Financial Times

Millions of Americans 'face power cuts'
By Christopher Parkes in Los Angeles
Published: May 15 2001 21:11GMT | Last Updated: May 16 2001 02:06GMT

Business, traffic and the daily routines of millions of Americans across the country could be disrupted by rolling blackouts this summer, according to the latest assessment of US electricity supply and demand.

California, already struggling for a year, will be worst hit, and may face up to 15 hours of power cuts a week. But New York City, New England and even energy-rich Texas are also teetering on the brink.

The estimates, from the North American Electric Reliability Council, take into account the effects of conservation efforts and rising rates on demand, plus the opening of power stations, and suggest California could still be up to 5,500MW short at peak periods. That is enough to power more than 5m homes.

Predicting a future even darker than the most pessimistic assessments from Californian authorities, the council - which represents industry, federal and state grid managers - said on Tuesday that the state could expect 260 hours of cuts over the summer peak.

In the other states and cities at risk it said the outcome depended on whether there were unexpected problems with generating plants or transmission lines, suggesting a precarious balance between supply and demand.

The council's annual assessment was released as Californian authorities met to decide by how much consumer rates would have to rise and who should pay most. The meeting of the public utilities commission was postponed from Monday after a wave of protests over its plans for business and industry - the heaviest consumers - to bear most of the burden.

While business organisations warned of the effects on investment in the state, academics and politicians said that sparing residential customers the worst of the increases would be counter-productive and discourage conservation at home.

The reliability council's estimates suggest voluntary conservation and reductions in demand due to higher prices will cut consumption by 3,250MW, but that will not be enough to compensate for the loss of supplies from the Pacific north- west.

Drought in the region has left hydro-electric reservoirs as much as 50 per cent lower than usual. While Oregon and Washington should have enough electricity for their own needs, there will not be enough to supply the volume usually exported to California in summer to keep the air conditioners whir- ring.

The increased risk of large-scale disruption has generated a series of demands for exemption from blackouts. The state's water authorities warned yesterday of threats to public health from sewage spills and water pipeline breaks if power was cut to its pumping systems.

So far exemptions have been granted to fire-fighting services, telecommunications and the power production and transmission sector.

-- Anonymous, May 16, 2001

Answers

"The state's water authorities warned yesterday of threats to public health from sewage spills and water pipeline breaks if power was cut to its pumping systems."

Sheesh, if it's that important, why isn't a generator in place??

-- Anonymous, May 16, 2001

Why don't they use the generators that they bought for Y2K? Oh, right, they didn't......

-- Anonymous, May 16, 2001

White House Says Energy Plan to Help in Short Term May 16, 2001 10:37 am EST

WASHINGTON (Reuters) - President Bush's energy proposal should have a quick impact on gasoline prices, a White House spokesman said on Wednesday. Spokesman Ari Fleischer said Bush's proposal to increase supply -- by boosting oil production and increasing refinery capacity -- "will create downward pressure on prices, which will be felt at the pump and throughout the economy."

The White House had said previously that there was little to be done in the short term about gasoline prices that have hit record highs and are expected to go still higher during the coming vacation season.

Fleischer said in fact there will be short-term relief because Bush's proposals, to be rolled out on Thursday, will have a ripple effect.

"Take a look at spot markets first of all. Spot markets react to presumptions about future supply. When spot markets start moving down it ripples throughout the energy industry, particularly the price of petroleum, that can help set prices down," he said.

-- Anonymous, May 16, 2001

Due to the extreme heat here in Iowa for the past few days (record highs - some places hit 100! !), some interruptible customers have been asked to shutdown - including some schools in Cedar Rapids, IA.

-- Anonymous, May 16, 2001