From around the wires, here's why the power breakdown happened Shorthand for a lot of this: Too many people want socialism; a tax supported zero electricity rate while the latest tech is used. As a result here is what caused the blackout. Much longer essay on the total history and possible solutions is here courtesy of Instapundit; Glenn Reynolds if you haven't already read it..

1. No significant additions have been made to the grid in 20 years plus decades of neglect.
2. We have added useage for twenty years without adding capacity. Air conditioners and computers especially.
3. There hasn't been major spending to improve transmission lines by the state since the 1970s and no major work by utilities since the 1960s.
4. Investors won't invest in something that can't make money. Rate control, state to state rule changes, and constant law suits over rates.
5. Nobody wants transmission lines in their backyard. "Consumer Groups" have stopped all construction when it dared rear its ugly head.
6. There is a patchwork of dozens of local power utilities - some private companies, others state-owned - with different operating rules. (Everybody wants their piece of the pie, political clout, and bribes to keep a system operating)
7. While investors withhold their funds until the complex process ends, utilities have stalled their own upgrades because rate caps prevent them from charging more to recoup investments. (Again, consumers will not pay for electricity)
8. New York State's high-voltage electric transmission system reported that nine out of 10 electricity capacity-boosting projects across the state haven't cleared the hurdles required to build them. All environmental.

Add to this the Congress trying to protect all the local turf and you have blackout. Many are saying that there will be nothing done because powerful local utilities like TVA with very low rates will not share and have congress in their pockets.