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Strategies & Market Trends : Sharck Soup
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To: besttrader who wrote (21789)5/9/2001 8:41:39 PM
From: heronwater  Read Replies (1) of 37746
 
knight,

Anyone from the Northeast care to comment on possible power outages there?

There is nothing predicted. The Northeast has had little increase of capacity of generation and transmission (lines) the past 3 decades just like other populated areas. So every year you have a slightly increased chance of some things happening at the same time, and you might have to go into a rolling blackout situation. There is little chance and even if it happened, it would be a short-term thing.

I think that a rolling blackout condition can also occur when a company miscalculates and commits too much of their generation and/or transmission to transactions with buyers outside of their local service area. When they do this, they have to blackout their local customers in order to honor their outside commitments. That is a federal regulation. The chance of this happening increases every year also, as power providers make more deals to send power to other areas. This would also be unlikely for the northeast, imo. But, it's another problem you can have when supply isn't keeping up with demand. This would happen to a company if they made big deals to send power to another area and then they had a (unexpected) string of 95 plus degree weather in their own service area. So their local demand would go up and they couldn't supply that and the outside deals at the same time.
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