Oregon daily emerald. (Eugene, Or.) 1920-2012, March 16, 2001, Page 9, Image 9

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    California copes
with energy crisis
By Jennifer Coleman
The Associated Press
SACRAMENTO, Calif. — The
Assembly took several steps
Thursday to cope with California’s
energy crisis, passing bills that
would regulate power plant out
ages and expand utility programs
that cut rates for big power users
who turn off electricity when
needed.
A measure by Assemblywoman
Carole Migden would give the
overseer of the state power grid au
thority to coordinate plant outages
to prevent too many from going of
fline for maintenance at any one
time.
If a power plant seemed to have
too many outages or was shut
down for a suspicious length of
time, the grid keeper, the Indepen
dent System Operator, could in
vestigate and the state Electricity
Oversight Board could order fines.
“We have suspected that in
some instances these generators
have shut down and this has not
been in the public interest,” said
Migden, D-San Francisco, adding
that she was not accusing anyone
of wrongdoing. “What we’re trying
to do is create an audit and ac
countability system.”
The bill largely puts into state
law an executive order issued last
month by Gov. Gray Davis and
goes further by giving the Electrici
ty Oversight Board the power to is
sue fines. The fines would be
based on the cost of power the ISO
had to buy as a result of a plant’s
shutdown.
Senate leader John Burton on
Wednesday announced a Senate
committee will investigate
whether electricity wholesalers il
legally withheld power to drive up
prices.
He cited plant outages for sched
uled and unscheduled mainte
nance that have contributed to the
state’s strapped power supply and
forced the ISO to scramble for
power at premium prices to fill
gaps in the grid.
Duke, Dynegy, Mirant and Re
liant will be among major
providers included in the Senate
inquiry, said Committee Chairman
Joe Dunn.
Jan Smutny-Jones, executive di
rector of the Independent Energy
Producers industry group, said
wholesalers will cooperate, but
warned that if it becomes a “witch
hunt’’ it could discourage them
from building plants in California.
A similar Assembly panel has
been formed to look into natural
gas prices. The probes could lead
to action by the state attorney gen
eral.
The Federal Regulatory Energy
Commission on Wednesday or
dered Williams Energy Marketing
& Trading and AES Southland to
show why they should not be
forced to refund S10.8 million to
California utilities for taking gener
ating units in Long Beach and
Huntington Beach offline last
April and May.
That follows a FERC order last
week directing wholesalers to give
back $69 million in overcharges
for California electricity. FERC, a
strong supporter of deregulation,
has given the companies until
March 23 to appeal that decision.
The Assembly approved
Migden’s plant outage bill 57-5
and sent it to the Senate.
The Assembly also sent the Sen
ate two measures on investor
owned utilities’ interruptible-serv
ice programs, which give
non-residential utility customers
discounted rates if they agree to
shut down during periods of tight
power supplies. Both votes were
67-0.
The programs are considered
key tools for avoiding rolling
blackouts this summer, when air
conditioning and other power use
is expected to further strap the
state’s electricity supply.
The Assembly approved a bill
by Assemblyman Rod Wright, D
Los Angeles, that would extend
the programs until the end of 2002
and require investor-owned utili
ties to offer customers more ways
to participate.
It also passed a measure by As
semblywoman Lynn Daucher, R
Brea, that would let those in such
programs for at least a year that
have been barred by the state Pub
lic Utilities Commission from get
ting out of them opt out without
penalty.
Southern California Edison and
Pacific Gas and Electric Co. cus
tomers found themselves shut
down frequently in January. Sever
al schools and businesses asked to
be let out of the programs, saying
they couldn’t function due to the
frequent outages.
The PUC on Thursday was ex
pected to discuss a new plan for
interruptible-service programs.
Meanwhile, federal regulators
said they will make several
changes in oversight to expand the
West’s power supply.
The state has been struggling
with a tight electricity supply
since summer due in part to high
natural gas prices and power plant
outages for scheduled and un
planned maintenance.
California remained free from
power alerts Thursday morning,
with reserves above 7 percent.
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