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Last week’s decision by California utilities to halt power to about two million residents, to avoid downed electricity lines sparking wildfires, plunged parts of the Golden State into darkness – and raised the question of why the world’s fifth-largest economy can’t keep its lights on. James Sweeney, a Hoover Institution senior fellow who studies electricity market problems, explains why this is a matter of risk management in America’s wealthiest and most populous state.
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