Posted on 03/28/2002 11:31:20 AM PST by Ernest_at_the_Beach
WASHINGTON, March 27 (Reuters) - U.S. energy regulators on Wednesday unveiled a new measure to prevent another California power shortage by allowing Sempra Energy (NYSE:SRE - news) to import more electricity from Mexico.
The Federal Energy Regulatory Commission said the boost in imports could save San Diego residents $3 million per year and California ratepayers $10 million annually, once new upgrades are completed.
``You spend a nickel to save a dollar. It's a pretty good deal,'' said FERC Chairman Pat Wood.
The FERC approved an order that allows Sempra subsidiary San Diego Gas and Electric Co. to recover from rate-payers the cost of upgrading its Miguel-Mission and Imperial Valley lines stretching across Southern California and into Mexico.
Last year, electricity shortages led to widespread black-outs and the bankruptcy of the state's biggest utility, PG&E Corp's (NYSE:PCG - news) Pacific Gas and Electric Co.
Unexpected unit outages and skimpy hydropower supplies left California utilities scrambling for power last year, and sent prices soaring to 10 times above normal levels.
The FERC's projected savings are based on 1,360 megawatts of generation that will flow over the new transmission wires.
However, when the cross-border electricity lines eventually reach full capacity of 3,810 megawatts, San Diego customers will save $26 million and the state $174 million annually, the FERC said. One megawatt powers roughly 1,000 homes.
In comments to reporters after the FERC meeting, Wood affirmed that the commission is still concerned about the possibility for a repeat of last year's price spikes in California. ``It's messy out there,'' Wood said.
The FERC has set Sept. 30 as the expiration date for the price caps it set last year to bring the state's rampant power market under control. Some industry officials are concerned that new problems could occur once the controls come off.
To help reduce chances for a repeat, the FERC asked the state's grid operator to submit a restructuring plan by May 1.
The California Independent System Operator must file a restructuring plan after a FERC-commissioned study in January found numerous flaws in its governance, which it said worsened the state's power crisis.
The FERC will hold a conference in San Francisco on April 4-5 to help the state devise that plan.
California-related issues will be ``a high-priority issue after we get that (ISO) filing in May,'' Wood said, and will dominate the commission's summer agenda.
In the meantime, the commission still must resolve issues related to a regional transmission grid it is trying to establish in the U.S. Midwest region, Wood said.
Separately, the FERC on Wednesday affirmed a November 2001 order which tapped California's water department as the state's sole purchaser of wholesale power on behalf of state utilities who are no longer credit-worthy.
The FERC also barred the water board's access to market-sensitive information held by the state's grid operator.
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The Federal Energy Regulatory Commission said the boost in imports could save San Diego residents $3 million per year and California ratepayers $10 million annually, once new upgrades are completed.
....
The FERC approved an order that allows Sempra subsidiary San Diego Gas and Electric Co. to recover from rate-payers the cost of upgrading its Miguel-Mission and Imperial Valley lines stretching across Southern California and into Mexico.
Here's the headline this summer, before the "once new upgrades are complete," but after beginning recovery of cost: "San Diego electricity rates sky high! Whaaa! It's all Bush and ENRON's fault!!!"
Unexpected unit outages and skimpy hydropower supplies left California utilities scrambling for power last year...
...surprising only the press. The operators of the generators fully expected the routine maintenance outages.
...and sent prices soaring to 10 times above normal levels.
Which brought their kilowatt hour price to about 1/2 what everybody else in the country pays.
One megawatt powers roughly 1,000 homes.
For one hour. Assuming you have 10 100 Watt lightbulbs or less burning in your house. Extras like A/C and stuff are extra.
The FERC has set Sept. 30 as the expiration date for the price caps it set last year to bring the state's rampant power market under control. Some industry officials are concerned that new problems could occur once the controls come off.
Most intelligent market analysts suggest that the price "controls" are the biggest problem, not the ending of same. See also: Rent control in NYC and its effect on housing availability.
Last, but certainly not least:
Separately, the FERC on Wednesday affirmed a November 2001 order which tapped California's water department as the state's sole purchaser of wholesale power on behalf of state utilities who are no longer credit-worthy.
Let's drag the water suppliers' money supply into the incredible mess Gray-out Davis began. That way, not only will folks sit in the dark this summer, they can watch their lawns die.
I was under the impression that energy costs were higher here than elsewhere.
But then it is hard to figure out what the cost is here after they play the games with the transfer payments!
Gray-out davis assigned power purchasing to the State water dept. Just another example of his "crisis (mis)management."
Hell, why not. They have made it impossible to do business in this country any more. Anyway, America already imports everything else she needs. Food, lumber, petroleum, steel, computers, bathtubs...the list is endless.
The ends don't justify the means (second time today).
The ends don't justify the means (second time today).
LOL and I said it twice!!!
I think the system is to blame.
Sometimes after you post a reply it comes back to you without showing the reply you just made.
So , since you don't see it you hit the post button again!
I now always hit the refresh button to see if it took!
We FReepers had a whole thread on this a year or so ago, and it turns out [based on DOE statistics] that in California, one megawatt of generation is enough to power only 650 "average" homes. That, too, is misleading, since homes in the coastal areas of California typically do not have air conditioning. Homes in the hot Central Valley typically do.
Also, folks should be careful not to confuse power with energy. Power [watts or megawatts] is the rate of energy use. Energy [watt-hours or megawatt-hours] is the amount of energy used.
So if you add up all the energy used in California homes in a "typical" year (78,000 MWH in 2000), divide by the number of "residential customers" (11 million), you come up with around 7.12 megawatt-hours of energy per residential customer per year. Divide that by 365.25 days and again by 24 hours in a day, and you get 810 watts of power - averaged as if it were being used around the clock for an entire year.
So, using these numbers tells you that you could power 1200 California homes with one megawatt of capacity.
Of course, if you cross-check with the U.S. Census Bureau, you will find that there are 13 million households in California, not 11 million.
And...I'm out of time...
Care to predict how (un)smoothly this request will be followed?
Isn't this about the 3rd or 4th or 5th time FERC has asked the CA ISO to accomplish this task?
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