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California Returns to the Edge of an Emergency on Electricity
http://partners.nytimes.com/2000/11/17/national/17POWE.html

November 17, 2000

By BARBARA WHITAKER

LOS ANGELES, Nov. 16   California got a cold dose of reality this
week as temperatures dropped to unseasonably low levels, resulting
in warnings about possible electricity blackouts ahead and
reminders that steep increases in natural gas prices might be
coming.

For three days running, the state's Independent System Operator,
the agency that oversees the high-voltage power grid serving 75
percent of the state, declared Stage 2 Electrical Emergencies as
reserves dropped to less than 5 percent on Monday, Tuesday and
Wednesday. If reserves fall below 1.5 percent, a Stage 3 emergency
is declared and rotating blackouts are possible.

Officials said late Wednesday that they hoped a warming trend
would ease the situation. Only a Stage 1 emergency, which calls for
voluntary energy conservation, was established from 4 to 10 p.m.

While much of the problem developed because generators had been
taken out of operation for maintenance, a spokeswoman for the
Independent System Operator, said it highlighted how strapped the
state had become for electricity.

"The growth in California and the demand for electricity has
really caught up with reality," said Lorie O'Donley, a public
information officer for the agency. "We're operating with a pretty
slim reserve most days."

California, which has been at the forefront of deregulation of the
electric industry, has come under scrutiny after electricity
supplies dropped to critical levels this past summer and electric
bills in San Diego more than doubled.

"In the summer we had some problems because of high demand with
air conditioners and the like," Ms. O'Donley said. "But we've
gotten to the point where the supply and demand equation is so
close we may be seeing more problems throughout the year."

The current shortage worsened when the amount of power expected to
be imported from the Northwest was cut by a third on Wednesday
because the power was needed in Washington and Oregon, which were
experiencing cold weather.

The move highlighted another growing problem, Ms. O'Donley said.


"Energy has become a regional issue," she said. "We really have for
many years counted on getting imports from the Pacific Northwest."

During the summer, those states provide electricity for
California, and the state returns the favor during winter. But
development of power supplies has lagged behind the rapid growth on
the West Coast, leaving utility companies scrambling to serve their
customers.

In addition to advisories about shortages, officials with the
Pacific Gas and Electric Company, which serves 13 million people in
Northern and Central California, urged consumers to conserve energy
during the current cold snap as natural gas prices are expected to
be about 50 percent higher this year.



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