Should California Power Companies be regulated? How? Why?

Answer 1

Probably. You aren't dealing with perfect competition. It is a oligopoly, a few companies able to control the whole power system. Really, each probably has a monopoly in any given area. It is difficult for you or me to start a company to compete against it. Thus they aren't a good capitalism model for efficiency. Left to their own devises they are likely to over charge.

On the other side of it, the helpless consumer is left to pay. Power being a necessity and not a luxury adds to it. Say, some poor elderly left to die in a summer heatwave because they can't afford power.

But what regulations I would say depends on what kind of control they have, and what assistance the California Government has given them to set up in the first place. I would say, that they should have to justify their prices by providing their expenses.