I work in the electric utility industry and was having a conversation the other day along the lines of "if you were in charge of the California situation what would you do to fix it." I'm sorry to say we could not think of one thing. That boogie's a mess and the pressures extend across the entire western grid.

Taking a monopolistic enterprise into competition is no small feat and the theoretical economists can ably argue both sides of the benefits of monopoly versus pure competition. In California, the "transition" period is coming to a close where the incumbent utilitie's rates will no longer be frozen. It is important to recognize the utilities out there having been buying wholesale energy at a much higher price than the frozen rates allow. No amount of volume can turn that around! So their financial position has eroded and wholesale suppliers are not willing to take the credit risk to sell to them.

Although wholesale prices are at historic highs, new facilities have not been built, but please don't view this as a conspiracy. California has the toughest environmental licensing laws in the land and, sad to say, that greatly increases the price tag for new generation. I understand there are a number of units that could run right now, but would be inviolation of maximum run times in their air permit.

And there are many more related issues.

Needless to say, the CA situation is major serious and could require rather draconian solutions.