Sonny ---an article on the California power mess :
December 8, 2000
California Power Still on Alert
By THE ASSOCIATED PRESS
Filed at 2:04 p.m. ET
FOLSOM, Calif. (AP) -- Officials overseeing the
state's strained electric grid remained on alert
Friday, a day after they averted blackouts by
shutting down enormous pumps that send water
to central and southern California. Their fears
were eased slightly by the decreasing likelihood
that a cold front would push into the state this
weekend.
On Thursday, California declared an
unprecedented Stage Three electricity alert after
its overwhelmed electric grid -- strapped by cold
weather, idled power plants and scant supplies --
struggled to meet demands.
The alert, which lasted about two hours, allowed
operators to obtain emergency power, ask
certain customers to curtail usage and warn of
possible blackouts.
Officials feared that chilly weekend weather
would boost demand for energy, but the National
Weather Service said Friday it was unlikely that a
previously predicted cold front would arrive.
Forecasters now put weekend temperatures
around normal.
``As far as challenging the power grid, it doesn't appear there will be a rare
California arctic outbreak at this point,'' said forecaster John Juskie.
Normal temperatures could bring some relief to the state, but power supplies
remain dangerously low, said a spokesman with the California Independent
System Operator. The ISO controls the power grid for much of the western
United States.
``That would be welcome news to everyone here, but we are preparing as if
the cold snap is coming. We can't afford to let our guard down, especially
with the crunches we've been having,'' said the ISO's Pat Dorinson.
If enough power can't be found when demand peaks, the ISO could order
rotating blackouts in which blocks of up to 100,000 customers would be
without power for up to an hour. In the winter months, that's especially
dangerous, because the peak is about 6 p.m., said Jim Detmers, managing
director of operations at ISO.
``It's dark, it's foggy. The last thing I want to have happen is to have a school
bus go through an intersection where the lights have just gone dark,'' he said.
``What do I tell those parents? That we didn't do enough here to keep the
lights on?''
Though power demands usually lessen over the weekend when commercial
customers don't need it, Detmers said a large transmission line and a power
plant will both be down for repairs this weekend, making those days critical.
The power grid managers avoided blackouts Thursday by tapping electricity
intended for the pumps that push water from Northern California to the
central and southern regions of the state.
By temporarily halting the two-story pumps that suck water from the
Sacramento-San Joaquin River Delta east of San Francisco, authorities
obtained an additional 500 megawatts.
Demand on the grid reached 31,600 megawatts Thursday evening, nearly the
maximum available. Reserves dipped below 1,000 megawatts, prompting the
alert. One megawatt powers 1,000 homes.
``If we're short by 500 megawatts, that's 500,000 people affected (by
blackouts). If we're short 1,000 megawatts, that's a million people,'' said ISO
spokeswoman Stephanie McCorkle.
Hundreds of companies cut their electricity usage, and others awaited
notification to do likewise. Computer chip maker Intel said it was prepared to
turn off 50 percent of the lights at its 6,500-employee Folsom campus if
necessary.
``If that's not enough, we'll take the lights down 100 percent and work in the
dark,'' said Bill Mueller, Intel's director of communications.
Gov. Gray Davis said the problems stemmed in part from flaws in
California's newly deregulated electricity system, including huge increases in
the cost of wholesale power.
``We're simply not ready for deregulation in California,'' the governor said.
``California is riding point on this deregulation experiment,'' Davis added.
``The problem is, I can't control the process. There are too many players.''
Under a 1996 law, California's investor-owned monopoly utilities were
required to sell off their power-generating assets, such as dams and power
plants, and purchase electricity on the open market.
The goal was to lower prices to consumers through a competitive market,
but skyrocketing energy costs sent market prices sharply higher.
San Diego Gas and Electric Co., with 1.2 million customers in San Diego and
southern Orange County, was the first to complete its transition. It passed on
the costs of wholesale electricity to its customers, resulting in a doubling and
tripling of customers' bills. The outcry prompted state and federal
investigations.
Pacific Gas and Electric Co., with 4.5 million customers in Northern and
Central California, and Southern California Edison Co., with 4.2 million, have
yet to fully deregulate. They say they have paid more than $5 billion in excess
wholesale charges since the summer and both sought permission from state
regulators and federal courts to pass those charges to customers.
Deregulation's political popularity during the last decade made power plant
builders wary of building in the state. As a result, electricity supplies
remained stagnant at a time when the state's population exploded and
high-tech companies boomed.
Eight new plants have been licensed since 1998, but the soonest any will
begin operation is next summer. State officials believe costs will ease as that
new energy becomes available.
Another article ---California is selling power to out of state utilities :
quote.bloomberg.com
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