The energy crisis of eight years ago still haunts those who lived through it - especially responsible utility companies who work hard to ensure that destabilization of an essential service never happens again. Today, the United States Supreme Court heard arguments in a Washington State case that has challenged the validity of energy contracts signed during the electricity crisis. The complaint states that these contracts are over-priced and should be reopened and examined for fairness. California and Nevada also have pending cases alleging similar complaints. While the marketplace provides for fairness and price regulation, it is not a friend of the "regulated entity." Utilities are regulated, and therefore, cannot "play" in the marketplace as the sellers of electricity can. The public tacitly approves of a utility monopoly by not wanting 30 different polls and lines coming to and from their house. When deregulation was passed in California, the utilities were put between a rock and a hard place, having to content with high generation prices, while having to keep prices as low as possible for consumers. This topic will be coming up again as contracts signed during the electricity crisis expire. It is hopeful we do not make the same mistake twice.

See the LA Times story here.