Bidding Rules Costly for Electric Rates

* Re “Davis Walks a Political Tightrope on Energy Prices,” Sept. 12: The deregulation of the California utilities didn’t include a change in the strangling bidding rules to which these utilities, unfortunately, are bound. They are required to buy their power through a state-sponsored day-ahead market, rather than being allowed to bid on longer-range contracts on the free market, which would permit them to lock in lower pricing.

The California Legislature wanted to retain controls on pricing, thinking it would result in the lowest costs. Well, the legislators were wrong! The real damage is that the public now believes energy price increases were due to deregulation, but in fact the utilities still aren’t deregulated enough to permit freedom of bidding. Take the reins off the bidding prices, and prices will come down.

JAN WINNING

West Hills

*

Why do the state taxpayers have to pay to keep San Diego residents’ electric bills down to $68 a month? Either the power providers are ripping the people off, or they have had really cheap electricity because San Diego Gas & Electric didn’t invest enough in increasing power-generating capacity.

They could shut off the air conditioning and probably keep their bill that low. My parents never had any air conditioning, and they lived where it got over 100 degrees every year. In a lot of cases we would be better off without it, just not as comfortable. There is no constitutional right or guarantee that we have to have air conditioning or cheap electricity. It sounds like a good time to start conserving.

KEN WALTERS

Apple Valley