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North American Network Operators Group Date Prev | Date Next | Date Index | Thread Index | Author Index | Historical RE: California regulators ordered rolling blackouts
If you've every worked for a telco, you'd know all about "affiliate transaction" and how PG&E can't touch that debt with anything other than cash, from the other bucket. The CA PUC would squash them like a bug. The real problem is CalISO management. > -----Original Message----- > From: [email protected] [mailto:[email protected]] > Sent: Wednesday, January 17, 2001 3:12 PM > To: [email protected] > Cc: [email protected]; [email protected] > Subject: Re: California regulators ordered rolling blackouts > > > > http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/arch > ive/2001/01/16/MN184364.DTL > > describes one of the more interesting side notes in all of > this, how PG & E's > corporate restructuring allows them to retain profits. Among > the many comical > notes is that about half of the debt PG & E owes is to itself. > > regards, > Ted Hardie > > > > > > > > Even third world countries aren't as idiotic as California. > There when > > electricity goes off, it usually is because there is none > to be had. In our > > situation, it is manipulation and poor planning to the extreme. > > > > My power was out for at least one hour, it is back now. > > > > Bora > > > > ----- Original Message ----- > > From: "Rusty H. Hodge" <[email protected]> > > To: <[email protected]> > > Sent: Wednesday, January 17, 2001 1:37 PM > > Subject: California regulators ordered rolling blackouts > > > > > > > > > > It has begun. Welcome to the 3rd world. > > > > > > > > > http://www.sfgate.com/cgi-bin/article.cgi?file=/news/archive/2 > 001/01/17/stat > > e1503EST0161.DTL > > > > > > Blackouts hit California as utility financial woes deepen > > > > > > Associated Press, SF Gate Wednesday, January 17, 2001 > > > Breaking News Sections > > > > > > > -------------------------------------------------------------- > ---------- > > > > > > California regulators ordered rolling blackouts Wednesday for the > > > first time in the state's months-long electricity crisis, blaming > > > utility credit problems and a tight national power supply for the > > > scattered outages. > > > > > > The rotating blackouts, expected to affect about 500,000 customers > > > for an hour to 90 minutes, were restricted to Pacific Gas and > > > Electric Co. territory in northern and part of central California, > > > said Stephanie McCorkle, a spokeswoman for the Independent System > > > operator, keeper of the state's power grid. > > > > > > A PG&E spokesman said that about 250,000 people were > already without > > > power from the blackouts that began at 11:41 a.m. There > are reports > > > of outages in San Francisco's Lower Haight, Oakland's > Rockridge area, > > > the Oakland Hills, Orinda, the Peninsula from South San > Francisco to > > > San Mateo, parts of Napa and Sonoma County, downtown San Jose, > > > Cupertino's De Anza College, San Ramon, Santa Cruz, > Benicia and other > > > areas, according to radio and TV reports. > > > > > > There was a report of two students being trapped in an elevator at > > > Hastings School of Law in San Francisco. Some ATMs were > reported out > > > of service in downtown San Francisco. > > > > > > Power was cut to the Cow Palace in Daly City, which is > holding a boat > > > show, according to an administrative worker at the > exhibition hall. > > > The main building remains well-lit from emergency lighting and > > > skylights, she said. > > > > > > KICU-TV, channel 36, was knocked off the air. > > > > > > The blackouts would first affect customers in scattered > areas known > > > as blocks 3 and 4. For security reasons, the precise locations are > > > not released. Consumers can find their block numbers at > the bottom of > > > their power bills. > > > > > > PG&E and state officials urged conservation and said it > was not known > > > yet if blackouts would be ordered for blocks 5, 6 and 7. > Blocks 1 and > > > 2 had power outages last June. > > > > > > BART, fire departments, police stations and hospitals are not > > > affected. Motorists who come to non-functioning traffic signals, > > > including El Camino Real in the San Bruno/San Mateo area > and Lawrence > > > Expressway in San Jose, should treat them as four-way stops. > > > > > > Utilities try to avoid cutting power to blocks with essential > > > services such as hospitals. > > > > > > Terry Winter, president of Cal-ISO, said that a large > power plant on > > > California's Central Coast went down at about 11 a.m., > necessitating > > > the outages. > > > > > > Worry that the state's two largest utilities were on the verge of > > > bankruptcy led some suppliers to withhold power from California, > > > despite an emergency federal order requiring them to sell excess > > > electricity to the state, said Jim Detmers, the ISO's managing > > > director of operations. > > > > > > But Winter said later that he did not believe generators were > > > withholding power. Instead, he said, the main problem is > broken power > > > generating facilities, many of them older plants that > have been run > > > heavily since June. > > > > > > Compounding the problem is a general scarcity of electricity > > > nationally, and a lack of snow and rain in the > > > hydroelectric-dependent Pacific Northwest, Detmers said. > > > > > > ``If you are out in the community and get into an > intersection that > > > is in the blackout, use caution,'' he said. > > > > > > The day began with the third Stage 3 power alert within a week, > > > meaning reserves were close to just 1.5 percent. The > warning marked > > > at least the third time California neared blackouts since > its power > > > woes began last summer. > > > > > > The ISO fended off outages before by temporarily turning off huge > > > state pumps that move water from Northern California to the south, > > > sucking enough power for 600,000 homes, but that wasn't enough > > > Thursday. > > > > > > Suppliers were ``reluctant to provide power to California > because of > > > the financial situation of the utilities,'' Detmers said. > > > > > > He said the ISO wasn't probing whether suppliers were flat-out > > > ignoring Energy Secretary Bill Richardson's emergency > order insisting > > > that any spare power go to California, however. > > > > > > ``We're just trying to get the power delivered,'' he said. > > > > > > Adding to the problems, several power plants that were expected to > > > return to full operation after repairs did not, Detmers said. > > > > > > On Tuesday, Southern California Edison declared itself > unable to pay > > > hundreds of millions in wholesale electricity bills, and > it and PG&E, > > > the state's largest utilities, took another hit on Wall Street. > > > > > > SoCal Edison, which serves 11 million people, said it > cannot pay $596 > > > million in bills for wholesale energy and debt service, including > > > $215 million to the California Power Exchange. > > > > > > The Power Exchange was considering whether to make the utility buy > > > its power elsewhere and an electricity supplier > threatened to force > > > SoCal Edison into bankruptcy if it failed to pay its bills. > > > > > > The default prompted Standard & Poor's and Moody's to > downgrade the > > > credit ratings of SoCal Edison and PG&E to junk-bond status. > > > > > > The credit agency said SoCal Edison's delinquency also > tainted PG&E. > > > With just $500 million in cash left as of Jan. 10, PG&E faces due > > > dates on bills totaling $1 billion during the first two weeks of > > > February. > > > > > > Between them, PG&E and SoCal Edison have lost at least > $10 billion in > > > wholesale energy costs. A rate freeze imposed as the > state phases in > > > deregulation has blocked them from passing on higher > wholesale costs > > > to their customers. > > > > > > Wholesale power prices have risen dramatically since > June, in part of > > > because of a hot summer and a cold winter. In 1999, they averaged > > > perhaps 3.5 cents a kilowatt. Now, they are running about > 30 cents, > > > and sometimes far higher. > > > > > > Demand has remained high, supplies are strapped because > no new power > > > plants have been built in the state in recent years and > imports are > > > tight because other states are fighting over the power. > > > > > > In addition, spiraling prices for natural gas are forcing power > > > plants to raise their prices. Most power plants are fired > by natural > > > gas. > > > > > > On Tuesday, unusually high demand for natural gas, due in part to > > > cold weather, led San Diego Gas and Electric to cut > supplies to two > > > power plants, contributing to the state's Stage 3 alert. > > > > > > The utility said there was plenty of natural gas, but not enough > > > space in the pipeline to meet its customers' needs. To > maintain the > > > supply for its home and small-business users, the utility cut the > > > flow to the two power plants and six large industrial customers. > > > > > > The state avoided rolling blackouts after huge state > pumps that move > > > water from Northern California to the south were turned off > > > temporarily, conserving enough electricity to power 600,000 homes, > > > said Kellan Fluckiger, the ISO's chief operating officer. > > > > > > Joel Nelsen, president of California Citrus Mutual, spent > Tuesday on > > > the phone with Central Valley lawmakers and the governor's office > > > trying to ensure that orange growers wouldn't face outages as they > > > tried to protect crops from a cold snap. > > > > > > ``We're terribly exposed,'' said Nelsen, who heads a trade > > > association of 800 growers. ``The loss of power for a short time > > > could wreak untold damage on our crop.'' > > > > > > > > >
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