Western/Pacific Literacy Network

Deregulation of Power Sends Prices Skyward

From a news story by
CNN San Francisco Reporter Rusty Dornin

August 5, 2000

ACTIVITY INSTRUCTIONS

Read the question below. Think about how you feel about the question. When you are ready to write down your thoughts, first type in your name and e-mail address. Then type in your thoughts in the box. When you are finished, click on the send button. If you need to start over, click the clear button. This will erase your answer. Your response will be added to the other learner thoughts printed below.

1. Explain how you think the balance of supply and demand affects the price of electricity.

2. If you were in the city government in San Diego, what steps would you take to solve the supply and demand problem?

Name:

Program:

City/Country:

E-mail Address:

Enter your message:

Responses:

Name: Jean Paul Passicot Guzman
Date: January 22, 2001
Country: Santiago, Chile

Response: 1. The balance in demand and supply keeps the price of electricity at the same level, without changes 2. I would construct new plants of energy so fast, to solve the supply problem.

Name: Anonymous
Date: January 23, 2001

Response: I'm sorry to hear about the energy crisis. I know the serious aspect of it because I live in the country which lacks oil, gas, etc. I think we need to help each other to make energy cheaper. We need to push international gas suppliers to provide cheaper gas.

Name: Emily Landona
Date: January 24, 2001
Country: Waterbury, CT USA

Response: 1. The price of electricity is high because the power plants are giving so much power, and it is in high demand. I think once the demand goes down the price will also go down. 2.I would build more power plants on diffrent sides of the state. Then the regions would have their own plants.

Name: Justin Myhren
Date: January 25, 2001
Country: Montgomery City, MO USA

Response: I think electricity prices will go down when people use a normal amount of electricity. I would make people rent electricity.

Name: Alex M.
Date: January 26, 2001
Program: CLS Elementary
Country: Rhinebeck, NY USA

Response: I would let California know that we are having a power shortage and tell everyone to stay calm. I would tell the people that we will be charging everyone extra fees. I would also ask people to send money to support our city.

Name: Carolyn Gibson
Date: January 19, 2001

Response: California is being taken advantage of by its energy suppliers. Its a big shame. California needs to build new plants. That is the only way I see that they can solve the problem.

Name: JeeYe
Date: February 6, 2001
Country: Seoul, Korea

Response: If there is too much supply, the price will increase. In cases when people don't want a product, the price will decrease. The balance of supply and demand affects the price. When supply isn't balanced with demand, consumers or enterprises will have problems. If necessary, the government should control supply and demand. How will the price of electricity change if the state deregulates? The price will increase greatly. Deregulation means no longer the government supports it. Private companies will charge more for a little improvement of electricity.