Electricity, Contract Rules, and the Environment: Welcome to the Hotel California
One of the major news stories of this year is the implosion of California's electric power restructuring. The most capital-intensive industry in the United States, in the largest state in the Union, which itself is one of the largest economies in the world, came completely unglued. This focused attention on how we produce, distribute, and consume electric power and its profound implications, not only for social welfare, but for the environment.1