[33668] in North American Network Operators' Group
Re: Second day of rolling blackouts starts
daemon@ATHENA.MIT.EDU (Shawn McMahon)
Thu Jan 18 20:45:10 2001
Date: Thu, 18 Jan 2001 19:54:40 -0500
From: Shawn McMahon <smcmahon@eiv.com>
To: nanog@merit.edu
Message-ID: <20010118195440.A13822@eiv.com>
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In-Reply-To: <F062E72E4BA2D4119F1700B0D03D205F3AC1@mail.tonbu.com>; from mbutler@tonbu.com on Thu, Jan 18, 2001 at 03:48:58PM -0800
Errors-To: owner-nanog-outgoing@merit.edu
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On Thu, Jan 18, 2001 at 03:48:58PM -0800, Mathew Butler wrote:
> Los Angeles rates have stayed the same, and they're not having any problems.
> (It's a public utility, and thus wasn't forced into competition at the same
> rate as the private companies.)
This all proves that if you're looking for a place to put a data center, you
need to keep this in mind:
X amount of power takes Y amount of money to produce.
You can either pay it to a state-sponsored monopoly, or you can pay it to a
private company competing freely, or you can force artificially low prices
through pseudo-private companies operating under cap that generates Y minus
N amount of income, and watch X minus N amount of power be generated.
No amount of legislation will make Y minus N amount of money produce X amount
of power. No company that is truly competing will charge Y minus N, because
they make more money if they charge Y.
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