>He did not understand that the California energy crisis was caused by deregulated power plants gouging the consumers.
>

How could price gouging cause there to not be enough power to supply California?

Two major causes of the crisis:

1) There were retail price caps set by the government. IOW, the market was not totally deregulated, and when wholesale costs fluctuated the utility companies could not pass on the cost to the end users. So, the market was not truly free and competitive.

2) Power producers were not allowed to build new power plants. Not enough supply to meet the demand. That makes prices go up, that is not the same as gouging.

Gov. Davis has been blaming the Texas power producers for gouging, but he has never (at least that I have seen) accused Calpine (a California based company) of gouging. They were were selling to the California utilities at high prices, just like the other power producers.

It is a case of the government interfering with the free market...and the free market *never* lies.

2 cents from a Texan (not in the power business)... <g>