Posted on 03/24/2002 10:20:24 PM PST by Ernest_at_the_Beach
California could be strapped for power by 2004 because new power plants slated to be built by then might not be finished in time to meet increased demand, the California Energy Commission has warned.
Claudia Chandler, assistant executive director of the commission, said the demand for power in 2004 is expected to top 62,150 megawatts -- 4,450 megawatts more than is anticipated for this summer. A megawatt of electricity can power 750 houses.
But that doesn't necessarily mean the state will be plunged into rolling blackouts, she said. That depends on a host of factors, including an extraordinarily hot summer and whether the power plants that are scheduled to come on line by 2004 actually do so.
"There's been some foot-dragging in the licensing process of some of the plants," she said. "We need them to come on line when they said they were going to."
She said power generators that applied for the licensing process last year were gung-ho because the free-market system the state found itself in last year allowed them to make huge profits on selling energy, and many applied for licenses to build plants to capitalize on the hot market.
Then, with Gov. Gray Davis imposing price caps that are supposed to run through October, there was a gradual realization that those types of profit margins would go by the wayside.
"Last year was a boom (in the energy market) and you saw some generators proposing power plants under the assumption that it would go on into the future," Chandler said. "With a realignment of prices, there was the realization that there may not be a tremendous amount of profit in this market, and they need to make their decisions accordingly."
Those decisions include a noticeable delay in the licensing of power plants. Chandler said 10 plants were in the licensing process and were scheduled to go on line in 2004. Of those 10, only two look like they'll meet that schedule, she said.
For 2003, the state is supposed to have 5,500 megawatts come on line and another 1,600 megawatts for 2004. Chandler said they are concerned about a total of 1,500 megawatts being delayed, creating the potential problem in 2004.
But power providers such as Calpine Corp. claim the economy and the collapse of Enron have made the current energy market unfriendly for generator expansion.
Calpine spokeswoman Katherine Potter said they have delayed construction on 34 plants nationwide because of the severe industry downgrades of energy stocks and valuations.
"We won't enter construction until it's the appropriate time in the market," Potter said. "We've had softer power prices and mild weather, but hopefully we're starting to see a strengthening in the economy and more normal weather patterns."
The Energy Commission uses projections of the hottest summers to calculate demand levels, so the 62,150 megawatt figure assumes it will be an unusually hot year. If it's not a sweltering summer, however, shortages won't be an issue because demand will be less.
Another concern, according to Chandler, is a drought, which could affect the amount of hydroelectric power available during peak summer demands.
However, Chandler said, the current snowpack is deep enough that there is not a drought condition -- even though Southern California is well below average rainfall levels this winter.
Chandler said hydroelectric power in a wet season can fire up 8,000 megawatts while in a dry year it can sink to 3,500 watts
In the meantime, the governor's office is also seeking to extend the price caps on buying power --currently at $150 per megawatt hour -- as well as making a strong push for continued conservation efforts around the state to stave off potential shortages.
Steve Maviglio, an official with Gov. Gray Davis, said the governor also plans to hold power suppliers to the contracts they signed last summer that legally obligate them to build power plants within the next three to five years.
"If they don't, we'll sue them," he said.
And Southern California Edison, which, since deregulation, must purchase power from the suppliers, said it will begin ramping up conservation efforts in April by offering customers rebates and incentives.
Edison spokesman Steve Conroy said the company has been tracking the Energy Commission's concerns and agrees there need to be enough power plants to feed the state's supply.
"We are very well aware that a number of projects have been tabled," he said. "Of course, our concern is improving our financial health and getting back in the business of providing power for our customers."
(Contact David Montero of the Ventura County Star in California at dmontero(at)insidevc.com)
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Steve Maviglio, an official with Gov. Gray Davis, said the governor also plans to hold power suppliers to the contracts they signed last summer that legally obligate them to build power plants within the next three to five years.
"If they don't, we'll sue them," he said
Our main product, highly efficient gas turbines, has just went from boom not many years ago to bust now. Thanks, slimeball. My only regret is that I won't be able to cast an absentee vote in California against Davis this year, because I'm not moving back there. My last day of work here is March 29 thanks to Doofus Davis, Enron and all the other scoundrels who wrecked a once stable market.
Governor Doofus didn't impose price caps, FERC did. And they expire in September.
It is simply amazing that Davis says he'll sue companies who don't build plants, while the State routinely blocks new projects. We just had a thread here about Mirant not being allowed to make a major plant expansion because California is afraid that it would kill minnows in San Francisco Bay.
Save The Minnows, and pass the flashlight.
What CEO and board of any power producing company would want to build a power producing plant in Kali!
First of all there is the Fascist Davis and his criminal Attorney General threatening to sue any power company on any given day.
If your company makes a profit, you could be sued years downstream for making a profit. Making a profit providing electricity is evil in the eyes of the left wing maggots who control Kali.
The Rat controlled legislature is controlled by socialists and communists who are anti business, hate business and think that profits are criminal, particuliary any utility profits.
Then, you have the Fascists like Davis who hate any business except those who give massive sums to Davis and other rats to insure that their business is the one the fascist state of Kali has authorized.
The economy terrorists, the envirals hate any power plant!
Last but not least about half the population of Kali feels that they deserve a free lunch or a heavily subsidized one when it comes to their utility bills.
If I ran power companies, I would build low cost and reliable plants in Nevada and Arizona and maybe Mexico to provide the power needs after Davis, and the above cause more shortaqes/blackouts in the near future. Then, I would build power transmission lines and give the state 7% of the gross KWH costs of all electricity sent across the lines and a lower payment of 2-3% for the cities/counties where the lines are or the power flows. That should buy all the politicians. Then I would give 5% to the envirals to get them off of my back. Then add all of these costs on to the final price to all customers as a useage fee approved by the state, county, city!
In a year these leeches would be so addicted to the extra fees, I could conduct business without much problems from them. If they want to increase fees, fine, I would just tack them on the bill and say that Davis wanted 5% more and the Club Sierra needed another 10%. None of these extra fees would be hidden, the end user would know who the leech was and how much the leech got!
???
None of these extra fees would be hidden, the end user would know who the leech was and how much the leech got!
The politician's would pass a law that would force you to hide the charges in some trumpted up way!
Local enviralist rats were outraged that PG&E last year put what our electricity cost them, and the limit that they could bill us. Of course this was what drove them into bankruptcy, but the truth outraged Rat Enviralists up here!
So I just carried an enlarged copy of my bill around to show and help educate people and to drive these Rats a little more insane!
Anyway, the State of Nevada could make a fortune with power plants all over the Nev/Cal state line. You and I could call the the Ernie and Dave Power Rescuers. I could probably get a better bond rating to raise funds than Davis will get on his free electrical lunch bonds.
ROFLTTCTM-EYES!!!
I got connections in Vegas and I like the sound of that!
"If they don't, we'll sue them," he said.
This is way too confusing for me.
If power generators don't live up to their contracts to build power plants (the same power plants that Davis and the Legislature said they would condemn) California will sue the power companies.
On the other hand if power companies don't allow California to get out of long term power contracts (that Davis praised as saving the state from blackouts) then California will sue the power companies.
I guess this give new meaning to "damned if you do, damned if you don't." I sure hope the Republicans running for office do a TV commercial with Davis picture on the right of the screen saying one thing, and then Davis picture on the other side of the screen saying the exact opposite. If they did this on enough topics, I am sure that some of the people would begin to understand how much cow-excement come out of the Gov's mouth.
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