This month a planned auction of 174 publicly-owned dams and plants was cancelled, an action so significant that it will reach the global electricity market. Of course, such sagas are routine in the rest of the globe. As eastern Europe has shown, deregulating is almost always harder than regulating. The scenario is fraught with drama, often involving colourful players. Evil rent-seekers make obscene profits, at least for a while.
Some consumers suffer, at least for a while.
Lawmakers need to have epic courage. But turning fish soup into an aquarium is a much tougher undertaking. Still, with power deregulation moving forward in much of Europe, it is disconcerting to see it founder in freewheeling California. JWR contributor Amity Shlaes is a columnist for Financial Times . How Taxes Drive Americans Crazy and What to Do About It .