They set a very high cap on prices only to secure an upper bound and did not require the utilities to sell their generation plants. The Center for the Advancement of Energy Markets , has ranked state deregulation plans according to how effective they are at the transition from monopoly to competition and customer choice. In July 2000 they ranked California 16 th in the nation , with many state ranking lower only because their deregulation plans are incomplete. Our public debate would be far better served by looking at Pennsylvania for a guide to what is possible, than at California as a guide to what to fear. Back to top 3.
Price controls are the cause of many of our current problems.
Back to top 4. State policy makers must stop focusing on blame, pleading with federal regulators to step in and save us from ourselves, letting the utilities bleed red ink, and allowing the risk of blackouts to keep growing. State policy makers should be focusing on appropriate reforms that will bring California closer to the promises of lower prices, more competition, and a more reliable power supply. Since state policy is really to blame for the current crisis, customers and the utilities will have to share the costs, and utilities should not be able to take back all the losses from customers once rates are uncapped. Back to top 5.