PG&E is caught in its own self created mess. When Australia deregulated they
were paying $89.00 per megawatt hour, part of the selling off of assets,
in the frame of the contract it was stipulated that they would be able to
buy power back from the buyer at a fixed rate the was predictable,
and per that agreement there power costs dropped to $16.00 and
$17.00 per megawatt hour.
PG&E on the other hand had that option and decided to forgo it and buy
on the spot market same with Southern California Edison. A major
miscalculation.
Next but not least there is the power exchange where power can be purchased
at a better rate than from PG&E. There is plenty of juice on the grid, just not
enough competitive marketing alignment to make it greater public knowledge.
Anyway I am pooped out and I need some sleep so I will stop here for now.
Roeland Meyer wrote: