So basically they are buying up a bunch of extra energy at a cheaper rate due to the cap, and then in a few years they are going to sell it to us at an enormous profit, using the loss of the cap as justification to do so? Did I get that right?

Correct. But, the alternative could be much worse--remember CA's energy mess a few years ago. There is no mercy in markets; PPL won't have any bargaining pwer as the end nears.

Nah.... the power companies and railroad benefit me more than a bunch of kayakers would.

So much for "deregulation".

Electrical power "deregulation" was a scheme pushed by speculators for a chance to make money, somewhat like Enron did in California. Legislators bought into the idea because it seemed like it fit the Republican goal for less government involvement in private business. The quote above from this news article proves just how successful that strategy really was.