... finger to the other, outlining in public debate how the other side was at fault in creating the shortfall. Those in favor of deregulation cried that the legislation had not yet gone far enough for the built-in efficiencies of market economics to take effect. By deregulating the power generation companies but enforcing price ceilings on the distributors, the State of California had interfered with the market in a way that caused a dramatic excess of demand over supply. Opponents of electricity deregulation point to California's problems as a case study of why utilities should be regulated. They argued natural monopolies such as electricity utilities will not see the efficiencies that traditional capitalist markets enjoy. Both sides of the argument make fair points, but there is one inescapable fact. The electricity supply and distribution markets are currently in monopolistic conditions and the entire state's economy is strongly dependent on their products. ...

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