Comments on: California Gets A Mulligan http://www.coyoteblog.com/coyote_blog/2006/12/california_gets.html Dispatches from a Small Business Sun, 12 Feb 2012 09:39:47 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: Mike Giberson http://www.coyoteblog.com/coyote_blog/2006/12/california_gets.html/comment-page-1#comment-4393 Mike Giberson Mon, 01 Jan 2007 16:36:40 +0000 http://coyote-blog.com/wordpress/2006/12/california_gets.html#comment-4393 <p>I believe these are exactly the "Gray Davis contracts," and the contracts may have in fact contributed to resolution of the crisis (haven't looked carefully at this aspect, but the timing is approximately right and some logic says taking a big chuck of load out of the real time market and into long term contracts could have the effect of dampening exercise of market power).</p> <p>Of course there is some hypocrisy involved in signing contracts to solve a problem, and then after the problem is solved, claim that the contracts were, in effect, signed under duress and so shouldn't be honored.</p> <p>(Actually, "problem is solved" is too strong, since California is still trying to fix its market design problems. The crisis has been averted, perhaps due to the long term contracts that the state entered into.)</p> <p>(And by the way, just one "b" in "Giberson.")</p> I believe these are exactly the “Gray Davis contracts,” and the contracts may have in fact contributed to resolution of the crisis (haven’t looked carefully at this aspect, but the timing is approximately right and some logic says taking a big chuck of load out of the real time market and into long term contracts could have the effect of dampening exercise of market power).

Of course there is some hypocrisy involved in signing contracts to solve a problem, and then after the problem is solved, claim that the contracts were, in effect, signed under duress and so shouldn’t be honored.

(Actually, “problem is solved” is too strong, since California is still trying to fix its market design problems. The crisis has been averted, perhaps due to the long term contracts that the state entered into.)

(And by the way, just one “b” in “Giberson.”)

]]> By: wiseburn http://www.coyoteblog.com/coyote_blog/2006/12/california_gets.html/comment-page-1#comment-4392 wiseburn Wed, 27 Dec 2006 17:16:01 +0000 http://coyote-blog.com/wordpress/2006/12/california_gets.html#comment-4392 <p>Hopefully these are the secret contracts Gray David signed to "end the electricity crisis" ;)</p> <p>Good Riddance.</p> <p>Steve</p> Hopefully these are the secret contracts Gray David signed to “end the electricity crisis” ;)

Good Riddance.

Steve

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