California's Price Caps Raising Average Cost of Power=20 The retail price caps imposed in California are leading to higher average= =20 prices for longer periods of time as demand responsiveness is dulled and=20 supply is retarded, according to a report released by Morgan Stanley Dean= =20 Witter.
Traders interviewed by the firm said that calendar strips for 2001= =20 through 2003 have traded in excess of $100/MWh, or around $30/MWh higher th= an=20 a month ago.
What's more, the firm said, the expected trough in the forward= =20 curve =01* projected in the 2002-2003 time frame =01* "continues to move ou= t in=20 time.
"=20  The Dean Witter study reported that the change in futures pricing for the= =20 California Oregon Border (a proxy for Northern California pricing) and at= =20 Palo Verde (a proxy for Southern California pricing) trading hubs show=20 similar upward trends from June through August.=20  The study said the most alarming thing for the state is the increased threa= t=20 of power outages.
Higher priced regions like the desert Southwest and the= =20 Northwest "will suck exports out of the state and deter imports," Dean Witt= er=20 said.
The tight supply situation is pushing average prices higher, more=20 often, and increasing the risk imports won't arrive at all when they are=20 truly needed.

California's Price Caps Raising Average Cost of Power
California's Price Caps Raising Average Cost of Power=<NUMBER> The retail price caps imposed in California are leading to higher average= =<NUMBER> prices for longer periods of time as demand responsiveness is dulled and=<NUMBER> supply is retarded, according to a report released by Morgan Stanley Dean= =<NUMBER> Witter.
Traders interviewed by the firm said that calendar strips for <NUMBER>= =<NUMBER> through <NUMBER> have traded in excess of <CUR><NUMBER>/MWh, or around <CUR><NUMBER>/MWh higher th= an=<NUMBER> a month ago.
What's more, the firm said, the expected trough in the forward= =<NUMBER> curve =<NUMBER>* projected in the <NUMBER>-<NUMBER> time frame =<NUMBER>* "continues to move ou= t in=<NUMBER> time.
"=<NUMBER> The Dean Witter study reported that the change in futures pricing for the= =<NUMBER> California Oregon Border (a proxy for Northern California pricing) and at= =<NUMBER> Palo Verde (a proxy for Southern California pricing) trading hubs show=<NUMBER> similar upward trends from June through August.=<NUMBER> The study said the most alarming thing for the state is the increased threa= t=<NUMBER> of power outages.
Higher priced regions like the desert Southwest and the= =<NUMBER> Northwest "will suck exports out of the state and deter imports," Dean Witt= er=<NUMBER> said.
The tight supply situation is pushing average prices higher, more=<NUMBER> often, and increasing the risk imports won't arrive at all when they are=<NUMBER> truly needed.
demand responsiveness dulled witter study border proxy northern longer periods time outages higher power number increasing risk imports california price caps said expected