-----Original Message-----
From: webmaster@cera.com [mailto:webmaster@cera.com]
Sent: Monday, July 02, 2001 9:01 PM
To: insights@cera.com
Subject: Southern Cone Power Report: Brazilian Crisis Deepens but
Voluntary Conservation Is Strong--For Now - CERA Monthly Briefing 



Title: Brazilian Power Markets: Prices Hit Maximum as Rationing Plan Begins
URL(s):	
http://www20.cera.com/eprofile?u=35&m=2537

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SOUTHERN CONE POWER REPORT: BRAZILIAN CRISIS DEEPENS BUT VOLUNTARY 
CONSERVATION IS STRONG--FOR NOW

On June 1, Brazil implemented the first phase of a voluntary rationing plan, 
including consumption quotas for each consumer class, in an effort to avoid 
rolling blackouts later in the year. Demand grew strongly in the first months 
of the year, but recent evidence suggests that the voluntary conservation 
scheme was largely successful in June. Thermal generation has also increased 
significantly, but new thermal power plants will not be online until after the 
next rainy season begins.

* Southeast hydro reservoirs fell to 28.6 percent of maximum by June 26, while 
Northeast reservoir levels were just 24.9 percent of maximum.

* Conservation will have to be deep and sustained for many months to achieve 
the needed demand reduction.

* Government initiatives to promote new generation capacity may have serious 
long-term implications for the development of a competitive power 
market.


**end**

See Attachment.

Follow abover URL for complete Monthly Briefing (7 printed pages).

E-mail Category: Monthly Briefing                                  
CERA Knowledge Area(s): Latin American Energy


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