Eliminate Middlemen in Power Market
* When I read articles like “Power Crisis Puts Spotlight on Middlemen” (Dec. 18), I can barely contain my anger at the abject stupidity that got us to this point. Being forced to listen to the pious, sanctimonious rhetoric of people like the Western Power Trading Forum’s executive director, Gary Ackerman, one realizes that we are walking through a farm field and must be careful where we step.
To quote Ackerman, “They [the electricity brokers] take the risk; they bring their own money to the table.” Does this guy really believe that we, the consumers, will gladly buy artificially high-priced electricity after reading this mindless babble? Jeez!
There is only one way we will ever get out of this mess. Everyone between the consumer and the electric companies has got to go--now. And while they are leaving they should take the politicians who voted for this mess with them. Give the money back to the people who bought the power plants and stop this before it goes any further.
If that doesn’t happen what we are going to need is another Prop. 13.
CLYDE HAMMETT
Bellflower
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Harvey Rosenfield’s prescription for California’s electricity crisis is beyond irresponsible (Commentary, Dec. 18). It is silly. First, he wants to bankrupt California’s utilities, and then he wants a government takeover. In Rosenfield’s world, consumer protection is an oxymoron.
Utilities finance the procurement of electricity for their customers by borrowing in the commercial markets. They perform this function with no profit markup. Utilities stabilize charges to consumers for that power through a framework of rates that amortizes the cost over time for the sake of predictability and reliability.
Under Rosenfield’s scheme, consumers would be subject to the volatility of wholesale electricity prices with the consequence of severe rate shock, not unlike what San Diego’s citizens experienced this past summer. Moreover, his plan requires the state to put its credit, instead of the utilities’, on the line for California’s electrical system. The state’s surplus would quickly disappear, driving out other urgent public priorities like education.
Of course, none of this matters to those like Rosenfield who are driven by blind ideology and a near-pathological aversion to the private sector.
THOMAS J. HIGGINS
Senior Vice President
Edison International, Rosemead
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Re “A Power Crisis Wake-Up,” editorial, Dec. 15:
The power crisis is the lack of generating capacity. There has not been a new power plant built in this state for over 10 years. That is the base cause for the shortage. Other things, including deregulation and environmental upgrades to existing power plants, only add to this basic problem. Costs will continue to rise based on supply and demand. When supply goes down and demand goes up, the result is higher costs. All the expert analyses and finger-waving will not solve the problem; only more generating capacity will.
TOM BULLOCK
West Covina
