jueves, octubre 05, 2006

On the End-State of the Power Industry Part 4

To Steve, Sean, Len, Edward, and all readers,

Thanks Sean for your comments on the extension of the Catch-22 situation that limits the U.S. to a clear vision of the End-State of the power industry. Back in 1996, I read (and quoted) that some people had clear vision, while others were foggy. The others said: go ahead and refine the vision as we go; we need to be flexible. I kept reading and learn that those other people are going to start, restart, and restart, and then they will find that they are behind the game.

Just as in Dominican Republic, a 3rd world country, the real problem is systemic. The system is the problem. By tinkering the system with "decoupling," your 10 questions, and some more, will remain unanswered. Decoupling is a symptomatic solution that will lead to more symptomatic solutions in the near future. In the mean time, others will get the vision right and win the game.

In my country we are under systemic collapse similar to that experienced during the great depression. The only difference is that the U.S. was a financial depression, whereas we are under an electric power one. That is our only advantage to pressure for action. As you can see from "a Dominican strategy," by developing EWCP as described elsewhere under EnergyPulse, my people have an opportunity to follow my lead and turn around the power sector to a clear vision.

However, in the U.S. and my country, under conventional wisdom it will be impossible to get out of the dilemma. That is why they are dilemmas. Conventional wisdom is a mechanistic thinking. A need for systemic thinking is required. That is where we stand now. Divorcing competitive activities from monopolistic activities is the way to go, as transaccion costs gets cheaper and cheaper, while fuel and environmental costs keep rising.

Regards,

José Antonio

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