have been working to bring down the cost of making and providing energy while staying in line with the deregulation mandates, in doing so, they have made it almost impossible for themselves to make economic profit. There are many reasons why electricity deregulation happens, and California has seen just about all of them. Many have put their money on the deregulation plan of the state. It is believed that this plan that was signed in 1996, by former Governor Pete Wilson, holds most of weight of the problem. The plan was intended to bring more competition into the state's electricity industry. At the time the plan was signed, California's major utilities sold several of their power plants to a number of electricity wholesalers. But the plan did not give power suppliers much of a motivation to inc
In the past ten years, California has not seen any new major power plants being built. Currently, the state has four new plants underway, and plans for a fifth. But, out of the five new plants not one will be ready for operation by the summer season. The summer season is the season in which California experiences its highest consumption of energy. Not all of the electricity that is consumed in California is produced there. There are many out-of-state suppliers that provide electricity to the state. Twenty-five percent of the states electricity daily demand is imported from other states. The actions of the out-of-state suppliers have also assisted in the California energy crisis. These companies have become hesitant when it comes to selling power to the state's utilities. The companies are fearful that the utilities will not be able to pay for the power they supply. rease their capacity as the demand for electricity increased in the state. And, the demand for electricity has been increasing. California's demand for electricity has risen by six percent every year for the past five years. This increase in demand is largely due to the growth of digital and Internet companies that are headquartered in major California cities. --
Some common words found in the essay are:
Pete Wilson, Transition Charge, , Northwest California, energy crisis, demand electricity, power plants, california seen, deregulation plan, charge customer bills, competitive metering billing, metering billing, competitive metering, summer season, charge customer, energy suppliers,
Approximate Word count = 840
Approximate Pages = 3 (250 words per page double spaced)
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