I am in favor of rate increase and I am willing to put the last dime on the table to pay the energy. This way, I would be able to enjoy the comfort of life such as playing my computer games, a hot bath on a tub after a gruelling working day, to watch my playboy show on cable TV at any given time, to crank up my heater during winter, and to blast my home A/C at the peak of the summer season. This is not an expensive living but just an average middle class American lifestyle. The rate increase equate to this comfort is just a drop in the bucket if you are a home owner, approx 40bucks.
I think the price cap they are wagging about is for the summer season only where the demand increase is very notorious due to extremely high temperature. I could speak for the coastal areas in Calif where the demand increase by almost 25% during peak period without new load added into the system and the same load factor cycle. This is tough if there is not enough juice or generation available. This would drive the wholesale energy price to $9000 per MW-hour instead of $279 per Mw-hour (quoted on paper). This energy price level would be hard for the rate payers below the poverty line to pay.
The price cap would work as an interim tool to control the high cost of energy, during summer, while they are trying to create a long term solution of the crises. But It looks like Davis and his Ring Ling Brothers and Company are pre-occupied doing their routine comedy tricks day in and day out in Sacramento.
That may be true, but California may wish they had them in place after the rate increases start coming. The state will soon run out of money to pay for the power costs that should be borne by consumers.
Rates would go up for the consumers, but only for a short time. As the consumers conserve because of the high rates, the rates would go down. We would no longer have to buy the high priced electricity that is on the margin.
The state would not "run out of money", because they would no longer be subsidizing the investor-owned consumers' electricity bills.
We just have to "bite the bullet" like we finally did in 1981 for the gasoline shortage. I hated Ronald Reagan in 1981 in my semi-hippie youth, but I sure do appreciate him now.
Sanity in Walnut Creek - I guess we are the only people in the state who believe in free markets. I thought I was a voice crying in the wilderness of Northern California - it seems only our friends in Washington State and Oregon agree with us.
actually, there are people outside Walnut Creek who agree with you two -- I saw a poll on the SF Gate a couple days ago that indicated more people wanted prices to rise than thought they should be frozen. People aren't as dumb as the politicians think.