CALIFORNIA SCHEMING

OPINIÓN NEW TORK TIMES
27 de Mayo de 2002



Han pasado dos años desde que California sufriera su crisis energética y desde entonces todavía no se sabe con exactitud las causas que la provocaron. Con el escándalo de Enron se está creando un clima de confusión en el cual se entremezclan ambas historias, y una de las cosas que se saca en conclusión es, que desde su comienzo la crisis energética californiana ha estado poco investigada por los organismos correspondientes y ahora están saliendo a relucir intereses ocultos que van dando algo de luz al caso.
A Washington se le exige una respuesta al por qué, así como tomar las medidas necesarias para proteger el mercado eléctrico como un servicio público necesario en el que prime la transparencia y el derecho de uso frente a las mediaciones de terceros.


TEXTO NEW YORK TIMES

It has been two years since the meltdown in California's energy markets began. Despite the intense interest generated by Enron's role in the crisis, however, we still do not have a full accounting of what went wrong. We need that information. States that may still wish to pursue the once-bright promise of electricity deregulation will require instruction on how to avoid California's errors.

Congress and the Federal Energy Regulatory Commission, which are best positioned to do this job, are preoccupied with Enron's market manipulation. The danger is that California will be seen as just one part of the Enron story — the work of one rogue company instead of a complicated mess created by many different players.

The run-up of California energy costs in 2000 and 2001 bankrupted one utility, led to rolling blackouts and may yet cost Californians $30 billion in excess electricity charges. In the absence of a full accounting, people have constructed explanations that advance their own agendas. Vice President Dick Cheney first blamed the whole thing on the environmentalists, as well as shortages in natural gas. Gov. Gray Davis blamed the administration for its reluctance to impose controls on wholesale prices and to investigate market manipulation. Economists said things would have worked fine had politicians not meddled with their grand design. What's needed is for someone to cut through the explanations du jour and get at the truth.

The one thing everyone agrees on is that the power crisis was in large measure a crisis of underinvestment — a booming state economy undone by the failure to build the power plants necessary to sustain that boom. Few plants were built in the 1990's when prices were low. Producers withheld new investments until they better understood the brave new era of deregulation — which, as it turned out, nobody understood very well, least of all California.

In deregulating its power system, the state seems to have made every mistake possible. For starters, it forced utilities to buy power at market rates while capping what they could charge their retail customers. This devastated the utilities. It also sent exactly the wrong signal to consumers, who had no incentive to conserve. In addition, bedazzled by the prospect of allowing the free market to set wholesale prices, California refused to let its utilities sign long-term contracts to buy power from the generators. The utilities were thus left at the mercy of an extraordinarily tight spot market that, in turn, was highly vulnerable to manipulation by the clever lads at Enron.

On top of all that came a perfect storm of unforeseen events that hit with calamitous force. These included a drought in the Pacific Northwest that reduced California's hydroelectric power, a rise in the cost of certain pollution credits and a spike in natural gas prices. Mr. Cheney was certainly right about that one. What remains unexplained is why the rise in gas prices was so much higher in California than it was anywhere else.

Suspicions that some natural gas companies deliberately withheld supplies in anticipation of still higher prices have never been fully explored. Nor has the question of why one-third of California's available power mysteriously went off line in the winter of 2000-2001. Was it because older plants shut down for repairs? Or was it simply another instance of power providers gaming the market?

To everyone's great relief, the crisis eventually receded. Federal regulators summoned the courage to impose price controls, thus reducing incentives for manipulation. California's politicians summoned the courage to lift the caps on retail prices, which, together with a vigorous program of energy conservation, reduced demand. Yet the fact remains that the state has been badly and perhaps needlessly battered.

It is Washington's duty to find out why, and to devise the necessary safeguards. Electricity is a public necessity that must be managed wisely, not entrusted blindly to the market.

http://www.nytimes.com/2002/05/27/opinion/27MON1.html