While the study could not find a "smoking gun", it did point out a shortage of electricity generating capacity, a flawed market design from the state's attempt at deregulation, generator market power and regulatory blunders all contributed to the energy crisis that led to six days of rolling blackouts in the winter of 2000-2001.
The study found California was also hit by circumstances beyond its control such as the rising cost of natural gas and air quality credits in 2001, which made electricity production more costly. In addition, a drought in the northwest US limited the supply of electricity from hydroelectric sources.
No doubt Australia's politicians will be keen to avoid a similar disaster as they currently debate over how to best reform this country's own $100 billion energy market.
