Story Outline

 

Deregulation of Power Sends Prices Skyward From a news story by CNN San Francisco Reporter Rusty Dornin August 5, 2000

I. Beginnings of Deregulation

A. California voted in 1996 to deregulate.

1. San Diego was one of the first cities.
2. Other cities followed.

B. Hoped for results

1. Change would happen slowly.
2. The increased competition would bring the rates down.

II. Events this week in San Diego

A. There was an imbalance between supply and demand.

1. Old and not enough power plants to supply power
2. Power almost had to be turned off.

a. Demand increased because of hot weather.
b. Nearby states had no power to send.

3. Prices were very high.

a. People were surprised by the big change.
b. Power bills were twice as high as before.

B. How did this happen

1. With deregulation, utility companies stopped building power plants.
2. Demand became greater while ability to produce decreased.

III. Reactions in San Diego

A. People of San Diego asked for help and reduced prices.
B. City feared for the economy of the city.
C. The commission

1. did not want to freeze the prices
2. did ask for an investigation and rebates

IV. San Francisco also has severe shortages of power supply.

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