See attached WSJ article, particularly the last paragraph.
The message is:  there has not been enough deregulation;  the government is still very much in  the way.
California is a perfect example:  the market has responded to  demand increases with thousands of megawatts of new generation, but state and  local officials have not sited them, and companies like Enron are offering  price protection, but utilities are not allowed to take advantage.

California Power Issue