-----Original Message-----
From: webmaster@cera.com [mailto:webmaster@cera.com]
Sent: Thursday, August 30, 2001 3:17 PM
To: clients@cera.com
Subject: Western Energy Markets: New Power Plants Soothe the Market -
CERA Monthly Briefing 



Title: The Supply Response 	
URL(s):	

http://www20.cera.com/eprofile?u=35&m=2641;


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WESTERN ENERGY MARKETS: NEW POWER PLANTS SOOTHE THE MARKET

Roughly 5,000 MW of new generating capacity in 2001 has helped dampen price 
pressures and stem reliability concerns in California and the West. New plant 
plus significantly reduced summer demand through conservation has put the 
West's capacity margin at 15 percent, but regional balances vary widely. Power 
demand declines have also completely relieved the West Coast gas supply 
shortfall. Despite low hydroelectric output, gas demand for power generation in 
the West is actually down from last year.

*  Energy conservation in response to the retail price increase, cool weather, 
and the slowing economy is the strongest fundamental driver in California. 

*  New power supplies have arrived, but grid operators cannot count on full 
nameplate capacity within the first few months of a new plant's start date.

*  Pacific Northwest hydroelectric resources remain critically low despite low 
demand, raising the specter of reliability problems this winter.

**end**

Follow above URL for complete Monthly Briefing (9 printed pages).





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


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