Electricity

Drought has Far Reaching Effects, Price of Power Skyrocketing
Weather.com, July 21, 2000

The scorching, dry weather has had such a stronghold, lakes and rivers are at record lows. That means the reservoirs used to generate hydroelectric power can not supply the energy demanded. As a result, utility companies are struggling to pay for the unanticipated drought-related reliance on power plants fueled by natural gas. "Basically, because of the drought and the lakes being so much lower, we are unable to use our hydro plants as much as we'd like. So we've had to look for other sources, such as natural gas," said Laura Gillig, a spokeswoman for Georgia Power. Low water levels in Georgia have results in a 30 percent reduction in output at 16 of the state's hydroelectric plants. Turning to natural gas isn't a cheap alternative, as rates have been substantially high for the past six months. To cope with the $98.8 million in unexpected costs, Georgia Power will be billing customers about $2.70 more each month starting in August. Of course, the demand for power has also soared along with the temperatures. Georgia Power spokesman Tal Wright said the part of the rate increase results from those who have cranked up the air conditioning.

Paying $2.70 more a month doesn't seem so bad to those living in California, Washington, Oregon and Montana. The price of electricity in the west has climbed to 40 times their normal levels in just a matter of weeks. The spike has been so extreme, some businesses have shut down. When the normal $35 a megawatt for electricity jumped suddenly to $625 a megawatt, the Deep Copper Pit closed its doors. Across the west, a growing number of companies in energy-intensive industries like aluminum, paper and mining are being forced to lay off workers. In sunny California, the summer scorcher has pushed power prices to the state limit, threatening bigger bills for consumers. Yesterday's average price per kilowatt was more than 50 percent higher than what San Diego Gas & Electric Co. currently bills customers.

California Power Emergency Escalates
Reuters, September 18, 2000

California's grid operator ordered a Stage 2 power emergency today as the state's latest electricity crisis worsened as sizzling hot weather continued to drive up demand for cooling power. It was the 17th time since May that the Independent System Operator (ISO), which manages most of the state's power grid, ordered a Stage 2. As electricity reserves fell below 5 percent of demand on the system, the ISO directed the state's investor-owned utilities to interrupt the flow of power to industrial customers who pay reduced rates in return for being turned off in emergencies. An ISO spokesman said they were seeking to reduce the load on the system by about 1,800 megawatts (MW) to avoid triggering a Stage 3 alert. Stage 3, the final step in the emergency plan, comes when reserves fall below 1.5 percent, at which point the ISO orders utilities to implement "rotating" blackouts of entire neighborhoods for 1 to 2 hours in order to protect high voltage electrical gear and prevent the collapse of the entire grid. Exacerbating the situation, several unspecified California power plants were reported shut for maintenance and repairs after running hard all summer to keep pace with the booming demand for electricity from the state's 34 million residents. At the same time, the seasonal late-summer drop in water levels on Pacific Northwest rivers, usually a major source of hydroelectricity for the California market, also cut into available supplies from out of state. Relief does not appear to be coming any time soon.