The crisis began in California and is highlighted with poorly run programs. Pacificorp's multi-million dollar sister companies have gone bankrupt. Factors contributing to the crisis include supply and demand factors, spiraling prices, deregulation factors, etc. The resulting effect on prices is that everyone is buying wholesale at rates that are different from the prices charged to companies. Mr. Landels explained that a conference was held several weeks ago to get players involved.
New capacity is needed.
The task force will continue to meet over the next few weeks and will report its findings on February 1 or 2. Behavior will also have to change. Mr. Landels outlined some possible energy supply options. Although the use of coal is not out of the question, it will take 4-5 years to get to the point of use. It also has some environmental issues.