I have spent this morning learning about the energy crisis in California that occurred about a decade ago. You should all have the pleasure. The summary is, not surprisingly that in 1996 the state of California “deregulated” the electricity sector by allowing wholesale electricity prices to fluctuate and then slapping price controls on the retail side.
For those of you who understand that lots of political discourse is about narrative and crafting it, keep this in mind when you hear about an “environment of deregulation” that has swept the nation for the last 30 years.
In any case, the result was predictable, and per usual the government behaved much like a dog running but attached to a long, slack leash. I’ll tell the whole story one day, but my favorite episodes include these two facts:
But that was all in the past, nothing like that could possibly happen today. Remember, we are getting down to the hard work of evaluating every single rule and regulation and getting rid of the dumb ones. Have a nice day, as they say.