AW: Bill Richardson and California Electricity Problems.

[pmeyer@BHZ.ch]

Dear Radsafers

I am looking for a recent publications (preferably newspaper- or journal
articles) dealing with the consequences of the electricity deregulation in
the US, in particular for nuclear power  utilities.

I realize that this is not a true Radsafe issue, but since it came up in
this newsgroup...

Thanks in advance for any hints, 

Patrick.

Patrick Meyer
------------------------------------------------------------
Basler&Hofmann
Consulting Engineers
Forchstrasse 395
CH-8029 Zürich
Switzerland

email   pmeyer@bhz.ch
phone	01-387 11 22
direct	01-387 13 63
fax	01-387 11 00

homepage http://www.bhz.ch



> ----------
> Von: 	Sewell, Linda
> Antwort an: 	radsafe@romulus.ehs.uiuc.edu
> Gesendet: 	Donnerstag, 14. Dezember 2000 17:55 Uhr
> An: 	Multiple recipients of list
> Betreff: 	RE: Bill Richardson and California Electricity Problems.
> 
> Hi All,
> 
> I realize we are getting a bit off topic, but I thought I'd put my two
> cents
> worth in here.  I work for Pacific Gas and Electric at Diablo Canyon Power
> Plant.  The magnitude of the problem, for PG&E at least, isn't really
> spelled out in Richardson's remarks.  PG&E has borrowed over 4 BILLION
> dollars in the past few months to enable us to provide power to our
> customers.  We are borrowing at the rate of approximately 1 MILLION
> dollars
> per day right now.  As part of deregulation, both SCE and PG&E were
> required
> to sell at least 50% of our generating capacity.  For PG&E, we sold
> everything except Diablo Canyon....there are some hydro exceptions there,
> but that gets complicated.  Therefore, we must buy electricity for our
> customers.  As part of the settlements to deal with stranded costs (I
> don't
> want to get into that argument) we have a fixed price reimbursement rate
> that extends through 2001.  We are getting paid about 4 cents/KWhr, but we
> are buying power at rates as high at 60 - 70 cents/KWhr.  The math doesn't
> work here at all, at least not for PG&E.  Based on information we are
> receiving, our biggest immediate concern is that we are getting close to
> our
> credit limit, so to speak.  When and if we can't borrow any more money to
> buy power, I assume there will be sort of state or federal intervention.
> There are already ballot propositions being proposed by various consumer
> groups to essentially dismantle the deregulation process, so I'm sure
> we'll
> be debating this stuff in the courts and legislatures for years to come.
> 
> One thing of concern to me regarding this great experiment (in addition to
> the health of my employer, PG&E) is if we were truly in a deregulated
> market
> as forecast for 2002, 60 cents/KWhr is an awful lot of money for the
> consumer to pay for electricity.  With my very limited understanding of
> all
> this, one key part of fixing this "broken" system and still transitioning
> to
> a fully deregulated market, is more generation...and that won't happen in
> two years.  It's sad during times like this to think about Rancho Seco
> with
> it's 800 MWatts of fully functional electricity in a partially dismantled
> condition.  We sure like our power here in California, we just don't want
> it
> generated in our backyards.
> 
> I am now stepping off my soapbox and returning to Dosimetry duties.  
> 
> Needless to say, my employer hasn't reviewed any of this stuff....and all
> the usual disclaimers apply.   
> 
> Happy Holidays everyone!!
> 
> Linda
> 
> Linda M. Sewell, CHP
> Diablo Canyon Power Plant
> MS 119/1/122
> PO Box 56
> Avila Beach,  CA  93424
> 805.545.4315 (voice)
> 805.545.2618 (fax)
> mailto:lms1@pge.com
> 
>   
> 
> -----Original Message-----
> From: glen.vickers@exeloncorp.com [mailto:glen.vickers@exeloncorp.com]
> Sent: Thursday, December 14, 2000 6:46 AM
> To: Multiple recipients of list
> Subject: Bill Richardson and California Electriciy Problems.
> 
> 
> [Vickers, Glen]  Read the article behind my shallow comments...
> 
>  
> > Energy Secretary Richardson is causing others to subsidize energy prices
> > in 
> > California, when the rest of the country must pay their fair share.  The
> 
> > utilities in the region got the short end of the deal when they were
> > limited 
> > to what they could charge the customer, but were denied the ability to 
> > recover costs due to increases in wholesale prices.  
> > 
> > Is California the only state in which such ridiculous utility
> legislation
> > be 
> > passed?  
> > 
> > Should state legislated stupidity on such a grand scale be a good case
> for
> > 
> > the federal courts?
> > 
> > Will they meltdown the Northwest transmission lines like they did
> before?
> > 
> > Where was the guiding wisdom of the Clinton administration during the
> > dereg 
> > process?
> > 
> > There are enough problems in the world, it's just really disappointing
> > when 
> > the state of California thought long and hard and made a concious
> decision
> > to 
> > create a new one.  How many of us spend time at work fixing problems
> > created 
> > by others?
> > 
> > I really feel for those who work for the struggling utilities in
> > California.  
> > Hopefully they'll survive and I'm not just talking about their 4th qtr 
> > earnings projections.  
> > 
> > Glen Vickers
> > Nuclear Power HP
> > 
> > 
> > 
> [Vickers, Glen]  
> 
> > California Warns of Power Outages
> > 
> > By STEVE LAWRENCE
> > .c The Associated Press
> >   
> > SACRAMENTO, Calif. (AP) - Energy Secretary Bill Richardson ordered
> > Northwest 
> > power suppliers to sell electricity to power-strapped California
> utilities
> > 
> > Wednesday, a move that appeared to avert the immediate threat of rolling
> 
> > blackouts. 
> > 
> > The announcement came as state regulators warned rolling blackouts were 
> > imminent due to power shortages within the state and an inability to buy
> > more 
> > electricity from the Northwest. 
> > 
> > The warning came from the Independent System Operator, keeper of
> > California's 
> > power grid. It said that electricity supplies were so perilously low
> that
> > it 
> > might declare a Stage 3 power emergency for only the second time ever.
> At 
> > Stage 3, the grid can impose blackouts. 
> > 
> > Richardson said at a Washington, D.C., news conference he was using
> > emergency 
> > powers to force wholesalers to sell power to California at a price he
> > deemed 
> > fair. He said he would also request that two large Pacific Northwest
> power
> > 
> > generating associations send more power to California. 
> > 
> > ``Our objective is to keep the lights on in California through this
> > emergency 
> > situation,'' he said. ``We're dealing with a potentially very serious 
> > situation here.'' 
> > 
> > California has been caught in a power crunch over the past several days,
> > in 
> > part because of cold weather in the Northwest - where California buys
> much
> > of 
> > its power - and the shutdown of some generating plants for maintenance. 
> > 
> > Stephanie McCorkle, an ISO spokeswoman, said the threat of blackouts was
> 
> > delayed at least two hours Wednesday afternoon after the Bonneville
> Power 
> > Administration diverted 1,500 megawatts to California. 
> > 
> > But she said there was no guarantee that flow of electricity would
> > continue 
> > past mid-afternoon ``because the power is needed up there in the
> > Northwest.'' 
> > 
> > ``We are literally on the phone hunting for megawatts,'' she said. 
> > 
> > California's two largest utilities, Pacific Gas and Electric and
> Southern 
> > California Edison, are near bankruptcy due to skyrocketing wholesale
> power
> > 
> > costs, Gov. Gray Davis and Sen. Dianne Feinstein, D-Calif., said at a 
> > Washington, D.C., news conference with Richardson. 
> > 
> > Davis and Feinstein asked federal regulators to set a regional price cap
> > on 
> > wholesale electricity to prevent the high prices that have plagued 
> > California. On Friday, the Federal Energy Regulatory Commission lifted
> > price 
> > caps in California. 
> > 
> > Record wholesale power prices followed, and PG&E warned it was in
> > financial 
> > danger. 
> > 
> > The problem became especially acute when about a dozen suppliers began 
> > demanding cash before selling power to California, Kellan Fluckiger, the
> 
> > ISO's chief operating officer, said Wednesday. 
> > 
> > ``The credit limits of utilities and what markets are willing to sell us
> > have 
> > been reached and surpassed in many cases,'' Fluckiger said. ``There are 
> > questions about utility solvency. That has come to a head today.'' 
> > 
> > He said officials may have to interrupt power to as many as 4 million 
> > customers Wednesday afternoon and early evening, when people come home
> > from 
> > work and power demand hits a peak. 
> > 
> > An unprecedented Stage 3 emergency was issued last Thursday, meaning
> > reserves 
> > had fallen below 1.5 percent. But the state fended off rolling outages
> by 
> > turning off two power-sucking water pumps. 
> > 
> > This time, Fluckiger said any blackouts would probably last about an
> hour
> > to 
> > 90 minutes and occur mostly in Northern California. 
> > 
> > ``It's a fairly bleak picture,'' he said. ``This thing will not change
> > unless 
> > something is done to alleviate the credit situation.'' 
> > 
> > A Stage 2 alert was declared Wednesday afternoon, meaning power reserves
> > fell 
> > below 5 percent and large commercial customers could be asked to reduce
> > power 
> > consumption. A Stage 1 alert was declared Wednesday morning, meaning
> power
> > 
> > reserves were below 7 percent and all power users are asked to conserve.
> 
> > 
> > Stage 1 and Stage 2 emergencies have become routine this month, but last
> 
> > Thursday's Stage 3 was the only time the threat of blackouts loomed. 
> > 
> > Contributing to the problem is a shortage of water to power
> hydroelectric 
> > generators in the Northwest and California, Fluckiger said. 
> > 
> > ``We have reservoirs so low that we have people standing by them
> watching
> > the 
> > situation to make sure it does not go below safe limits,'' he said. 
> > 
> > The power crunch over the past few months has been blamed in part on 
> > electricity deregulation. California approved a phased-in deregulation
> of
> > the 
> > electricity market in 1996 to try to lower prices for consumers through 
> > competition, but so far it has led to higher energy prices. 
> > 
> > At the same time, wholesale power costs have been soaring, in large part
> 
> > because of skyrocketing prices for natural gas. Wall Street is worried
> > about 
> > utilities' financial health, and on Tuesday, a consumer group urged the
> > state 
> > to seize and run the strapped $20 billion electricity system. 
> > 
> > AP-NY-12-13-00 1906EST
> > 
> > Copyright 2000 The Associated Press. The information contained in the AP
> > news 
> > report may not be published, broadcast, rewritten or otherwise
> distributed
> > 
> > without the prior written authority of The Associated Press.  All active
> 
> > hyperlinks have been inserted by AOL. 
> 
> 
> **************************************************************************
> **
> *****
> This E-mail and any of its attachments may contain Exelon Corp.
> proprietary
> information, which is privileged, confidential, or subject to copyright 
> belonging to the  Exelon Corp. family of Companies.  This E-mail is
> intended
> solely for the use of the individual or entity to which it is addressed.
> If
> you are not the intended recipient of this E-mail, you are hereby notified
> that any dissemination, distribution, copying, or action taken in relation
> to the contents of and attachments to this E-mail is strictly prohibited
> and may be unlawful.  If you have received this E-mail in error, please
> notify the sender immediately and permanently delete the original and
> any copy of this E-mail and any printout.  Thank You.
> **************************************************************************
> **
> *****
> ************************************************************************
> The RADSAFE Frequently Asked Questions list, archives and subscription
> information can be accessed at http://www.ehs.uiuc.edu/~rad/radsafe.html
> ************************************************************************
> The RADSAFE Frequently Asked Questions list, archives and subscription
> information can be accessed at http://www.ehs.uiuc.edu/~rad/radsafe.html
> 
************************************************************************
The RADSAFE Frequently Asked Questions list, archives and subscription
information can be accessed at http://www.ehs.uiuc.edu/~rad/radsafe.html