insightful media article california power prices mark golden excellent reporter covering power scene takeaways power prices declining california destruction demand effect higher retail power prices kicks long term power contracts signed various power producers energy merchants looking like sweetheart deals evidence price weakness base extremely high prices beginning develop movement prices california reflective message power curve 4 report show forward prices peaking summer year year power price comparisons projected flat 4 q 01 declining afterwards power points great news long term contracts jeopardized mark golden dow jones newswires column new york dow jones looking even slightest bit good news state california find friday san jose mercury news california danger losing 40 power lined long term contracts says lead major article republicans state legislature back 12 5 billion bond deal last week getting contracts would best thing happen california long time since state went long term buying binge forward prices power western u falling steadily gov gray davis announced 43 billion purchases lasting 20 years march 5 contracts summer power palo verde ariz key western trading hub feeds lot power california fallen 390 megawatt hour high 600 mwh late march power 2004 2006 mid columbia river key trading hub north california fallen 58 mwh february 49 mwh today companies like calpine corp cpn dynegy dyn took advantage state buying binge looking pretty fat happy fact affectionately started calling governor gravy days enron corp ene selling aggressively two months according traders looking like genius usual generators held like reliant energy rei duke energy duk may sorry long time since long western power felt serious pain markets time come power generators may make much profit summer last power traders taken long speculative positions may liquidate supplies far less bought seen eastern u power markets last summer long positions turn painful short positions california good news maybe spot purchasing costs summer bad expected bad news state government far biggest long bearish forward market safe say 43 billion contracts signed march declined value 15 6 5 billion almost big financial disaster going forward everything gone since last summer granted sort damned damned situation barring utilities forward market first three years deregulation one expensive public policy mistakes u history california forward purchasing behemoth move market gets done buying prices come simply stopped footnote mismanagement financial side energy crisis early year state started path mega purchasing shortage advice long term prices embedded much today supply demand imbalance state would much better dealing imbalance first since would anyway gradually securing forward power declining prices reflected improving situation since state done great job crushing demand electric usage already 9 expected thanks conservation efforts slowing economy people even seen 30 higher bills yet similar reduction seen power consumption western states natural gas usage nationally likely behind much downturn forward power prices west column started false good news lead would great state state credit rating sinks sellers exercised option tear five ten year contracts prices good sellers perspective calpine signed three contracts state said immediately intention reneging agreements gary ackerman director sellers association told mercury news expect power companies general back deals may real good news california davis administration hired dozens people little experience energy trading purchase billions dollars power perhaps quick learners week presented excellent opportunity state pick needs summer power year sale low prices daily market monday tuesday drove summer contract prices 325 mwh cheap recent standards contract price moved 390 mwh state took advantage opportunity window open week condition market place helped able procure energy june september said state spokesman oscar hidalgo hey blackouts week mark golden dow jones newswires 201 938 4604 mark golden dowjones com end dow jones newswires 18 05 01 1952 gmt ap dj 05 18 01 1952 gmt raymond c niles power natural gas research salomon smith barney 212 816 2807 ray niles ssmb com