I’ve been watching with interest the ongoing power generation problems in California. It looks like the California PUC is going to approve a rate hike that will raise the average family electric bill by about 10%. The problems have come as a result of an ill-conceived deregulation plan which, ironically enough, was supposed to lead to lower prices through competition. Unfortunately, the prices charged to consumer and power plant construction are still heavily regulated, so the anticipated competition was completely stifled, and the guys in the middle (the power companies) got completely pinched after they sold off all their existing power plants. I find it all fascinating.