Fine, I read your links. The newsbatch site states that the cap was only in place until the utility recovered its stranded costs. After that, they could charge whatever they wanted to. They give SDG&E as an example of a power company that had done this and then jacked up their retail prices.
One company may have paid back the subsidy it received but not all of them did. And where there is competition one company has to compeat with others by for instance having lower prices or offering better service In the case of electricity offering cleaner produced energy is a selling point to those who care about the environment.
But forget that for a minute. Lets say there were no restrictions at all and they could charge whatever they want whenever they wanted. It's not a free market situation where that would be appropriate but c'est la vie. Now Enron manipulates the market by shutting down power plants and causes a price spike. That cost is then passed straight to the consumer.
So open the market. Or have a non-profit such as a coop take over the grid. The members or owners of the coop could then be generators and electricity users, even the workers. But not government.
The consumer cannot afford the inflated price any more than the power company can. So, the people of California are still fucked and the state has to step in.
At the end of the day, all monopolies has to be regulated.
Here is where you make the same mistake as others, because where there are MONOPOLIES there are NOT FREE MARKETS. A free market is one with little to no government interference, and monopolies are government granted and therefore government interference. A free market is one where buyers have more than one option. Technically where cables, and fiber, has to be laid down there can not be a free market. For power, ie electricity, until it can be transmitted wirelessly like Nikolai Tesla worked on there will not be a free market. Earlier this year MIT demonstrated this however it has not been commercialized yet. And when it finally is it will probably be patented, thus ruling out a free market until the patent expires. Quite simply even in CA I can not buy electricity from any generator I want and pick the distributor I'll use to deliver it. Here I advocate encouraging more competition, for generators, and open access for distributors. Even better I think would be to have a coop own the power cables. Of course if I were in CA I'd have solar panels on my roof, and depending on where in CA, maybe a wind genie (generator) and or a geothermal system too.
It's not a free market and even Milton Friedman agrees with that (yeah, I actually read his books).
First, can you provide any links backing this up? Here's one on Milton Friedman speaking about government regulations. In it he targets the FDA saying the FDA should not be approving drugs. Instead drug companies are supposed to be held liable to harm or death caused by their drugs. While the FDA may save lives not approving a bad drug, it also causes deaths by taking too long to approve life saving drugs. Next, I don't want monopolies and would seek to get rid of them.
In short, any company that can fraudulently manipulate the energy markets will fuck you over no matter what.
I'm glad I don't live in your world, in mine not all businesses will screw over anyone they can. Though I know and knew people who have and had their own businesses, my sister owns one and I want to start one of my own among others, most of those people do not try to screw over others. Also if I had my own way I'd ban all monopolies I could. Well maybe not copyrights and patents, but I'd shorten their terms. I don't care if George Lucas makes another Billion dollars off of Star Wars 7, oops, he sold the franchise to Walt Disney, but after say 10 years it should enter the public domain. Or if I can create something using my own resources and independently at the same tyme IBM does I should not be blocked from making and selling it because IBM beat me to the patent office.
Falcon
Ooh, I thought that was better than your previous reply.