David Dodd 2:53 a.m., May 21
A Modest Spike in the Price of Gasoline in California
Earlier in the year 2000 & 2001, in California and San Diego, the country became the victim of an unregulated electricity market. Later on, both the states grabbed the attention of the nation when the electricity market of the states actually blew apart. Peter Wilson’s grand deregulation experiment forced the electricity providers to sell off their production facilities. As a result, the new owners took full advantage of this opportunity. The California economy staggered. The new owners of the plants took their plants offline during the peak usage times due to the maintenance issues and rising wholesale prices, which in turn resulted in price-rise for the consumers. An artificial situation was generated by the plant owners for the retailers to pay exorbitant prices. And this in turn forced the small businesses to shut off. According to the report compiled by McCullough Research, during November, McClatchy concluded that refineries in California were supposedly down for maintenance or suffered a severe mechanical malfunctions were, in fact, operational at the time they were supposed to be down. Back in time during October, California saw a peak rise in the gas prices. The explanation was a fire at Chevron’s, Richmond, CA, which strained supplies, causing a jump in both wholesale and retail prices. According to McCullough, during May and October, they found that gasoline inventories actually increased during the times of both price spikes. The fact was that the supply shortages took place months before.