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Contrary to the main title of the December 2012 post, Law of the Situation: the utilities did not understand, we need to admit that utilities understood very well how to avoid the Law of the Situation, as they have been able to bypass it for more than two decades (based on the 1992 U.S. Energy Policy Act). That bypass is as simple as keeping political the electricity crisis.

Contrary to that post, that admission is based on Bucky Fuller quote "You never change things by fighting the existing reality. To change something, build a new model that makes the existing model obsolete," which is presented and discussed in the post The end of soaring inequality can start with "demand-side economics" on electricity here on the EWPC Blog,  which has has 24 comments at this moment right now. There is a slightly different alternate version of that post, which has 5 updates on the GMH Blog.

The most recent story of the avoidance of the Law of the Situation can be seen in the New York Times story Japan’s Growth in Solar Power Falters as Utilities Balk, written by Jonathan Soble on March 3, 2015. After quoting both solar advocates and utilities representatives, Mr. Soble says:

Like other countries that have promoted the technology with generous state support, Japan is also struggling with the financial and technical consequences of its rapid solar growth. Solar power here is costly for consumers because of high state-mandated prices, and handling the fluctuating output of thousands of mostly small solar producers is tricky for utilities. Necessary improvements in the infrastructure have not kept pace, experts say.
Missing from the story is that the same generous state support is what allows electric utilities to avoid responding to the Law of the Situation, since the guarantee of cheap energy was lost back in 1972 when the OPEC embargo happened. Utilities have been protected from the Law of the Situation "because of high state-mandated prices" which are no longer possible to forecast under fuel volatility, so rates approved by utility commissions privatize profits for utilities that increase with fuel volatility, while, for example, socializing the losses to retail customers, as wholesale customers know how to protect themselves. 
 
While "handling the fluctuating output of thousands of mostly small solar producers is tricky" by using politics, it calls for market innovations that are developed under the assumption of the guarantee cheap information. These are markets that self correct their failures under the Law of the Situation, as can be seen, for example, in the above mentioned blog posts The end of soaring inequality can start with "demand-side economics" on electricity. By the way, this might be how the smart market process will let the new Steve Jobs connect the dots
 

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