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News Analysis

Fuel costs drive electric prices, but generators seem perfectly willing to pay a premium for fuel when they're getting top dollar for power.
Fortnightly Magazine - March 1 2001

be a huge economic dislocation. It's certainly going to be a drag on the economy, because this energy problem was not created overnight."

And again, electricity and gas are practically one-in-the-same. "The volatility that you're going to see at the California border in gas prices is going to be directly tied to power demand for the foreseeable future. Power price volatility is going to be very high, so gas price volatility is going to be very high."

Looking at the situation philosophically and with caution, Linden recalls that years ago, he thought he could predict the future, but says he has since grown wiser in dispensing advice."I now advise clients that they have to assume ignorance and uncertainty in all their business positions, and I certainly confess to my own ignorance and uncertainty in the current circumstances. ... That's my advice to everyone in California: Assume you know nothing."

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