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This story appeared on http://www.individual.com December 11, 2000
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[B] Repeats: Calif. power resources will be 3,752 Mw short in 2001



By David Feliciano, BridgeNews

Scottsdale, Ariz.--Dec. 7--California resources and reserves for
electricity will be 3,752 megawatts short of the anticipated load in 2001,
California Independent System Operator (ISO) President and CEO Terry Winter
said Thursday at the annual Western Systems Coordinating Council meeting.



*                         *                        *




"I'm concerned about supply," Winter said.



"Without sufficient supply, markets will set socially and politically
unacceptable price levels (for wholesale power)"



Winter said California power resources will total 46,679 Mw in 2001, but
load is expected to reach well over 50,000 Mw. Over 17,000 Mw of new 
generation
is planned for the state, but most new power plants are not expected to begin
service until 2002 and beyond.



Not helping California's cause, Winter said, are reduced imports of power
this year from neighboring states, down from 7,500 Mw in November of 1999 to
3,900 Mw this November.



Winter also pointed to the affect of a soaring natural gas market. "You can
build generation, but in California, natural gas and emissions are the next
problems. Natural gas is running into the same problem electricity has...there
is a shortage."



Due in part to the above California wholesale power prices have skyrocketed
since May, leading to rolling blackouts in San Francisco in June and a series
of conservation emergencies since that time. The state has been under a power
conservation warning much of this week.



As tools to solve California power woes, Winter suggested the ISO file for
an extension of price cap authority for power until markets are demonstrated 
to
be workably competitive. The ISO's authority to set price caps, which 
currently
stands at $250 per Mw/hour expired Nov. 15. The Federal Energy Regulatory
Commission on Nov. 1 proposed caps of $150 Mw/hour, but has yet to officially
rule on the matter.



Winter also called for the California Public Utilities Commission to allow
full peak requirements to be forward contracted and hedged by load.  End



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