y, it barred the increase of consumer rates until 2002. Companies were required to purchase their energy from a state-administered exchange, which hikes prices by making utilities had to pay each supplier the price demanded by the highest bidder, instead of generating their own power. The government has also instituted numerous laws to protect the environment. The state has made it so difficult to build new power plants that construction of new facilities averages about seven years. By comparison, power plants in Texas take no more than two or three years to begin. The end result has been that California hasnt seen a major power plant built within the past decade while Texas has seen 22 new power plants since 1995. This is coupled with the fact that Californians demand more and more energy each year.The governments defiance of economic principles by placing price controls on electricity coupled with electric companies being forced to sell their power-generating facilities and the ever-increasing demand of Californians for electricity has led to the current energy crisis....
