If At First You Don't Succeed...

Rebecca Smith reports on California's reentry into the Electricity Auction game. After 18 months of market simulations and a $200 million investment, tomorrow the state will begin holding daily auctions of electricity resources for delivery the next day (with a $2,500/megawatt hour cap.)

Smith notes:

"State officials are nervous, nevertheless, because California's past experience with a "day ahead" market was a disaster and this latest effort reflects a long effort and $200 million investment. The 2000-01 western energy crisis pushed California's biggest utility, Pacific Gas & Electric Co., into bankruptcy protection and resulted in tens of billions of dollars of debts that utility customers still are repaying."

California Restarts Daily Electricity Auction [Wall Street Journal]