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California: Energy shortage called hoax to drive up prices
Los Angeles Daily News ^ | January 18, 2002 | Jennifer Coleman

Posted on 01/18/2002 6:42:43 AM PST by John Jorsett

SACRAMENTO -- On the anniversary of last year's rolling blackouts, consumer advocates, energy suppliers and state power officials disagreed on the causes of the energy shortage -- or whether a shortage even existed.

A report released Thursday by the Foundation for Taxpayer and Consumer Rights called the energy shortage a hoax manufactured by power suppliers who wanted to drive up prices.

The report came on the one-year anniversary of the first of six days of rolling blackouts ordered in California last year.

An analysis of prices and supply and demand data led foundation president Harvey Rosenfield to conclude "there never was an energy shortage," he said. "A handful of energy companies manipulated supplies to drive up prices and reap windfall profits."

The Independent System Operator, which oversees most of the state's power grid, has more than 47,000 megawatts available in its territory, Rosenfield said, but the state's demand, especially on the days when the ISO ordered blackouts, never topped 40,000 megawatts.

ISO spokesman Gregg Fishman agreed that some power companies likely manipulated the market, but stressed "there was a shortage that was very real."

The ISO operates much of California's electricity grid and the spot market where last-minute energy to balance the grid is bought.

Last year's shortage came from years of growth in California and the West, less power produced by hydroelectric plants in the drought-stricken Northwest and a large number of power plants that were off-line for maintenance.

Fishman said several natural gas-fired plants that operated heavily during 2000 were legitimately unavailable in early 2001. Any ability to manipulate the market "was based at least partly on a real shortage."

Jan Smutny-Jones, executive director of the Independent Energy Producers, called the foundation's charges "fundamentally untrue."

Many power plants were off-line for repairs because most are over 30 years old, he said. The problems last year stemmed from fundamental flaws in the state's regulation, Smutny-Jones said, including regulators' failure to let the utilities arrange long-term contracts for power.


TOPICS: News/Current Events
KEYWORDS: calpowercrisis; michaeldobbs
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The Independent System Operator, which oversees most of the state's power grid, has more than 47,000 megawatts available in its territory, Rosenfield said, but the state's demand, especially on the days when the ISO ordered blackouts, never topped 40,000 megawatts.

Areas of the state had more power than they needed, but the transmission lines were full. That was the problem. It doesn't matter if San Diego has excessive megawatts if there's no way of transporting them to San Francisco.

1 posted on 01/18/2002 6:42:43 AM PST by John Jorsett
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To: John Jorsett
are you trying to introduce facts into this discussion?? how dare you!!
2 posted on 01/18/2002 6:45:31 AM PST by babble-on
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To: John Jorsett
How do you know this? Your homepage reveals a long-time concern with energy issues but gives no details.
3 posted on 01/18/2002 6:48:47 AM PST by liberallarry
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To: liberallarry
How do you know this?

How does he know what? That the north south transmission lines were at full capacity? I remember it being on the news at that time. Blackouts in the Sacramento area because for whatever reason, north/south transmission capacity was not possible. Also, a lack of hydro in the north.

4 posted on 01/18/2002 6:56:22 AM PST by ecomcon
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To: liberallarry
How do I know what?
5 posted on 01/18/2002 6:56:25 AM PST by John Jorsett
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To: liberallarry; Ernest_at_the_Beach
It's been a long known fact in Kalifornika that there are inadequate north-south links. this is nothing new.

What's news here is that Red Harvey is starting to figure out that his man, Gray-out Davis, permitted his major campaign contributors to manipulate power availability for political expediency, to push bills in the legislature.

6 posted on 01/18/2002 6:58:40 AM PST by editor-surveyor
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To: John Jorsett
"...the transmission lines were full. That was the problem"

How do you know that? I remember reading that the basic cause was inadequate capacity - population growth had outstripped power plant construction so that excess capacity - necessary to cover emergency situations - had dropped almost to zero. All I can remember reading about the transmission grid was that it was not efficiently constructed - making it impossible to distribute available supplies everywhere needed. Inotherwords, there were critical bottlenecks. But I never saw, or forgot, the details.

7 posted on 01/18/2002 7:12:41 AM PST by liberallarry
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To: John Jorsett
For thos requiring a source for my transmission line contention: California's 'Path 15' Upgrade Hopes to Ease Energy Woes

Pertinent passage:
Path 15, an 84-mile stretch of electrical transmission lines in the Central Valley connecting Southern California with the northern part of the state, has been targeted for expansion for more than a decade. Capacity in this area is not enough to meet fluctuating consumer demands and carry the necessary electricity load, especially during the winter. In fact, state grid officials report that this bottleneck contributed to blackouts in Northern California last winter.

8 posted on 01/18/2002 7:14:48 AM PST by John Jorsett
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To: editor-surveyor;John Jorsett;Calpowercrisis;randita;SierraWasp; Carry_Okie; okie01; socal_parrot...
And the 2002 campaign heats up!

To find all articles tagged or indexed using calpowercrisis

Click here: calpowercrisis

To find all articles tagged or indexed using calgov2002

Click here: calgov2002

9 posted on 01/18/2002 11:14:01 AM PST by Ernest_at_the_Beach
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To: liberallarry
Have you been reading the articles many of us have been posting on Calpowercrisis?
10 posted on 01/18/2002 11:16:04 AM PST by Ernest_at_the_Beach
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To: John Jorsett
Harvey Rosenfeld is a well-known Marxist out in California who has been peddling this crap from the start. He's dusted off his charges from last year and is airing them again.

He's a liar, pure and simple.

11 posted on 01/18/2002 11:21:51 AM PST by Dog Gone
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To: Ernest_at_the_Beach
Not as many as I should have - evidently. I'll try to remedy that but truly I feel like a slow old man who somehow got onto the field during the Olympic trials. No matter how hard I try I just can't keep up.
12 posted on 01/18/2002 11:35:19 AM PST by liberallarry
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To: Ernest_at_the_Beach
Not as many as I should have - evidently. I'll try to remedy that but truly I feel like a slow old man who somehow got onto the field during the Olympic trials. No matter how hard I try I just can't keep up.
13 posted on 01/18/2002 11:35:34 AM PST by liberallarry
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To: liberallarry
LOL!

Keeping up on FreeRepublic is analogous to drinking out of a firehose!

I flagged you on an article from Jan 2001 that summarizes things nicely!

14 posted on 01/18/2002 11:39:28 AM PST by Ernest_at_the_Beach
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To: John Jorsett; Ernest_at_the_beach
I don't know what the heck was going on... but after 8 years of Clinton I'd it's just as likely that the Governors mansion was in on the scam as much as any power company. Didn't Davis hire a bunch of energy dudes to help him "manage" these negotiations? Wasn't it sheer folly to put the state at the mercy of the spot market? Wasn't it more insanity to sign long term contracts at a time when prices were 3 times the average? Is Davis just completely ignorant about capitalism, or did he use his "big government ideology" as a cover to run an elaborate scam on the taxpayers of this state?

The fish stinks from the head down. Did Davis conspire with the power companies to loot our state treasury with an elaborate, Clintonian scheme?

15 posted on 01/18/2002 11:57:22 AM PST by monkeyshine
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To: John Jorsett
Never mind that FERC investigated this and found there was no gouging or manipulation of the market.

FERC did order something like $10 million to be returned to the State of CA from several power companies, but that money was not refunds of overcharged rates. It was refund of surcharges that had been placed on the purchases because CA was way in arrears on paying its bills.

Rosenfield and so many others just like him have no regard of any facts. Reality is how they perceive it as they pursue their social(ist) agenda.

16 posted on 01/19/2002 6:35:04 AM PST by randita
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To: liberallarry
Both of you are correct.

Liberallarry posted, "How do you know that? I remember reading that the basic cause was inadequate capacity - population growth had outstripped power plant construction so that excess capacity - necessary to cover emergency situations - had dropped almost to zero."

This shortage of electrical power supply production started when MoonBeam Brown was sworn in as governor and as chief hand maiden of the envirals who enabled him to be elected.

MoonBeam started the famous era of limits. That meant no new powerplants and other capital investments as per the envirals who hate Californians who work for businesses!

Then, add the rapid increases in population and businesses in California since Moonbeam!. Combine that with zero new Power Plants with the exception of the couple that were being completed when the era of limits came in! We last two nuclear plants and many large coal and other fossil fuel plants from then to the power crisis!

The lack of transmission capability is part of the story. I just haven't kept up with that part. John and others are more on target with aspect!

One of the prime reasons that we did not have more blackouts last year besides the cooler summer was the number of businesses in Cali that went bankrupt during our recession and post 9/11 or minimized their hours.

If we come back to full economy (2000), we will be right back into a power shortage even with the few new plants that have been opened!

Don't worry about not keeping up. Even with the great knowledge base here on Free Republic and Ernest's indexing, it is really impossible to keep track of it!

Happy New Year to the liberal who admits to being a liberal, and who contributes to Free Republic.

17 posted on 01/19/2002 10:17:45 AM PST by Grampa Dave
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To: Grampa Dave
Thanks for the encouragement Gramps. It's nice to know that all the old men are struggling and even nicer to hear that the young-uns aren't doing much better.

As you predicted we differ on some of the issues. While I agree that Jerry Brown was definitely Moon Beam Jerry and that his era of limits was not too well concieved and had much to do with our current problems, I think the effort had to be made and will continue to have to be made. The world is not getting larger while the population continues to grow.

Nor is the Left the only side to come up with government programs that don't work as intended (or at all) - nor can the problems be solved by keeping government out of it. My view is that these problems are really, really difficult and thus mistakes are inevitable. All we can hope for is the flexibility to recognize the mistakes quickly and move on.

18 posted on 01/19/2002 12:57:50 PM PST by liberallarry
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To: liberallarry
Unfortunately the ability to recognize mistakes and move on rapidly with better decisions only happens in the real market place.

Whenever we try to have government determine what to do, we end up with every vested interest lined up with their beggars cups wanting part of the action. Most of the time actions is delayed or never happens. Look at how long it took to build a small freeway in N. Cali after the big earthquake. Every special interest group in N. California got paid off. Later in S. California when more freeways dropped, they let the private sector do its thing. In less than a year the freeways were replaced in S. Cali.. We took over 10 years up here and parts of some interchanges are still screwed up!

Then, when corporations get the government involved to help them make money instead of innovative new ways to make money, we end up with massive disasters on that end! Enron was involved with the Clintoons throughout X42's term. Favors were done and Enron benefitted from political $'s instead better business technologies. When all of this comes, out we will see Ken Lay in bed with the Clintoons and their people for over 8 years, from sweetheart deals in India to the Kyota Global Warming farce.

19 posted on 01/19/2002 1:09:55 PM PST by Grampa Dave
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To: Ernest_at_the_Beach
To find all articles tagged or indexed using calpowercrisis, click below:
  click here >>> calpowercrisis <<< click here  
(To view all FR Bump Lists, click here)

20 posted on 01/19/2002 1:47:31 PM PST by backhoe
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