Need help with my writing homework on Californias Electricity Crisis During 2000 2001. Write a 2750 word paper answering;

Need help with my writing homework on Californias Electricity Crisis During 2000 2001. Write a 2750 word paper answering; The state suffered multiple large-scale power black-outs which adversely affected many businesses dependent on electricity for their running, which, in turn, inconvenienced a large number of retail consumers.

The state had installed a generating capacity of 45 gigawatts but at the time of the frequent power black-out, the demand was at 28 gigawatts (Sweeney 89). Energy companies created a demand-supply gap to create an artificial shortage. Energy traders took advantage of the situation and sold electricity at premium prices which sometimes were 20 times its normal value. In addition, this caused the bankruptcy of Pacific Gas and Electric Company and the near bankruptcy of Southern California Edison (Sweeney 123).

The power blackout affected over 97,000 customers spread across San Francisco Bay and San Diego which cost the state $40 to $45 billion during the period. One of the energy supply wholesalers became very notorious for inflating the electricity prices and, in turn, reaping huge profits from the crisis. The responsible company was Enron Corporation.

Trouble first cropped up in mid-2000 when the power bills went so high in the San Diego areas. Energy experts warned of an energy crisis in the state, but the governor did very little to avert it. The state legislation pushed the governor to act on the warning, but he did not respond, which became a crisis that caused the state to lose billions in revenue (Weare 28).

The governor declared a state of emergency in the energy crisis on January 17, 2001, which allowed the state to buy electricity for the financially cramped utility companies. The emergency authority also allowed the governor to order the streamline of the California Energy Commission in the application process for new power plants in the state.

With reference to the discussion questions provided, this paper will assess what happened during the electricity power crisis in California between 2000 and 2001 and discuss how different market designs and smart grid technology could prevent the crisis from happening again.&nbsp. &nbsp.