interesting media article dow jones price controls interesting media article see dow jones price controls ray niles 212 816 2807 comments good article explaining complex power market california basically problem california insufficient deregulation problems worsened particular mixture controls market forces combine create imbalances specifically retail prices capped wholesale prices market determined except restrictions long term hedging recipe high volatile short term power prices seen view unchanged price controls set meaningfully low level cause blackouts creating imbalance supply demand elementary economics price controls reduce supply electrons flow elsewhere seeking higher prices power plants get built demand remains artificially high customers respond low controlled prices maintaining consumption high levels price caps issue facing industry think meaningfully low caps instituted contain self repeal mechanism e blackouts view way bring supply demand equilibrium market determined prices coupled new investment power plants electric transmission lines gas pipelines etc raymond c niles power natural gas research salomon smith barney 212 816 2807 ray niles ssmb com interesting media article 5 30 01 doc