Costs of Deregulation Continue for Taxpayers

So the state has entered into long-term contracts to buy electricity that it sold at a $46-million loss this summer. It was selling power for one-fifth of what it paid. Guess who is going to end up making up the difference? Taxpayers.

So-called deregulation is a myth. The only thing that was deregulated were the physical assets of the power companies. The cap on rates remains firmly in place, and taxpayers, one way or the other, will end up paying the full rate.

It is another example of government saying, “We’ve got to do something to show the people that we’re on top of things.”

What is the state going to deregulate next? I hope it will be cars, because I’d like to buy a brand-new Corvette for around $5,000. The other taxpayers can chip in to make up the difference.

Burl Estes

Mission Viejo

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Re “Chaos, Inexperience Hobbled Power Buyers,” Aug 12:

The governor uses funds from the California treasury to purchase electricity at a high price. This money is used so that taxpayers do not have to use their own money.

The state then sells electricity at a lower price than it paid because the high price caused by the state overpaying causes people to use less electricity, thus creating a surplus in the supply that the state has purchased.

If this is an example of taxation with representation, then taxation without representation is looking better and better.

William V. Ferraro

Seal Beach