The California energy crisis

When a basic commodity becomes unavailable for periods of time; when prices (wholesale prices) fluctuate on an interval that is several times greater than the average level, an average that increases by a factor of 10 or 20 over a few months; when some of the basic suppliers are on the verge of bankruptcy; then we say we are in a crisis. This is just some of what happened in the Californian electricity industry in the past two years. In this paper, I will discuss the main events in the energy crisis; the main reasons why things got to the point where they are; and some possible solutions. (C) 2002 Elsevier Science B.V. All rights reserved.