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Continuing Turmoil in the Power Industry: What It Means for the Major Players
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******************************** Continuing Turmoil in the Power Industry: What It Means for the Major Players http://knowledge.wharton.upenn.edu/index.cfm?fa=viewfeature&id=1429 Five years ago this winter, California's wholesale power market imploded. Power prices soared. California residents endured weeks of rolling blackouts. Two California utilities were forced into bankruptcy even as their suppliers -- independent power companies -- reaped huge windfalls. Five years later, the tables have turned. Formerly bankrupt California utilities are profitable while formerly robust power generators scramble to survive. What happened? Wharton faculty and others look at the industry's unique challenges and suggest structural and management strategies that could improve its chances for sustainable growth.
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