ÿWPCø ¯a¤¡]J_bª×FÈš | Ð󞘚S¯G¤?ֽù•ÆÉåÒ0dÚß.õ Í=aTóX “ˆÑ/rÔÜV[©®ë£áÁ³4ºÔ~_¶µÃ/Àªi¦µZ”‡ ·JC«}_'^²Ê`­‰Ò>êåEz¸·CŸ ·´Ñmk,V’”Ïu3d»Žü»W†ÁÍ. AkÙÖ/ñ ŒY…œÐìHléNs¿©a¹èÎj4?€†Ò窒”×”>ÅB|ž, WkmØcä:î´ MeH<>ëÙFR’þ÷m¡"ÉU·ø˜{WhVU3–ÕIgf†4=¼Iö6‹ý©iO)  šYTÇHúë|öïˆLÿ~- Úÿãe+vÇcÆñ5øý‡ÂIaŽàÙu«CÒ‰dÆ­zÒ”¢œµRßqëFö"¼!±k±7%‹OEmHsØþ ]šÐxLVî0ì:iÿ‹çÅ^Ë€jêb‚(ØÁ[Ôûöè'©Ã('ë phN9¹è@`fѹ½•þŠºÏÕiu?º|Is'ˆ—mÐI± ®ÃA2`UÁÄÞ¼BÄ‘Gõàõ°þiR÷mlÓp}Ðe ©Œ~PY?•ašgä½!VQ ~UNŽ %Ü 0(âw@ 4J’^ð3|x6 (ÖÃ9 Z ‹6Times New Roman RegularX($¡¡ - . D/ 0 1 2 3 V4 D5 e6 ¹²ð(DÔ8ÔôCRP Talking Points v1.3 Ñ : ' Westmiller0Westmiller .   Ý ƒ!ÝÝ  ÝÔ‡¼>¼XXÔÓ  Óò òCalifornia€Electric€Crisisó óÐ ° ÐTalking€Points€for€Free„MarketsÌÓ:ÓÔ#†XµMX¼¼>#ÔÌÔ‡ˆ#¢ˆXXµMÔÌò òðð€Price€controls€didnððt€work€for€Dick€Nixon;€they€wonððt€work€for€Gray€Davis.Ð À Ðó óà0  àà ° àà  àò ò1.ó ó€Whenever€government€regulators€disrupt€the€connection€between€supply€andÐ À  Ðdemand,€they€create€shortages,€pain€and€suffering€for€consumers.Ð (#(# ÐÌò òðð€Deregulation€is€the€solution,€not€the€problem.ó óÐ ¼  Ðà0  àà ° àà  àò ò2.ó ó€Deregulation€has€only€slightly€reduced€the€old€monopolies€on€power€generation,Ð ¼  Ðbut€the€industry€is€still€enslaved€to€thousands€of€federal,€state€and€localÏregulations.Ð (#(# ÐÌò òðð€Consumers€are€paying€a€huge€price€for€short„sighted€energy€policies.ó óÐ ´  Ðà0  àà ° àà  àò ò3.ó ó€The€problem€is€not€high€demand,€but€the€administrative€barriers€that€stopped€theÐ ´ Ðdevelopment€of€new€power€sources€in€California€and€across€the€country.Ð (#(# ÐÌò òðð€Rather€than€causing€harm,€profit€is€a€fair€reward€for€good€future€planning.ó óÐ ° Ðà0  àà ° àà  àò ò4.ó ó€Investors€deserve€to€be€compensated€when€they€respond€to€consumer€demandsÐ ° Ðand€take€huge€long„term€risks€to€provide€energy€to€a€growing€economy.Ð (#(# ÐÌò òðð€Economic€regulation€is€always€a€burden€on€consumers,€not€business.ó óÐ ¬ü Ðà0  àà ° àà  àò ò5.ó ó€There€is€no€government€action€that€can€improve€consumer€opportunities€orÐ ¬ü Ðprices.€Regulation€is€just€a€process€of€switching€costs€to€benefit€politically€strongÏgroups€at€the€expense€of€the€average€citizen.Ð (#(# ÐÌò òðð€Progressive€conservation€and€environmental€goals€require€free„market€pricing.ó óÐ ¤ô Ðà0  àà ° àà  àò ò6.ó ó€The€signals€that€market€pricing€offers€consumers€is€the€best€motive€for€makingÐ ¤ô Ðthe€most€efficient€use€of€energy.Ð (#(# ÐÌÔ#†XµMXˆˆ#¢Ï#ÔCommentary:Ð  "ð ÐÌCalifornia€Scheming€by€Michael€LynchÌReason€Foundation:€http://reason.com›/ml/œml010401›.œhtml›ÌÌThe€California€œGrinch›€by€Jack€œKemp›ÌJewish€World€Review:€http://œwww.jewishworldreview.com›/cols/œkemp122700›.aspÌœÌStranded€In€Sacramento€by€Robert€MichaelsÌCATO€Foundation:€http://www.cato.org//pubs/regulation/reg20n2i.htmlÌñ3 ñÐ  Ø+('( Ðñ3 ññ4 ñÌñ4 ññ2 ñCalifornia€Sizzle€by€William€WestmillerÌRepublican€Liberty€Caucus:€http://www.westmiller.com/comment/œsizzle.htm›Ð  °-)* Ðñ2 ñò òðð›€Price€controls€didnððt€work€for€Dick€Nixon;Ð ° Ðà  àthey€wonððt€work€for€Gray€Davis.Ìó óà0  àà ° àà  àò ò1.ó ó€Whenever€government€regulators€disrupt€the€connection€between€supply€and€demand,Ð ˆØ Ðthey€create€shortages,€pain€and€suffering€for€consumers.Ð (#(# Ðò òÌà  àðð€a.€Neither€legislators,€nor€regulators,€nor€initiatives,€can€veto€basic€economic€laws.ó óÐ P   ÐÌà  àWhen€electricity€costs€a€dollar€per€kilowatt€hour€[kWh]€to€produce,€no€one€can€sell€it€forÏ7„cents€and€survive.€The€œð ðderegulationðð›€legislation€of€1996€[AB€1890]€carried€just€such€a€poisonÏpill,€requiring€retail€price€œfreezes,€even›€reductions,€in€spite€of€œcontrary€economic›€realities.ÏHowever€well€informed€and€advised,€state€regulators€€can't€create€energy€out€of€thin€air.€All€costsÏmust€be€paid€by€someone.Ìà  àUnder€the€current€regulatory€scheme,€œthe€true€costs›€œof€ñ5 ñelecticityñ5 ññ5 ñelectricityñ5 ñ€have›€merely€beenÏpostponed€by€financial€gimmicks€that€will€œspread€the€ñ5 ñburdenñ5 ññ2 ñ›ñ2 ññ5 ñoverñ5 ññ5 ñburden€overñ5 ñ›€the€next€three€to€ten€years.ÏBond€issues€and€accounting€credits€œcan€only›€increase€the€financial€costs€of€current€and€futureÏenergy€supplies.ÌÌò òà  àðð€b.€Short„sighted€policies€create€long„term€pain€for€consumers€and€taxpayers.Ð `° Ðó óÌà  àWhen€a€damaged€natural€gas€pipeline€[Arizona„California]€last€year€caused€a€reduction€inÏsupply,€prices€for€the€fuel€that€runs€most€electric€generating€plants€increased.€The€possibility€ofÏswitching€to€alternate€fuels€was€precluded€by€œstate›€environmental€regulations.€As€a€result€of€rigidÏand€ponderous€œrules,›€California€has€become€œdependent›€on€imported€natural€gas€[85%]€and€œelectricÏpower€generated€in€other€states,›€making€œconsumers›€the€victims€of€seasonal€fluctuations€œandÏdisruptions€which€are€reflected€in›€œthe›€short„term€œwholesale€cost›€of€electricity.Ìñ2 ñœñ2 ñà  àThe€major€state€utilities€[San€Diego€Gas€&€Electric,€Southern€California€Edison,€andÏPacific€Gas€&€Electric]€have€paid€premium€prices€for€prime„time€electric€power€to€satisfyÏconsumer€demand€that€takes€no€account€of€those€œprices.›€The€accounting€debt€[$7„9€œbillion]›€will€beÏpaid€by€all€consumers€based€on€œtheir€volume€usage,›€rather€than€their€prime€time€usage.€Ìñ2 ñœñ2 ñà  àSubsidized€rates,€differential€class€rates€and€cost„shifting€to€sales€tax€payers€all€workÏagainst€the€best€and€most€efficient€distribution€of€œelectric€energy.›Ìñ2 ñœñ2 ñÌSources:ÌœÌThe›€Fresno€Bee€œ01/02/01›Ìhttp://œwww.fresnobee.com›/œlocalnews›/story/0,1724,226452,00.œhtml›ÌœÌSan€Francisco€Chronicle€01/03/01Ìhttp://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2001/01/05/MN125962.DTL€ÌÌAssociated€Press€01/06/01Ìhttp://www.ptconnect.com/archive/today/new02.aspÌÌSan€Diego€Union„Tribune€01/06/01Ìñ2 ñ›ñ2 ñhttp://www.uniontrib.com/news/uniontrib/sat/news/news_1n6power.html›Ð  D-”(, Ðò òðð€Deregulation€is€the€solution,€not€the€problem.ó óÐ ° Ðà0  àà ° àà  àò ò2.ó ó€Deregulation€has€only€slightly€reduced€the€old€monopolies€on€power€generation,€but€theÐ œì Ðindustry€is€still€enslaved€to€thousands€of€federal,€state€and€local€regulations.Ð (#(# ÐÌò òà  àðð€a.€Transition€is€always€burdened€by€unknown€risks€and€hazards.ó óÐ d´ ÐÌà  àThe€œð ðderegulationðð›€process€was€started€with€the€unanimous€agreement€of€all€members€ofÏthe€state€legislature€[œAB1890›;€1996]€to€correct€evident€problems€with€the€California€electricÏgeneration€and€distribution€system.€That€political€process€involved€changes€to€more€than€a€dozenÏsections€of€state€law,€requiring€many€compromises€and€transitional€steps€that€were€both€novel€andÏrisky.€Of€necessity,€the€process€included€assumptions€and€œjudgments›€by€legislators,€industry€andÏregulators€which€were€incorrect.€Crystal€balls€are€always€in€short€supply.Ìà  àThe€most€substantive€effect€of€the€legislation€was€to€distribute€the€monopoly€œof›€the€threeÏmajor€œutilities€over€power€generation.›€œThey€were€required€to€sell€most€of€their€plants€in€exchangeÏfor€a€retail€surcharges€to€recover€losses€[ððstranded€costsðð]€from€uneconomic€plants.€The€utilitiesÏagreed€to€retail€rate€ceilings,€turned€over€their€distribution€assets€[power€lines]€to€a›€œnew€stateÏbureaucracy,€the€Independent€System€Operator€[ISO],€and€agreed€to€purchase€all€electricity€fromÏa€monopoly€market,€›€the€California€Power€Exchange€[œCalPXñ4 ñ›ñ4 ñ].€This€ð ðderegulation€schemeððÏactually€increased€the€number€of€regulatory€entities€and€market€controls€over€electricity.Ìà  àThe€California€Energy€Commission€[CEC›]€retained€all€of€its€power€over€new€constructionÏand€the€California€Public€Utilities€Commission€[œCPUC›]€expanded€its€governing€power€over€theÏentire€process.€The€Federal€Energy€Regulatory€Commission€[œFERC›]€jurisdiction€over€interstateÏtransmission€of€power€was€unaffected€by€the€California€legislation.€In€effect,€the€entire€processÏrevolved€around€a€re„regulation,€rather€than€de„regulation€of€the€œindustry.›ÌÌò òà  àðð€b.€All€the€Kingððs€horses€and€all€the€Kingððs€men€cannot€make€electricity.ó óÐ À ÐÌà  àThe€sixty„plus€pages€of€legislation,€hundreds€of€pages€of€rules,€thousands€of€pages€ofÏregulations,€topped€off€by€the€individual€judgements€of€tens€of€thousands€of€regulators,€cannotÏmake€a€free€market.€There€is€no€substitute€for€the€cumulative€judgement€of€millions€of€consumersÏand€businesses€who€make€billions€of€independent€decisions€about€their€economic€future,€every€Ïhour€of€every€day€of€every€year.€Given€a€few€reasonable€laws€that€protect€honest€and€bindingÏagreements,€the€free€will€of€the€people€will€always€optimize€the€use€of€valuable€resources.ÏReducing€the€role€of€government€to€the€resolution€of€disputes€and€the€punishment€of€fraudulentÏtransactions€is€the€only€contribution€that€coercion€can€make€to€an€efficient€and€beneficialÏeconomic€system.ÌœÌSources:›Ì€œAB1890›:€http://œinfo.sen.ca.gov›/œcgi›-bin/œpostquery?bill_number›=œab_1890›&sess=9596Ì€California€Independent€System€Operator:€http://œwww.caiso.com›/Ì€California€Power€Exchange:€http://œwww.calpx.com›/Ì€California€Public€Utilities€Commission:€http://œwww.cpuc.ca.gov›/Ì€California€Energy€Commission:€http://œwww.energy.ca.gov›/Ìœò òÐ  X,¨'+ Ððð›€Consumers€are€paying€a€huge€price€for€short„sighted€energy€policies.ó óÐ ° Ðà0  àà ° àà  àò ò3.ó ó€The€problem€is€not€high€demand,€but€the€administrative€barriers€that€stopped€theÐ œì Ðdevelopment€of€new€power€sources€in€California€and€across€the€country.Ð (#(# ÐÌò òà  àðð€a.€Scarce€resources€in€high€demand€are€always€high€priced.Ð d´ Ðó óÌà  àThe€electric€power€market€must€always€be€a€fluctuating€blend€of€variable€demand€andÏlimited€supply.€Handicapping€one€of€the€most€volatile€markets€with€the€most€ponderousÏregulations€and€pantheon€of€politically€sensitive€regulators€is€a€recipe€for€disaster.Ìà  àThe€presumption€that€mere€words€on€paper€can€create€ð ðjust,€reasonable€and€lowðð€pricesÏfor€electric€power€is€nonsense.€Putting€price€controls€on€retail€and€wholesale€transactions€can€onlyÏdistort€the€reality€of€growing€demand€and€restricted€supply,€resulting€in€a€truly€ð ðdysfunctionalÏmarketðð.€œWhen›€regulators€capped€retail€prices,€they€took€no€account€of€wholesale€cost€œincreasesÏcaused€by€severe€restrictions€on€the€construction€of€new€power€plants€at€every€level€ofÏjurisdiction.€In€the€two€years€since€ð ðderegulationðð€started,€the€California€Energy€CommissionÏ[CEC›]€has€approved€only€nine€small€plants€while€holding€dozens€of€others€in€abeyance.€AddingÏthis€regulatory€dissonance€to€the€normally€long€construction€cycle€for€power€generating€plantsÏvirtually€guarantees€long„term€shortages€and€high€prices.ÌÌò òà  àðð€b.€Short„term€volatility€ensures€long„term€uncertainty.Ð 8ˆ Ðó óÌà  àOne€of€the€most€critical€faults€of€the€ð ðderegulationðð€scheme€was€to€first€require€or€exemptÏpower€generators€œfrom€participating›€in€œa€short„term›€hour„by„hour€market€œcontrolled€by€the€rulesÏof€the€monopoly›€California€Power€Exchange€[œCalPX›].€As€a€legislative€creation,€the€ExchangeÏpractically€forbids€the€long„term€contracting€that€would€provide€a€stable€financial€environment€forÏlong„term€plant€development€and€construction.€Rather€than€freeing€the€market€for€new€financialÏinstruments€that€offset€risks,€the€state€scheme€foreshortens€trading€activity€that€would€enhanceÏmarket€entry.€By€requiring€the€largest€utilities€to€subscribe€„„€and€exempting€municipal€utilitiesÏfrom€the€obligation€„„€the€legislation€practically€invites€financial€bankruptcy,€diminishing€supplyÏand€profligate€consumption.Ìà  à€œFederal›€regulators€[œFERC›]€œhave€refused€to€impose€wholesale€price€controls,€a€ð ðremedyððÏfavored€by€the€California€Executive€Branch,€which€would€only€distribute€the€injury€and€burdens€toÏa€national€set€of€consumers.Ìà  àThe€two€remaining€utilities€under€price€controls€[Edison€&€Pacific]€say€they€have€satisfiedÏthe€diversification€requirements€for€the€elimination€of€price€controls.€State€regulators€could€takeÏmonths€to€audit€those€claims,€leaving€the€utilities€with€more€billions€of€dollars€in€debt,€even€withÏCPUC€approval€of€a€temporary€surcharge€on€consumers.ÌÌSources:Ì€CEC›€Plant€Approvals:Ïhttp://œwww.energy.ca.gov›/releasesœ/2000_releases›/2000-12œ-20_approved.html›Ì€San€Francisco€Chronicle,€œ01/03/01›Ìhttp://œwww.sfgate.com›/œcgi›-bin/œarticle.cgi?file›=/chronicle/archive/2001/01/03/œMN118772›.DTL€Ìœ€Orange€County€Register,€01/05/01Ìhttp://www.ocregister.com/politics/energy00105cci.shtmlÐ  D-”(, Ðò òðð›€Rather€than€causing€harm,€profit€is€a€fair€reward€for€good€future€planning.ó óÐ ° Ðà0  àà ° àà  àò ò4.ó ó€Investors€deserve€to€be€compensated€when€they€respond€to€consumer€demands€and€takeÐ œì Ðhuge€long„term€risks€to€provide€energy€to€a€growing€economy.Ð (#(# ÐÌò òà  àðð€a.€Companies€who€participated€in€deregulation€sales€over€the€past€two€years€haveÐ d´ Ðnot€had€larger€profits€than€those€which€ignored€them.Ìó óÌà  àCompanies€who€bought€power€plants€[Reliant€Energy€Inc.,€œNRG›€Energy€Inc.,€œDynegy›,Ïand€Duke€Energy]€had€smaller€profit€increases€in€the€last€quarter€of€2000€than€those€utilities€thatÏdid€not€buy€plants€under€the€deregulation€œagreement.€All€but€one€of€the€plants€were€locatedÏoutside€California€and€came€under€the€jurisdiction€of€federal,€rather€than€state,€regulations.Ìà  àMany€of€the€generating€plants€that€were€sold€had€purchase€prices€far€beyond€[up€to€2€ððÏtimes]€the€book€value€of€those€plants,€which€had€been€carried€on€the€utility€accounts€with€noÏdepreciation€of€outmoded€equipment.€That€benefited€the€balance€sheets€of€the€state€utilities€[SanÏDiego€Gas€&€Electric,€Southern€California€Edison,€and€Pacific€Gas€&€Electric],€which€are€notÏallowed€to€make€a€larger€profit€than€regulators€find€ð ðreasonableðð.Ìà  àThese€new€investors€in€California€generating€capacity€are€national€businesses€whichÏrespond€to€demands€from€everywhere€across€the€nation.€Their€profit€margins€in€California€are€notÏsignificantly€different€than€other€areas€of€the€nation€which€they€serve.ÌÌò òà  àðð€b.€Prices,€not€profits,€must€increase€when€demand€exceeds€supply.Ð $t Ðó óÌà  àSan€Diego€Gas€and€Electric€sold€one„half€of€its€generating€capacity€last€year,€gainingÏtemporary€freedom€from€the€artificial€rate€freeze€imposed€by€state€bureaucrats.€Their€pricesÏincreased€when€€natural€gas€supplies€were€disrupted€[Arizona„California€pipeline€explosion],Ïincreasing€the€costs€of€electric€generation.€Through€no€fault€of€their€own,€the€San€Diego€utilityÏwas€burdened€with€another€ð ðtemporaryðð€rate€freeze,€pending€a€regulatory€audit.Ìà  àThe€anticipated€increases€in€consumer€prices€for€the€other€two€distributors€[SouthernÏCalifornia€Edison€and€Pacific€Gas€&€Electric]€are€not€profit€increases.€In€fact,€the€two€utilities€willÏstill€be€operating€at€a€significant€loss.€Price€increases€that€should€have€been€applied€during€peakÏdemand€times€have€been€spread€over€three€years€with€a€state€loan,€which€their€consumers€will€beÏobliged€to€pay€through€higher€prices€over€the€life€of€the€bond.ÌÌSources:Ì€Union-Tribune€Publishing€Co.€12/17/2000Ìhttp://www.uniontrib.com›/news/œuniontrib›/sun/news/œnews_1n17power.html›Ì€Los€Angeles€Times€12/17/2000Ìhttp://œwww.latimes.com›/news/state/20001217/œt000120349›.œhtml›Ì€The€Orange€County€Register€12/17/00Ìhttp://œwww.ocregister.com›/politics/œpower01217cci.shtml›Ð  ¨(ø#' Ðò òðð€Economic€regulation€is€always€a€burden€on€consumers,€not€business.ó óÐ ° Ðà0  àà ° àà  àò ò5.ó ó€There€is€no€government€action€that€can€improve€consumer€opportunities€or€prices.Ð œì ÐRegulation€is€just€a€process€of€switching€costs€to€benefit€politically€strong€groups€at€theÏexpense€of€the€average€citizen.Ð (#(# ÐÌñ4 ñœñ4 ñò òà  àðð€a.€Government€creates€nothing;€at€best€it€œcan€prevent›€destruction.Ð P   Ðó óÌà  àñ4 ñœñ4 ñœThe€production€of€electric€energy€is€an€economic€enterprise.€ñ4 ñ›ñ4 ñAssets€are€allocated€to€theÏconstruction€of€generating€plants€based€on€a€wide€range€of€long„term€estimates€of€consumerÏdemand.€Businesses€do€not€build€generating€facilities€in€the€expectation€that€ñ4 ñ›ñ4 ñthere€will€be€noÏreason€for€its€operation.€The€intent€is€that€long„term€construction€costs€and€operational€expensesÏwill€be€paid,€and€that€investors€will€be€compensated,€through€the€sale€of€electric€power.Ìà  àWhen€governments€disrupt€and€infringe€on€those€economic€decisions,€the€excess€costs€andÏrisks€are€passed€on€to€taxpayers€or€added€to€the€bills€of€consumers.€Thereððs€nowhere€else€forÏthose€costs€to€go.€When€bureaucrats€act,€consumers€and€taxpayers€pay.€When€price€controls€areÏimposed,€the€ceilings€are€almost€always€set€to€compensate€businesses€for€those€regulatory€andÏexcess€costs.€The€illusion€that€prices€are€lower€is€credited€to€government€and€the€actual€costs€areÏblamed€on€the€corporations€that€distribute€the€bills.ÌÌò òà  àðð€b.€Government€ð ðinvestmentsðð€are€always€uneconomic.Ð 8ˆ Ðó óÌà  àOne€of€the€ð ðsolutionsðð€offered€by€Governor€Gray€Davis€is€the€construction€of€new€plantsÏor€the€ñ5 ñrehabilitatonñ5 ññ5 ñrehabilitationñ5 ñ€of€old€plants€at€state€expense.€Of€course,€ð ðstate€expenseðð€is€taxpayer€dollars.ÏSuch€projects€are€certain€to€be€the€least€efficient€and€most€expensive€response€to€electricÏshortages.€Absent€the€interests€of€scrupulous€financial€investors,€state€bureaucrats€have€noÏincentive€to€diminish€or€optimize€costs.€Although€the€pay€all€the€bills,€taxpayers€have€no€directÏvoice€in€the€allocation€of€their€financial€resources.€Not€only€is€a€government€ð ðinvestmentððÏprotected€from€any€cost€considerations,€but€it€can€also€ignore€the€demand€curves€that€generateÏincome.€It€can€build€generating€plants€that€have€no€market€justification€for€operation.Ìà  àAt€best,€government€ð ðinvestmentðð€may€be€capable€of€evading€the€most€onerousÏrestrictions€of€other€government€regulators.€Whatever€benefits€might€be€derived€from€expeditedÏapprovals€and€generous€exceptions€to€current€laws,€consumers€and€taxpayers€will€pay€hugeÏpremiums€for€the€inefficiency,€patronage€and€corruption€that€accompanies€government€projects.€¼à  àMunicipal€Departments€of€Water€and€Power€[DWP]€currently€supply€about€20%€of€theÏtotal€California€electric€market.€Because€they€are€exempted€from€state€regulation€by€provisions€ofÏthe€California€Constitution,€these€publicly€owned€utilities€have€been€the€primary€cause€of€theÏextreme€wholesale€price€fluctuations€that€are€passed€on€to€other€utility€consumers.€By€purchasingÏelectricity€from€out„of„state€government€generators€[Washingtonððs€Bonneville€PowerÏAdministration]€at€a€low€price,€then€reselling€it€on€the€controlled€market€at€premium€spot€prices,Ïthese€utilities€have€made€huge€ð ðwindfall€profitsðð,€at€the€expense€of€all€other€consumers.ÌÌSources:ÌWashington€Times€12/27/00Ìhttp://www.washingtontimes.com/national/default-2000122723476.htmÌÐ  D-”(, ÐÔ‡ˆ#¢ˆXXµMÔò òðð€Progressive€conservation€and€environmental€goals€require€free„market€pricing.ó óÐ ° Ðà0  àà ° àà  àò ò6.ó ó€The€signals€that€market€pricing€offers€consumers€is€the€best€motive€for€makingÐ ° Ðthe€most€efficient€use€of€energy.Ð (#(# ÐÔ#†XµMXˆˆ#¢ñK#ÔÌò òà  àðð€a.€Conservation€is€a€decision,€not€a€ð ðcivic€dutyðð.Ð œì Ðó óÌà  àWhile€ð ðbenevolent€governmentðð€has€encouraged€the€idea€of€conservation€as€a€public€duty,Ïit€has€only€succeeded€in€ñ5 ñtransferingñ5 ññ5 ñtransferringñ5 ñ€higher€costs€to€the€most€conscientious€and€efficientÏconsumers.€The€ð ðtragedy€of€the€commonsðð€flows€from€the€fact€that€anything€which€is€perceived€asÏð ðfreeðð€is€always€consumed€to€the€highest€degree€possible.€When€everyone€ð ðownsðð€an€asset,€no€oneÏhas€an€interest€in€preserving€its€future€value.€By€removing€the€consequences€of€prolific€use€fromÏany€one€person€and€ascribing€the€responsibility€to€everyone,€resources€are€certain€to€be€used€in€theÏleast€efficient€and€most€destructive€ways.€Electrical€energy€is€not€exempt.Ìà  àIn€a€free€market€transaction,€prices€are€the€guide€to€every€seller€and€buyer€of€theÏfluctuating€demands€on€limited€supplies.€When€wholesale€and€retail€prices€offer€no€message€aboutÏthe€value€of€consumption,€the€resources€are€automatically€in€jeopardy.Ìà  àIn€the€California€electric€markets,€retail€prices€are€confined€to€arbitrary€ceilings€which€haveÏno€relation€to€value€or€the€fluctuations€of€demand.€Consumers€have€no€messages€that€wouldÏgovern€their€conduct,€hour„to„hour€or€day€to€day.€Demand€peaks€and€ebbs€without€regard€toÏsupply€and€there€are€no€rewards€or€benefits€to€conservation.€No€amount€of€political€indoctrinationÏcan€avoid€the€inevitable,€ñ5 ñcaoticñ5 ññ5 ñchaoticñ5 ñ€and€anarchic€over„consumption€of€those€ñ5 ñresoucesñ5 ññ5 ñresourcesñ5 ñ.ÌÌÌò òà  àðð€b.€Human€well„being€is€the€only€environmental€issue.Ð  p Ðó óÌ€à  àMost€human€beings€value€parks,€open€spaces€and€natural€habitats,€to€say€nothing€ofÐ øH Ðpristine€air€and€water.€However,€those€are€not€the€only€ð ðprecious€thingsðð€contributing€toÏeveryoneððs€well„being.€Food,€shelter€and€comfort€probably€rank€higher€in€nearly€everyoneððs€lifeÏpriorities.€However,€some€aesthetic€values€compete€with€the€domestic€values€for€resources.ÏComfort€requires€heating€and€cooling€energy.€Power€plants,€oil€wells€and€mining€that€makes€thatÏcomfort€possible€may€not€be€the€most€attractive€or€even€the€best€use€of€any€particular€location.ÏArbitrating€those€tradeoffs€through€the€exercise€of€political€power€always€works€to€the€detrimentÏof€those€without€political€influence.€In€most€cases,€thatððs€the€common€man€with€limited€resourcesÏand€little€time.€The€only€means€of€putting€everyone€on€an€equal€standing€is€pricing.€NaturalÏamenities€need€to€be€acquired€and€maintained€in€a€fair€and€equal€competition€with€other€humanÏvalues€and€life€priorities.Ìà  àInjury€is€not€a€negotiable€commodity.€When€any€conduct€causes€demonstrable€harm,€thatÏconduct€should€be€punished€and€restitution€applied.€Those€industrial€and€extraction€activities€thatÏmake€electric€energy€possible€can€and€must€be€done€without€endangering€the€health€of€even€oneÏperson.€Pollution€should€be€classified€the€same€as€any€other€criminal€assault,€but€mostÏñ5 ñenvirontmentalñ5 ññ5 ñenvironmentalñ5 ñ€regulations€ñ6 ñtake€no€account€of€ñ6 ñpersonal€injury.€ñ- ñGñ- ññ. ñWhen€gñ. ñovernment€bureaucrats€accuse,€tryÏand€convict€businesses€of€alleged€pollution€without€the€presumption€of€innocence€or€any€evidenceÏof€harm,€ñ/ ñat€the€expense€of€ñ/ ññ0 ñthey€are€perverting€justice€and€imposing€penalties€on€ñ0 ñconsumers€and€taxpayers.€Objective€tort€reforms€that€grant€everyÏcitizen€equal€protection€from€abuse€are€the€only€remedies€to€true€environmental€pollution.ñ1 ñÌÐ |-Ì(, Ðà  àÌ***ñ1 ñ