New York Times...
Power supply levels in CA this week....
---------------------- Forwarded by Jennifer Rudolph/HOU/EES on 12/06/2000 
08:36 AM ---------------------------
   Elizabeth Peters                12/06/2000 08:09 AM

To: Jennifer Rudolph/HOU/EES@EES
cc:  
Subject: Crain and deregulation: Once More, California Comes Close to Running 
Out of Electricity

California team
Beth
---------------------- Forwarded by Elizabeth Peters/HOU/EES on 12/06/2000 
08:09 AM ---------------------------


djcustomclips@djinteractive.com on 12/06/2000 04:56:50 AM
Please respond to nobody@mail1.djnr.com
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cc:  
Subject: Crain and deregulation: Once More, California Comes Close to Running 
Out of Electricity


National Desk; Section A
Once More, California Comes Close to Running Out of Electricity
By LAURA M. HOLSON

12/06/2000
The New York Times
Page 20, Column 3
c. 2000 New York Times Company

   LOS ANGELES, Dec. 5 -- For the second time in as many days, power
companies today were forced to shut down electricity to customers
statewide as California came the closest it has this season to running
out of power, state officials said.

   As late as tonight, energy officials were concerned that they would
be forced to announce a last-resort emergency as power reserves crept
close to a dangerous level of 1.5 percent, and utility companies would
have been required to institute rolling hourlong blackouts in various
parts of the state. Such last-resort steps have never been taken in
California before.
   On Monday, Californians were urged to postpone turning on Christmas
lights until later in the evening as use hit near record levels for this
time of year.

   Then, as today, state officials declared an intermediate-level
emergency, which meant power reserves dipped to 5 percent and utilities
began cutting service to large customers who had agreed to the cuts in
exchange for lower rates. In a Stage 3 emergency, the worst situation,
any customer's service can be shut off.

   ''We are riding the edge right now,'' said Patrick Dorinson, a
spokesman for the California Independent System Operator, which manages
the electricity system for 75 percent of the state and charged with
ensuring that there is enough power for users. ''This will only get
tougher.''

   Mr. Dorinson said the shortfall  was the result of several factors,
including the fact that a number of power plants were not running
because of maintenance or would have violated air quality standards if
they had. Additionally, power imports from the Northwest were cut in
half because of a cold snap there, he said.

   Californians have been plagued since last May by both an electricity
supply shortage as well as high prices, the result of deregulation.
Consumers in San Diego revolted last summer when electricity bills
nearly tripled and when officials said the state had severe energy
shortfalls 23 times. But emergencies like the one this week are almost
unheard of in late fall when usage is usually low compared with summer.

   ''If you have rolling blackouts, that shows that the system is
failing,''  said Paul Jaskow, a professor of economics at the
Massachusetts Institute of Technology who has studied the deregulation
of California's electricity market. Before deregulation, he added, ''the
system was designed so that this happened rarely. If it happens
repeatedly businesses and customers will get angry.''

   Steve Maviglio, the press secretary for Gov. Gray Davis, said: ''It
is the perfect storm of the energy situation in California. This is Day
1 of what is to be a two-week problem.''



Folder Name: Crain and deregulation
Relevance Score on Scale of 100: 92

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