Energy costs go up, sales need to increase to keep up. Not many financial officers can find a better deal. In San Diego this past summer, there was more investment in energy conservation then in the several years proceeding. Let the prices rise, but protect the consumer and the economy from escalating prices that create dire consequences. The price San Diegans saw hit was twice that amount. .
Obviously generators don t like to sell power at a price lower than their cost to generate it.
The economics will also encouraged them to consider building power plants that are not fossil fuel dependent. Let the utilities enter into forward contracts. FERC recently gave approval for the utilities to do this. It would have turned out to be a good thing for San Diego. Both the seller and buyer share the risk on forward commodity contracts.