Energy Issues

Please see the following articles:

Sac Bee, Thurs, 5/31: A rush to duck power outages: About half of the
state's electric users already have been exempted from rolling blackouts

SD Union, Thurs, 5/31: Sempra chief: County may fare OK on outages

SD Union, Thurs, 5/31: 'Plan B' gains key support in Assembly

SD Union, Thurs, 5/31: FERC boss unfazed by Davis' lawsuit threat

SD Union, Thurs, 5/31: Chula Vista names itself a municipal power entity

SD Union (AP), Thurs, 5/31: Circuit breaker=20
Giddy investors in the power trade get their wires crossed

SD Union (AP), Thurs, 5/31: After months of pressure, mayor agrees on power=
=20
plant=20

SD Union, Wed, 5/30: Panel OKs weakened utility district bill

SD Union, Wed, 5/30: Davis fails to sway Bush on price caps

SD Union, Wed, 5/30: Head of FERC confident California suit will fail

SD Union (AP), Wed, 5/30: Grid managers call Stage 2 alert, but hope to avo=
id=20
blackouts=20

LA Times, Thurs, 5/31: FERC Chief Unfazed By Threat of Third Lawsuit

LA Times, Thurs, 5/31: The Home Energy Drain

SF Chron, Thurs, 5/31: Heat's on, but so are lights=20
100-degree temperatures aren't widespread, sparing the grid

SF Chron, Thurs, 5/31: Municipal utilities warned=20
Governor says he'll seize excess electricity if prices don't come down

SF Chron, Thurs, 5/31: Regulators want state trade-off for caps=20
Davis asked to give up control of power lines

SF Chron, Thurs, 5/31: Plan would have biggest customers pay Edison's debt

Mercury News, Thurs, 5/31: San Jose mayor changes course, endorses power=
=20
plant

Mercury News, Thurs, 5/31: State admits power-deal secrecy=20

Mercury News, Thurs, 5/31: California Gov. Davis blasts Bush energy policy=
=20

Mercury News, Thurs, 5/31: Mayor sees the light on power plant (Editorial)=
=20

OC Register, Thurs, 5/31: Building a new plant? More power to them

OC Register, Thurs, 5/31: Watering down fun
Many summer activities in O.C. will be diminished by the electricity crunch

OC Register, Thurs, 5/31: Energy notebook
San Jose mayor switches position, backs power plant

OC Register, Thurs, 5/31: Deadline near on regional power grid=20

OC Register, Thurs, 5/31: Bush standing tall as Davis plays blame game =
=20
(Commentary)

Individual.com (Businesswire), Thurs, 5/31: Electrical Emergency Stepped Up=
=20
to Stage Two;=20
Need for Energy Conservation is Critical =20

Individual.com (AP), Thurs, 5/31: Washington's Role Helped Spark=20
California's Power Crunch

Individual.com (Businesswire), Thurs, 5/31: Energy Experts Say Solution to=
=20
California Crisis is
Inescapable/ Build More Power Plants and Ensure Competition

NY Times, Thurs, 5/31: In California, Blackouts Spur A Search for Home=20
Remedies

---------------------------------------------------------------------------=
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-------------------------------------

A rush to duck power outages: About half of the state's electric users=20
already have been exempted from rolling blackouts.
By Carrie Peyton, Terri Hardy and Clint Swett
Bee Staff Writers
(Published May 31, 2001)=20
Up and down California, businesses, government agencies, campuses and other=
s=20
are scrambling to join the millions who will escape this summer's predicted=
=20
waves of rolling blackouts.=20
Some have gotten state regulators to change blackout rules. Some have given=
=20
different versions of their needs to utilities, changing their stories in=
=20
ways that satisfy exemption standards. Some have persuaded legislators to=
=20
propose laws just for them.=20
"People that have political power or economic power are going to find ways =
of=20
getting exempted. It happens all the time," said Richard Bilas, one of five=
=20
appointed members of the state Public Utilities Commission.=20
Every addition to the largely confidential list of those exempt from outage=
s=20
boosts the frequency of blackouts for everyone else.=20
While a few thousand institutions -- including hospitals, fire departments=
=20
and prisons -- are deemed "essential" users who should not be blacked out,=
=20
nearly half the state is spared outages because millions more share circuit=
s=20
with those exempt facilities.=20
In Sacramento, for example, the electric utility will not cut power to a=20
water treatment facility along the American River for fear of endangering=
=20
water quality. But sheltering that circuit also spares the sprawling=20
California State University, Sacramento, campus nearby.=20
If exemptions grow, "at some point, you lose the ability to reliably have=
=20
rolling blackouts," said PUC commissioner Carl Wood. He has estimated that=
=20
fewer than 1,000 more institutions can be exempted without compromising the=
=20
system that rolls outages from one part of the state to the next when the=
=20
electric grid can't supply power for everyone.=20
With close to half of the state sitting out outages, "that means the other=
=20
half is going to get blacked out twice as often. It's basically unfair to t=
he=20
rest of the community," said Paul Perkovic, who sits on the board of the=20
Montara Sanitary District, which provides sewer, garbage and other services=
=20
to a San Mateo County community.=20
Perkovic urged the PUC last week to make more government agencies, includin=
g=20
his tiny district, eligible for blackouts, arguing that they should be=20
prepared for other emergencies anyway.=20
The deluge of exemption requests has created a dilemma of values and number=
s.=20
Should nursing homes be placed on the essential list? What about outpatient=
=20
surgical clinics or transit agencies or schools? And when, if ever, should=
=20
someone review existing exemptions to see if they're still needed?=20
Utilities and regulators say they try to apply the rules fairly. But=20
inconsistencies appear, and the rules keep changing as the realization sink=
s=20
in that many more blackouts could await California.=20
The state's two biggest utilities are close in size, but one shields about =
25=20
percent more customers than the other from outages.=20
The Sacramento Municipal Utility District, which sets its own outage=20
standards, exempts only 21 of its 530,000 customers.=20
Pacific Gas and Electric Co., which applies rules set by the PUC, is much=
=20
more generous, giving 2,600 of its 4.8 million customers the "get out of=20
blackouts free card."=20
Southern California Edison is even more open handed in its interpretation o=
f=20
the same rules, doling out 3,600 exemptions among its 4.3 million customers=
.=20
The roads to getting an exemption are varied. There are at least three plac=
es=20
to start for those who want to stay cool and bright when all around are goi=
ng=20
dark.=20
Businesses or governments can apply to their utility, which determines=20
whether they fit rules for a public safety exemption.=20
Or if their utility is regulated by the PUC, they can apply directly to a n=
ew=20
program set up to examine their petition for exemptions.=20
Finally, they can go to the state Legislature, where lawmakers have=20
introduced a range of bills that would protect schools, nursing homes,=20
refineries -- even Universal Studios.=20
But in the attempt to quickly piece together a system to grant exemptions,=
=20
critics say, a haphazard process has been developed.=20
Dan Johnson, associate vice president for facilities development and=20
operations at San Jose State University, said he has sought an exemption fr=
om=20
PG&E and is still waiting, while campuses with similar circumstances have=
=20
succeeded. Now he wonders about the fairness of what seems to him a murky=
=20
decision-making process.=20
"Each utility has its own way of dealing with exemptions," he said. "If it=
=20
appears that the decision is arbitrary and capricious, we hope that when we=
=20
appeal to the PUC some sanity prevails."=20
One person in PG&E's tariff's department has done nothing but process=20
exemption requests since March, officials said, after the job became too bi=
g=20
to be absorbed in another worker's duties.=20
About 200 requests have come in since early this year, and PG&E has approve=
d=20
45 of them and denied 72, with 79 still pending.=20
The process is aimed at being a straightforward evaluation of whether an=20
entity fits into existing PUC categories of "essential" customers.=20
But it isn't always that simple, said Roland Risser, PG&E director of tarif=
fs=20
and compliance.=20
Sometimes, said Risser, a customer will say it has adequate backup=20
generation, and PG&E will let the customer know the backup disqualifies it=
=20
from an exemption. Later, the customer calls back and says "we've=20
re-evaluated" and the backup generator won't supply all its needs.=20
"We just take their word for it," Risser said. "We don't police."=20
From universities to transit agencies, a wide range of customers worry that=
=20
as different utilities apply PUC standards, those regulations don't always=
=20
yield the same results.=20
So far, at least eight campuses within the University of California and CSU=
=20
systems will not be subject to rolling blackouts, including UC Davis.=20
In a letter to PG&E asking for an exemption, UC Davis stressed the potentia=
l=20
danger to animals in its veterinary hospital and the possible destruction o=
f=20
research. But PG&E spokesman Ron Low said health and safety arguments are t=
he=20
only ones that matter. PG&E granted the exemption because the campus does n=
ot=20
have generators for its airport and its radio station -- which is part of t=
he=20
emergency broadcasting network.=20
Transportation officials say they're frustrated by the mixed signals sent b=
y=20
utilities.=20
While the PUC has declared the Bay Area Rapid Transit District exempt from=
=20
blackouts, Edison says Los Angeles' Municipal Transportation Authority is=
=20
not. Ralph de la Cruz, deputy executive director of operations for the MTA,=
=20
doesn't understand that logic. True, BART travels under the bay. But the=20
MTA's Green Line runs down the middle of the I-105 Century Freeway. Some MT=
A=20
rail lines are elevated, and passengers trying to extricate themselves from=
a=20
stalled train could plunge to the ground.=20
The MTA asked Edison to reconsider and has appealed to the PUC.=20
"We are anxious to see this resolved as quickly as possible, before blackou=
ts=20
occur," de la Cruz said. "My God, we don't want to be in the position of ou=
r=20
lines experiencing the prospect of stranded passengers."=20
The San Francisco Giants also have appealed to the PUC to be exempt during=
=20
games. A blackout at Pacific Bell Park would "pose major operational=20
challenges," said Staci Slaughter, a Giants' spokeswoman.=20
Electric turnstiles wouldn't work. Concession stands could only accept cash=
=20
only for hot dogs and beers. The field would go dark and night games would=
=20
have to be canceled.=20
The PUC has been so swamped with bids to escape blackouts that it has hired=
a=20
scientific and engineering consulting firm to study who else should be adde=
d.=20
Meanwhile, it has asked utilities to look into ways to reconfigure the wiri=
ng=20
so that each essential customer won't take so many nonessential ones out of=
=20
the blackout pool. A report on those efforts is due Friday.=20
"We've been deluged at the commission by individual requests that do have a=
=20
broader public policy good," said PUC president Loretta Lynch, including on=
e=20
from the lone U.S. maker of a blood-clotting agent for hemophiliacs.=20
The PUC has hired Exponent, a Menlo Park consulting firm, for $615,000 to=
=20
analyze who else should be exempt.=20
Exemption applications are due Friday and will be reviewed by people with=
=20
specialties ranging from toxicology to environmental sciences to electrical=
=20
engineering, said Robert Caligiuri, an Exponent vice president.=20
The company will rank applicants based on safety risks, and it will work wi=
th=20
utilities to determine the potential impacts of adding each one to the=20
exemption pool. It will report to the commission in July, and Wood expects =
a=20
decision in early August. He hopes the new rules can be implemented by=20
utilities soon after.=20
But no one within the PUC is taking an equally rigorous look at those who a=
re=20
already exempt, and the commission is split on whether such a study is=20
necessary. Wood, who specializes in the blackout issue, believes that the=
=20
commission simply doesn't have the time for such an effort during the curre=
nt=20
emergency.=20
Unsure of their prospects with utilities or the PUC, some are taking their=
=20
cases to the Capitol.=20
State Sen. Sheila Kuehl, D-Santa Monica, said lawmakers are scrambling to=
=20
draft energy policies that help all Californians, and at the same time, loo=
k=20
after interests in their districts.=20
One example is Kuehl's bill that would allow 15 businesses -- including=20
Universal Studios -- which straddle the boundary between Edison and the Los=
=20
Angeles Department of Water and Power to get their electricity from DWP. No=
t=20
only would that deal provide them with cheaper rates, but it would likely=
=20
exempt them from blackouts.=20
The Los Angeles city utility is not part of the region controlled by the=20
state Independent System Operator, and so it functions independently when t=
he=20
ISO orders utilities to impose blackouts.=20
Kuehl said the proposal is fair because those businesses were harmed by a=
=20
"geographic quirk," where parts of the park are in DWP territory but they a=
re=20
solely an Edison customer.=20
"These are already DWP customers," Kuehl said. "They should be able to draw=
=20
all their energy from DWP."=20
Other lawmakers are carrying bills for public schools, oil refineries and=
=20
customers in areas where there are extreme temperatures. Sen. Richard=20
Polanco, D-Los Angeles, is proposing a law that would ensure municipal=20
utilities -- such as his district's DWP -- don't have to participate in=20
blackouts.=20
Sen. Debra Bowen, D-Marina del Rey, chairwoman of the Senate energy=20
committee, said the state has to realize that not everyone can be exempt.=
=20
"All these bills that seek to put one group of folks in a better position=
=20
than someone else do is Balkanize the issue," Bowen said. "Unfortunately,=
=20
instead of having people come together to try and share the pain equally,=
=20
we're seeing folks rushing for their own lifeboat without regard for who ge=
ts=20
thrown overboard in the process."=20

The Bee's Carrie Peyton can be reached at (916) 321-1086 or=20
cpeyton@sacbee.com.=20

Sempra chief: County may fare OK on outages=20

By Kristen Green=20
UNION-TRIBUNE STAFF WRITER=20
May 31, 2001=20
San Diego County may be more insulated from blackouts this summer than the=
=20
rest of the state, the chief executive officer of Sempra Energy said=20
yesterday.=20
Stephen Baum said power supply shortages aren't as profound in Southern=20
California, in part, because the capabilities for importing energy are=20
better.=20
And that might mean Northern Californians will face more days in the dark=
=20
than San Diegans over the next three months, he said.=20

In a lecture at University of California San Diego yesterday, Baum, who=20
oversees San Diego Gas & Electric's parent company, said the state will=20
probably have at least 30 days of rolling blackouts this summer, an estimat=
e=20
often repeated by other energy experts.=20
But Baum hopes to limit San Diego County energy outages by introducing a=20
rolling blackout reduction program. Sempra is asking the state to support t=
he=20
program, which would give San Diego County credit for the energy that=20
businesses contribute to statewide energy supplies when electricity reserve=
s=20
drop dangerously low.=20
Local companies would turn on generators as the state nears blackouts, whic=
h=20
would make more energy available. In return, Sempra asks that the state=20
reduce the number of households that would be blacked out in San Diego=20
County. The state Public Utilities Commission has not considered the idea=
=20
yet.=20
State officials, however, have suggested that the program be applied=20
statewide. That would mean San Diego County businesses that run generators=
=20
would contribute to the state's energy supply, but the number of local=20
residents impacted by blackouts would not shrink.=20
During the afternoon lecture, attended by about 30 UCSD students and=20
visitors, Baum acknowledged the significance of President Bush's visit=20
Tuesday but said he disagrees with Bush's opposition to price caps.=20
And he expressed frustration that a resolution seems so far off.=20
"I see no leadership in this issue," he said.=20
The lecture was sponsored by the Irwin and Joan Jacobs School of Engineerin=
g,=20
the Graduate School of International Relations & Pacific Studies, and the=
=20
Center for Energy Research.=20

'Plan B' gains key support in Assembly=20

Lawmakers also want state costs on energy to be fully disclosed
By Ed Mendel?
UNION-TRIBUNE STAFF WRITER=20
May 31, 2001=20
CALIFORNIA'S POWER CRISIS=20

SACRAMENTO -- Assembly Democratic leaders have decided to back an alternati=
ve=20
to Gov. Gray Davis' plan to keep Southern California Edison out of bankrupt=
cy=20
that places less emphasis on state purchase of the Edison transmission=20
system.=20
The long-awaited "Plan B" from Assembly Speaker Robert Hertzberg, D-Van Nuy=
s,=20
is taking shape as legislative leaders are demanding that the governor reve=
al=20
detailed information about state power purchases, which total more than $7=
=20
billion.=20
"You can't come to a solution of this problem until you know exactly what t=
he=20
Department of Water Resources is spending," said Senate President Pro Tempo=
re=20
John Burton, D-San Francisco.=20
A Davis spokesman said the administration expects to begin complying with t=
he=20
legislators' request soon. But there is a question about whether standard=
=20
confidentiality clauses prevent release of long-term contracts and concern=
=20
that revealing daily purchases would result in higher prices.=20
"The governor philosophically wants to release them as soon as possible,"=
=20
said Steve Maviglio, Davis' press secretary. "We just want to make sure we=
=20
don't adversely affect our ability to get power at lower cost for the=20
summer."=20
Reserve power levels dropped yesterday, and the state power grid operator=
=20
declared a Stage 2 alert for the first time in three weeks. The Independent=
=20
System Operator said some power plants were off-line for maintenance and ho=
t=20
weather across the state increased demand. Fewer imports were available=20
yesterday in comparison to last week.=20
Another reason legislative leaders are pushing for a full disclosure of sta=
te=20
spending on power is to help the Legislature prepare a new state budget for=
=20
the fiscal year that begins July 1.=20
"There are many reasons that having very precise numbers in that regard are=
=20
important to Sen. Burton and the speaker," said Assemblyman Fred Keeley,=20
D-Boulder Creek, who has been active on the power issue in the Legislature.=
=20
Keeley said disclosure of power spending costs might encourage Republican=
=20
legislators to provide an urgency vote allowing the prompt sale of a bond o=
f=20
up to $13.4 billion to repay the state general fund for the power purchases=
.=20
Without an urgency vote the state cannot begin issuing the massive bond=20
before late August, nearly two months into the new fiscal year. The bond=20
would be paid off by ratepayers over 15 years.=20
In addition, said Keeley, detailed information about state spending might=
=20
also lead to an agreement on legislation sought by Republicans that would=
=20
allow "direct access" purchase of electricity, where businesses and other=
=20
consumers contract with generators and marketers.=20
The state began buying power for utility customers in January after a faile=
d=20
deregulation plan, which froze customer rates as power costs soared, result=
ed=20
in a combined $13 billion debt for Edison and Pacific Gas and Electric and=
=20
left them unable to borrow.=20
After PG&E went into bankruptcy in early April, Davis quickly completed a=
=20
memorandum of understanding to purchase the Edison transmission system for=
=20
$2.76 billion as part of a plan to keep Edison out of bankruptcy and able t=
o=20
resume buying power for its customers by the end of next year.=20
But Republican legislators immediately opposed the state purchase of the=20
transmission system. Democratic legislators think the plan is too generous=
=20
for Edison and are reluctant to approve what consumer groups have called a=
=20
"bailout" of the utility.=20
Burton said that before legislators can evaluate an alternative to the=20
governor's plan they need to know how much the state power purchasing agenc=
y,=20
the Department of Water Resources, is spending and how much money has been=
=20
committed for the future.=20
"Until we can find that out it's kind of tough to plan," Burton said.=20
Speaker Hertzberg has asked Keeley and senior Assembly staff members to=20
prepare the documents for an alternative to the governor's plan that=20
Hertzberg is expected to propose in a few days.=20
"The transmission purchase is not featured as prominently as it was in the=
=20
governor's proposal," Keeley said.=20
One of the options considered by the Assembly Democratic "Plan B" group was=
a=20
proposal by Assemblymen John Dutra of Fremont and Joe Nation of San Rafael=
=20
that would give the state the option of purchasing the Edison transmission=
=20
system for $1.2 billion within five years.=20
A key part of both the governor's plan and the Dutra-Nation proposal is=20
giving Edison part of the revenue from monthly utility bills, a "dedicated=
=20
rate component," that could be used to pay off Edison's debt and allow the=
=20
utility to resume buying power.=20
Both plans also would require Edison to make other concessions, including=
=20
providing low-cost power and the return of a $400 million tax refund that=
=20
Edison gave to its parent firm. Generators would be asked to forgive 30=20
percent of what they are owed.=20
Assembly Republicans said last week that what the state should receive in=
=20
exchange for aiding Edison is not the transmission system, but an agreement=
=20
that Edison would build new power plants to provide low-cost power.

FERC boss unfazed by Davis' lawsuit threat=20

Court has dismissed similar action already
By Toby Eckert=20
COPLEY NEWS SERVICE=20
May 31, 2001=20
WASHINGTON -- The head of the Federal Energy Regulatory Commission said=20
yesterday he is confident the agency would prevail in a legal battle with=
=20
California Gov. Gray Davis over electricity price controls.=20
"I feel good about our chances," said FERC Chairman Curtis Hebert, citing a=
=20
federal court's decision Tuesday to dismiss a similar lawsuit filed by=20
California legislative leaders.=20
Davis has threatened to sue the FERC for allegedly failing to meet its lega=
l=20
obligation to ensure that wholesale power costs are "just and reasonable."=
=20
Such a move would be the latest escalation in Davis' running battle with th=
e=20
agency over its response to California's power crisis.=20
"I think the 9th Circuit (federal appeals court) made very clear that the=
=20
commission is doing its job appropriately," Hebert told reporters.=20
A three-judge panel of the San Francisco-based court rejected a suit by=20
California Senate President Pro Tempore John Burton and Assembly Speaker=20
Robert Hertzberg that sought to force the FERC to impose wholesale price=20
controls. The court said the lawmakers "have not demonstrated that this cas=
e=20
warrants the intervention of this court."=20
Davis says his administration has laid a firmer legal foundation for a=20
lawsuit by first pursuing administrative remedies at the FERC. Several stat=
e=20
agencies made a flurry of filings with the commission last week, asking it =
to=20
crack down on wholesale prices that have increased tenfold over the past=20
year.=20
"The (legislative leaders') lawsuit was thrown out .?.?. because there wasn=
't=20
a preliminary filing with FERC asking for the relief that the plaintiffs we=
nt=20
into court to seek," Davis said Tuesday. "We have made such filings as=20
recently as Friday. .?.?. So we have to give them some time to review that=
=20
information."=20
But legal experts said the state may have a tough time building a successfu=
l=20
case against the FERC.=20
Federal statutes generally "give a great deal of discretion to agencies in=
=20
carrying out their duties," said Peter Shuck, an expert in regulatory polic=
y=20
at Yale Law School. "So it would be very hard for the state to prevail."=20
Hebert and fellow Commissioner Linda Breathitt have rejected the firm price=
=20
controls sought by Davis, overruling Commissioner William Massey, who favor=
s=20
them.=20
Hebert says the commission has taken steps to lower wholesale power prices =
in=20
California and punish price gouging. He cites $125 million in refunds=20
recently ordered by the agency and a "price mitigation" plan that went into=
=20
effect Tuesday.=20
The plan will use a complicated formula to set a price ceiling for power=20
sales during severe shortage periods. Generators breaching the limit will=
=20
have to justify their prices to the FERC or pay refunds.=20
Davis and other critics say the plan is riddled with loopholes and will bri=
ng=20
little relief to the state. They also say the refunds ordered by the FERC t=
o=20
date fall far short of the billions of dollars in overcharges the state has=
=20
endured.=20
Meanwhile, a spokesman for the California Independent System Operator, whic=
h=20
controls most of California's power grid, said the agency intends to meet a=
=20
Friday deadline for filing comments with the FERC on joining a regional gri=
d=20
management organization. The FERC has threatened to revoke the limited pric=
e=20
curbs if the ISO fails to present a plan for joining the organization.=20

Chula Vista names itself a municipal power entity=20

Move is latest effort to combat energy crisis
By Amy Oakes=20
UNION-TRIBUNE STAFF WRITER=20
May 31, 2001=20
CHULA VISTA -- The city has declared itself a municipal utility district as=
=20
one possible way to cope with the state's crippling energy crisis.=20
The declaration, approved by the City Council on Tuesday, is the city's fir=
st=20
step in examining the costs and benefits of owning and operating all or par=
t=20
of an energy generation and distribution system.=20
"It's a fairly simple act in a complex environment," Assistant City Attorne=
y=20
Glen Googins told the council.=20

The council also approved an energy conservation and strategy plan, which=
=20
outlines eight options for the city to review. The choices, range from=20
entering into a fixed-price contract with an energy service provider to=20
partnering with a third party, such as Duke Energy, to operate a power=20
generation facility.=20
The council also voiced concerns about a proposed 62.4 megawatt peak-use=20
plant to be built near Main Street. Ramco Inc., which wants to build an=20
enclosed gas turbine plant, held a site tour and information meeting Tuesda=
y=20
evening.=20
If approved by the California Energy Commission, the plant would be=20
operational by Sept. 30.=20
The city has scheduled its own informational public hearing for residents=
=20
from 6 to 8 p.m. Friday at the Otay Community Center, 1671 Albany Ave.=20
Several on the council said another plant could harm the air quality in the=
=20
city because the peak-use facilities primarily use natural gas.=20
The city is home to Duke's South Bay facility and has approved plans for a=
=20
49.5 megawatt peak-use plant near Main Street.=20
"We think another peaker plant is a little much," Councilwoman Patty Davis=
=20
said yesterday. "I think Chula Vista has done its job."=20
Davis said the council had not received any information about the Ramco=20
project. She said she learned about the proposal Tuesday before the council=
=20
meeting.=20
By naming itself a municipal utility district, the city can consider=20
establishing and operating public works for its residents, such as water=20
distribution. The decision does not commit the city to providing those=20
services.=20
The council on Tuesday also approved using $50,000 from its traffic signal=
=20
fund to install backup battery power supply packs and light emitting diodes=
=20
at 55 intersections. The battery packs will ensure that the traffic lights=
=20
will function if the area is subject to a rolling blackout.

Circuit breaker=20

Giddy investors in the power trade get their wires crossed
By Brad Foss=20
ASSOCIATED PRESS=20
May 31, 2001=20
NEW YORK -- Investors in power companies who were sipping champagne after=
=20
President Bush unveiled his national energy strategy got a bad case of the=
=20
hiccups when Democrats regained control of the Senate.=20
Shares of companies that trade power climbed higher in the days following t=
he=20
release of the Bush plan. They've been sliding since Sen. James Jeffords of=
=20
Vermont defected from the Republican Party, and Wall Street analysts say=20
perceptions about the fate of the Bush plan are definitely a factor.=20
"The energy bill was so favorable it almost seemed like (power companies) g=
ot=20
everything they would have asked for," said Barry Abramson, utility analyst=
=20
at UBS Warburg. "Now it looks like everything is going to be more difficult=
=20
to achieve, but not impossible."=20
The Bush plan seeks to give oil and gas drillers easier access to public=20
lands, to speed up the review process for refinery and power plant expansio=
ns=20
and spur renewed interest in nuclear power.=20
Shares of Calpine, Dynegy, Mirant and San Diego-based Sempra Energy, climbe=
d=20
between May 16 and May 21 -- the time between the release of the Bush plan=
=20
and reports of a Senate shake-up.=20
These stocks began to descend May 23, when Sen. Jeffords announced he was=
=20
leaving the GOP, and have continued downward, with Calpine and Dynegy losin=
g=20
13 percent, Mirant off 17 percent and Sempra Energy down more than 4 percen=
t.=20
Still, analysts say investors might be overreacting.=20
"Despite the fanfare following the unveiling of President Bush's energy pla=
n,=20
we believed its chances of passage -- even with a Republican majority -- wa=
s=20
slim at best," said Daniel Ford, head of a team of energy analysts at Lehma=
n=20
Brothers. "With Jeffords' move, the effort may be even more remote, but the=
=20
most likely outcome, inaction, has not changed."=20
Ford acknowledged that talk of capping wholesale electricity prices for=20
California has resurfaced in the Senate, though he dismissed the likelihood=
=20
of this happening -- even with a Democratic majority -- because "Bush still=
=20
has veto power and, to date, has been steadfastly against caps."=20
Democrats no doubt will emphasize conservation more than Republicans would=
=20
have, but the momentum shift in the Senate will not be overly dramatic,=20
according to Bill Breier, vice president of the Edison Electric Institute, =
a=20
Washington-based group that represents utilities.=20
But other experts note how quickly political positions could shift if Weste=
rn=20
power markets suffer the kind of meltdown San Diego experienced last summer=
.=20
During that crisis, power bills quickly tripled, costs were passed directly=
=20
to electricity consumers and even the most conservative local Republican=20
leaders called for an end to the open market and a cap on wholesale=20
electricity prices.=20
There still will be fierce battles over efforts to relax power plant=20
emissions -- a Bush proposal that would benefit coal burners -- and proposa=
ls=20
to expand the nation's electricity and natural gas infrastructure.=20
"There's going to have to be consensus and we've known that from the get-go=
,"=20
Breier said.=20
Analysts emphasized that it would be wrong to assume that much of the Bush=
=20
energy plan is now dead-on-arrival with Democrats in control of the Senate.=
=20
For instance, attention has been given to the fact that Sen. Jeff Bingaman,=
a=20
Democrat from New Mexico, will take over as chairman of the Senate Energy a=
nd=20
Natural Resources Committee, replacing Sen. Frank Murkowski of Alaska.=20
Bingaman, however, supports legislation critical to the nuclear power=20
industry, including the Price Anderson Act, a 1957 law set to expire in 200=
2=20
that limits corporate liability from a nuclear accident.=20
Other energy strategies favored by Bush, such as the deregulation of=20
electricity markets and the construction of 1,300 power plants over the nex=
t=20
20 years, will not be affected by the Senate overhaul simply because their=
=20
implementation is heavily dependent on state government, not federal, said=
=20
Ray Niles, who analyzes the power and natural gas industries for Salomon=20
Smith Barney.=20
"I don't think it makes a huge amount of difference," Niles said. "Things=
=20
like increasing drilling were going to be a hard haul for the country=20
anyway."=20
Staff writer Craig D. Rose contributed to this report.=20

After months of pressure, mayor agrees on power plant=20

By Brian Bergstein
ASSOCIATED PRESS=20
May 31, 2001=20
SAN JOSE =01) After months of pressure, Mayor Ron Gonzales has dropped his=
=20
opposition to a proposed large power plant in southern San Jose.=20
In a crowded news conference in his office Wednesday, Gonzales announced hi=
s=20
staff had negotiated important concessions from the companies that want to=
=20
build the $400 million Metcalf Energy Center =01) Calpine Corp. and Bechtel=
=20
Enterprises Inc.=20
The companies agreed to donate $6.5 million to community programs, offer=20
long-term power contracts at below-market rates to San Jose businesses and=
=20
take extra steps to keep the plant's pollution levels down.=20
"We came to the conclusion this power plant was on its way to San Jose, and=
=20
we needed to do everything we could to use our leverage to make this the be=
st=20
facility we could," Gonzales said. "We worked hard to make this plant bette=
r=20
for the people of San Jose."=20
Gonzales and the entire City Council in November voted against the=20
600-megawatt Metcalf plant on the grounds it would be too close to=20
residential areas.=20
But as California's energy crisis deepened, Gonzales' position became=20
increasingly unpopular. Gov. Gray Davis, state representatives, county=20
supervisors and the Sierra Club called for the plant to be built.=20
The decision on whether the plant will be built now rests with the Californ=
ia=20
Energy Commission, which did not return a call for comment Wednesday. The=
=20
agency, which is expected to vote this summer, could have approved the plan=
t=20
even without Gonzales' support.=20
But Gonzales said the city still "could have made it difficult" by refusing=
=20
to extend San Jose's recycled water line to the plant. Calpine and Bechtel=
=20
agreed to pay for part of the extension.=20
Peter Cartwright, president and chief executive of San Jose-based Calpine,=
=20
also said Gonzales' support was important.=20
"We didn't want a situation where the Energy Commission overruled the city,=
"=20
Cartwright said. "We have to live here."=20
Construction on the natural gas-fueled plant could begin this summer, meani=
ng=20
it could start generating enough electricity for 450,000 homes in 2003.=20
The Metcalf plant would be built in the Coyote Valley, one of the city's la=
st=20
remaining chunks of open space. The plant has been opposed by Internet=20
equipment maker Cisco Systems Inc., which plans to build a $1.3 billion=20
office complex nearby. A Cisco spokesman did not return a call for comment=
=20
Wednesday.=20
Members of the Santa Teresa Citizen Action Group, based in a neighborhood=
=20
near the proposed plant, said the mayor failed to win any significant=20
environmental concessions on the Metcalf plant. The group's president,=20
Elizabeth Cord, said she will go to court to block the plant if necessary.=
=20

Panel OKs weakened utility district bill=20

By Ed Mendel=20
UNION-TRIBUNE STAFF WRITER=20
May 30, 2001=20
SACRAMENTO -- A watered-down bill originally intended to create a San Diego=
=20
County municipal utility district was approved by an Assembly committee=20
yesterday after San Diego Gas & Electric dropped its opposition.=20
The committee rejected a bill last week authorizing the creation of a new=
=20
municipal utility district. The new version of the bill simply expresses th=
e=20
"intent" that the county, cities and special districts cooperate to obtain =
a=20
stable source of low-priced power.=20
The author, Assemblyman Mark Wyland, R-Escondido, pledged to bring the bill=
=20
back to the committee for final approval after attempting to negotiate=20
agreements in the Senate on the operation, governing and public approval of=
a=20
proposed new agency.=20

"What we are really asking for today is to let this proceed out of this=20
committee, because we do need to address many, many, many of the issues tha=
t=20
were raised and then have the bill come back to this committee for its fina=
l=20
working," Wyland told the committee.=20
Wyland said he hopes to negotiate a bill that would allow the new agency to=
=20
obtain cheap long-term power contracts, possibly by forming groups of=20
customers that could purchase power directly from generators or marketers.=
=20
He said the agency might also generate some power through San Diego County=
=20
Water Authority hydroelectric facilities or by purchasing the South Bay pla=
nt=20
in Chula Vista, which is owned by the San Diego Unified Port District and=
=20
operated by Duke Energy under a lease.=20
One thing the new agency would not be doing is using the public power of=20
"eminent domain" to force SDG&E to sell any of its property. An SDG&E=20
lobbyist said the utility dropped its opposition after it was made clear th=
at=20
the proposed new agency would not have the power of eminent domain.=20
Wyland said he thought the original version of the bill was rejected by the=
=20
committee partly because SDG&E "felt burdened" and partly because committee=
=20
members thought it might influence attempts to create municipal utility=20
districts in other areas of the state.=20
Advocates of municipal utility districts say they have historically provide=
d=20
cheaper power than investor-owned utilities. The Los Angeles Department of=
=20
Water and Power has continued to provide low-cost power to its customers=20
during the current electricity crisis.=20
A proposal to create a new municipal utility district may appear on the=20
ballot in San Francisco this fall. Backers of the San Diego proposal=20
initially wanted to create a new district without a vote of the people,=20
hoping to quickly get cheaper power.=20
Now legislators have made it clear that a vote of the people will be=20
required. But there is a dispute over whether approval should require a=20
majority vote or a two-thirds vote, as urged by some Republicans who think=
=20
the proposed new agency might be able to raise taxes.=20
Wyland said that even if the legislation is approved this year, getting a=
=20
detailed proposal ready for the ballot next March may be difficult. Some=20
groups in Escondido and San Marcos have been talking about creating municip=
al=20
utility districts in those cities.=20
Jim Madaffer, a San Diego city councilman, told the committee that he=20
believed the bill could allow streamlining and efficiencies and other steps=
=20
that SDG&E might find beneficial.=20
"It's on that premise that I am here today," Madaffer said, "and I believe=
=20
also that SDG&E is now allowing it to move forward."=20
Madaffer was corrected by the committee chairman, Rod Wright, D-Los Angeles=
,=20
who said the committee decides whether bills pass. Madaffer quickly agreed,=
=20
saying he meant to say that SDG&E had dropped its opposition.=20
Wright, who opposed the original version of the bill last week, joined in t=
he=20
13-to-0 vote for the new measure.=20
"You have a lot of work yet to do," Wright told Wyland.=20
The committee also approved a bill by Assemblyman Jay La Suer, R-La Mesa,=
=20
that would require the SDG&E "balancing account" debt to be paid off by=20
ratepayers over a five-year period.=20
Legislation capped SDG&E rates last September at a level far below the=20
wholesale cost of power, producing a debt of more than $600 million by last=
=20
month, a sum known as the balancing account.=20
An aide said La Suer wants to protect ratepayers from a large "balloon=20
payment" due in a short period. The Utility Consumers' Action Network of Sa=
n=20
Diego opposed the bill, arguing that the debt might be lowered by=20
negotiations or regulatory action.=20
The aide said the bill does not specify the amount of the debt and that La=
=20
Suer is willing to discuss the issue with the consumer group.=20

Davis fails to sway Bush on price caps=20

Meeting cordial, but president remains opposed to controls
By John Marelius=20
UNION-TRIBUNE STAFF WRITER=20
May 30, 2001=20
LOS ANGELES -- After a weeklong buildup worthy of international summitry,=
=20
President Bush and Gov. Gray Davis met yesterday to discuss California's=20
electricity crisis, leaving unresolved their fundamental disagreement over=
=20
the merits of imposing federal price controls to curb soaring utility rates=
.=20
While the meeting between two political rivals was steeped in cordiality, i=
t=20
ended with Davis proclaiming he intended to sue the federal government if i=
t=20
didn't deliver price relief to California electricity consumers.=20
"I am going to pursue every recourse available to me," Davis told reporters=
=20
after the 35-minute meeting. "We will file a lawsuit against the Federal=20
Energy Regulatory Commission for failing to discharge its legal obligation.=
"=20
While Bush refused to budge on wholesale electricity price caps, Davis said=
=20
he was pleased by one Bush action. The president designated Pat Wood III,=
=20
Bush's first appointee to the FERC, to act as a personal emissary between t=
he=20
governor and the regulatory commission's investigation into allegations of=
=20
market manipulation by Texas natural gas distributors who charge California=
=20
three times what they charge New York.=20
More than four months into his presidency, Bush yesterday made his first=20
public appearances in California as president of the United States.=20
The president met with Marines and their families at Camp Pendleton in the=
=20
early morning, then traveled to Los Angeles, where he delivered a speech on=
=20
energy and economic policy to the Los Angeles World Affairs Council.=20
Summing up his approach to unpredictable electricity prices and supplies, t=
he=20
president said:=20
"My administration will continue to work to help California through the=20
difficult months ahead. All our efforts are guided by a simple test: Will a=
ny=20
action increase supply at fair and reasonable prices? Will it decrease dema=
nd=20
in equitable ways? Anything that meets that test will alleviate the=20
shortages, and we will move swiftly to adopt it. Anything that fails that=
=20
test will make the shortage worse."=20
The president outlined his opposition to electricity price controls -- a=20
stance Democrats have exploited to portray the Bush administration as a=20
lackey for profiteering energy companies.=20
"We will not take any action that makes California's problems worse. And=20
that's why I oppose price caps," he said. "At first blush, for those=20
struggling to pay high energy bills, price caps may sound appealing. But=20
their result will ultimately be more serious shortages and therefore even=
=20
higher prices."=20
An long-distance war of words between Democrat Davis and Republican=20
administration officials, particularly Vice President Dick Cheney, has=20
escalated in recent weeks over energy policy.=20
With Davis two seats away on the World Affairs Council dais, Bush pointedly=
=20
called for an end to the acrimony.=20
"For too long, too often, too many have wasted energy pointing fingers and=
=20
laying blame," the president said. "Energy is a problem that requires actio=
n=20
-- not politics, not excuses, but action. Blame shifting is not action; it =
is=20
a distraction."=20
Leading up to yesterday's meeting was a week of posturing by spokesmen for=
=20
the two leaders on seemingly every detail, including who invited whom to th=
e=20
meeting in the first place.=20
But when the two met -- Bush and Davis are casual acquaintances from their=
=20
briefly overlapping tenures as governors -- the session was, by all account=
s,=20
as devoid of rancor as it apparently was of productivity.=20
"The meeting was cordial, informational, businesslike," Davis said.=20
As Davis told it, he even deployed the only remaining weapon in his=20
gubernatorial arsenal -- the threat of a lawsuit -- delicately.=20
"I said, 'Mr. President, you understand I have to do everything in my power=
=20
to seek relief for the people of this state. You would do the same thing if=
=20
you were in my position,' and he agreed," Davis said.=20
Karl Rove, Bush's hard-nosed chief political adviser, also characterized th=
e=20
meeting in amiable terms.=20
"They did agree on one thing: that California is entitled to price relief,"=
=20
Rove told reporters. Of course, he went on, the president's prescription fo=
r=20
price relief lies in conservation and development of new energy sources, no=
t=20
price controls.=20
"When the cap was lowered by the administration in California, 3,000=20
megawatts of power disappeared from California (to be sold elsewhere)," Rov=
e=20
said.=20
For his part, Davis contended the Bush administration's free-market economi=
c=20
arguments against price caps are beside the point. He maintained federal la=
w=20
compels the FERC to guarantee reasonable wholesale electricity prices and=
=20
stabilize wildly fluctuating markets.=20
Lawsuits by states against the federal government have little history of=20
success. Indeed, a lawsuit against the FERC by Assembly Speaker Bob=20
Hertzberg, D-Van Nuys, was thrown out by the 9th U.S. Circuit Court of=20
Appeals yesterday just as Davis was threatening another one.=20
Davis said the court rejected Hertzberg's suit because it failed to allow=
=20
administrative remedies to be exhausted. The governor said he filed a numbe=
r=20
of motions with FERC seeking rate relief last Friday and would wait 30 days=
=20
or so for those to run their administrative course before proceeding with=
=20
legal action.=20
Davis said the total electricity bill in California went from $7 billion in=
=20
1999 to a projected $50 billion this year. He said he reminded the presiden=
t=20
of the potential political disaster facing both of them if the electricity=
=20
situation is not brought under control.=20
"I did tell him that if we have to pay $50 billion for power, it could well=
=20
trigger a recession in California, which could drag down the American econo=
my=20
into a recession as well," he said.=20
Bush was greeted at both stops yesterday by protesters denouncing his energ=
y=20
and environmental policies. Three women -- one of them former Green Party=
=20
U.S. Senate candidate Medea Benjamin -- tried to disrupt Bush's World Affai=
rs=20
Council speech and were removed from the ballroom.=20
Earlier in the day, Davis held a session where several San Diegans told how=
=20
they were affected by soaring electricity costs: YMCA director Michael=20
Brunker, Gabriel and Christine Rodriguez of Chiquita's Mexican Restaurant,=
=20
and Cybele Thompson, president of the San Diego Building Owners and Manager=
s=20
Association.=20
"It may not be as obvious as an earthquake," said Brunker of the Jackie=20
Robinson Family YMCA. "But it's hit us in such a way that it's really=20
crippling a lot of people."=20
Staff writer Ed Mendel contributed to this report.=20

Head of FERC confident California suit will fail=20

By Toby Eckert
COPLEY NEWS SERVICE=20
May 30, 2001=20
WASHINGTON =01) The head of the Federal Energy Regulatory Commission said=
=20
Wednesday he is confident the agency would prevail in a legal battle with=
=20
California Gov. Gray Davis over electricity price controls.=20
"I feel good about our chances," FERC Chairman Curtis Hebert said, citing a=
=20
federal court's decision Tuesday to dismiss a similar suit filed by=20
California legislative leaders.=20
Davis has threatened to sue the FERC for allegedly failing to meet its lega=
l=20
obligation to ensure that wholesale power costs are "just and reasonable."=
=20
Such a move would be the latest escalation in Davis' running battle with FE=
RC=20
over its response to California's power crisis.=20
"I think the 9th Circuit (federal appeals court) made very clear that the=
=20
commission is doing its job appropriately," Hebert told reporters.=20
A three-judge panel of the San Francisco-based court rejected a lawsuit by=
=20
California Senate President Pro Tempore John Burton and Assembly Speaker=20
Robert Hertzberg that sought to force FERC to impose wholesale price=20
controls. The court said the lawmakers "have not demonstrated that this cas=
e=20
warrants the intervention of this court."=20
Davis says that his administration has laid a firmer legal foundation for a=
=20
suit by first pursuing administrative remedies at FERC. Several state=20
agencies made a flurry of filings with the commission last week, asking it =
to=20
crack down on wholesale prices that have increased ten-fold over the past=
=20
year.=20
"The (legislative leaders') lawsuit was thrown out ... because there wasn't=
a=20
preliminary filing with FERC asking for the relief that the plaintiffs went=
=20
into court to seek," Davis said Tuesday. "We have made such filings as=20
recently as Friday. ... So we have to give them some time to review that=20
information."=20
But legal experts said the state may have a tough time building a successfu=
l=20
case against FERC.=20
Federal statutes generally "give a great deal of discretion to agencies in=
=20
carrying out their duties," said Peter Shuck, an expert in regulatory polic=
y=20
at Yale Law School. "So it would very hard for the state to prevail."=20
Hebert and fellow Commissioner Linda Breathitt have rejected the firm price=
=20
controls sought by Davis, overruling Commissioner William Massey, who favor=
s=20
them.=20
Hebert insists the commission has taken steps to lower wholesale power pric=
es=20
in California and punish price gouging. He cites $125 million in refunds=20
recently ordered by the agency and a "price mitigation" plan that went into=
=20
effect Tuesday.=20
The plan will use a complicated formula to set a price ceiling for power=20
sales during severe shortage periods. Generators breaching the limit will=
=20
have to justify their prices to FERC or pay refunds.=20
Davis and other critics say the plan is riddled with loopholes and will bri=
ng=20
little relief to the state. They also say the refunds ordered by FERC to da=
te=20
fall far short of the billions of dollars in overcharges the state has=20
endured.=20
Meanwhile, a spokesman for the California Independent System Operator, whic=
h=20
controls most of California's power grid, said the agency intends to meet a=
=20
Friday deadline for filing comments with FERC on joining a regional grid=20
management organization. FERC has threatened to revoke the limited price=20
curbs if the ISO fails to present a plan for joining the organization.=20
California's three investor-owned utilities =01) Southern California Edison=
, San=20
Diego Gas & Electric and Pacific Gas & Electric =01) plan to make similar=
=20
filings.=20

Grid managers call Stage 2 alert, but hope to avoid blackouts=20

ASSOCIATED PRESS=20
May 30, 2001=20
SACRAMENTO =01) Managers of the state's power grid called a Stage 2 alert=
=20
Wednesday and asked customers to conserve power as temperatures climbed.=20
The Independent System Operator said it did not expect blackouts, although=
=20
spokeswoman Stephanie McCorkle said electricity supplies were "obviously ve=
ry=20
tight."=20
Higher temperatures statewide were driving up electricity use about 1,200=
=20
megawatts over Tuesday, she said.=20
Power plants off-line for repairs and increased power usage caused the=20
state's electricity reserves to dip below 5 percent, prompting officials to=
=20
declare a Stage 2. A Stage 3 alert is called when reserves are in danger of=
=20
falling below 1.5 percent and can be followed by rolling blackouts.=20

FERC Chief Unfazed By Threat of Third Lawsuit=20

By RICARDO ALONSO-ZALDIVAR and JUDY PASTERNAK, Times Staff Writers=20

?????WASHINGTON--The beleaguered chairman of the Federal Energy Regulatory=
=20
Commission said Wednesday that he was not fazed by California Gov. Gray=20
Davis' threat to sue the agency for failing to cap wholesale electricity=20
rates.
?????California officials have gone to the federal courts twice before to=
=20
force FERC to impose price caps, Curt Hebert told reporters. And the U.S. 9=
th=20
Circuit Court of Appeals in San Francisco has twice rejected the suits.
?????Davis, observing that FERC has a legal obligation to ensure that=20
wholesale electricity rates are "just and reasonable," threatened to go to=
=20
court again after he failed in a meeting Tuesday to persuade President Bush=
=20
to support caps on wholesale electricity prices.
?????"They've sued us two times and they have been [dismissed] two times,"=
=20
Hebert said. "I feel very good about it."
?????Responding to reporters' questions, Hebert also appeared to be unaware=
=20
of media reports that President Bush had asked a rival for his chairmanship=
,=20
Patrick Wood III, to play a special role in dealing with California's=20
problems.
?????Wood, a Bush confidant who until now had been chairman of the Texas=20
Public Utility Commission, was confirmed by the Senate as a FERC commission=
er=20
last week and is widely expected to be named to Hebert's job. The president=
=20
can designate any FERC commissioner as chairman without further action by t=
he=20
Senate.
?????White House officials said during Bush's visit to Los Angeles on Tuesd=
ay=20
that Wood would follow up on concerns raised in the president's meeting wit=
h=20
Davis.
?????Wood said in an interview that he talked briefly with Davis three week=
s=20
ago and more recently with California PUC President Loretta Lynch. He said=
=20
his charge is vague: to review the entire situation.
?????"I'm looking at short-term things and long-term things," he said, noti=
ng=20
that he had heard from lawmakers "on both sides of the aisle" complaining=
=20
that FERC had not gone far enough.
?????Wood, who advocates a more activist role for FERC, said he wants to=20
monitor how the agency's efforts to limit price spikes in California are=20
working and that he might push for changes. Unlike Hebert, he said the=20
agency's standard for deciding whether a company has market power--enough=
=20
influence to sway prices--needs to be reconsidered. He said he is also open=
=20
to increasing the amount of rebates ordered to utilities for January.
?????And he said he thought FERC should also take another look at the desig=
n=20
of California's deregulated market. "Your work never stops," Wood said. "Yo=
u=20
never get there and say, 'We're done.' "
?????California, he added, "is salvageable," though he said blackouts are=
=20
inevitable this summer.
?????FERC itself has acknowledged that California is paying unfair prices f=
or=20
electricity, particularly during power shortages. But instead of imposing=
=20
price caps, the agency has instituted a complex system to monitor the marke=
t=20
and seek refunds from power sellers that overcharge during emergencies.
?????A majority of FERC's governing board believes that price caps would=20
deter investors from building new power plants in California, thereby=20
complicating efforts to increase energy supplies. Price caps "would destroy=
=20
what is left of California," Hebert said Wednesday.
?????State officials disagree.
?????With California paying as much as $1,900 per megawatt hour to avert=20
blackouts earlier this month--five times the current market price--state=20
officials argue that FERC's approach is no deterrent and that the agency ha=
s=20
a legal obligation to impose price caps.
?????Davis and others contend that temporary controls would bring order to=
=20
the power markets and prevent further damage to California's economy. They=
=20
point out that the energy industry operated efficiently under government-se=
t=20
rates until the recent onset of deregulation.=20
?????But the courts have held that FERC has wide latitude in fulfilling its=
=20
obligations under federal law.
?????In an April 11 decision denying a petition for relief by the city of S=
an=20
Diego, a 9th Circuit panel ruled that the same law that gives FERC authorit=
y=20
to impose price caps also allows it to pursue alternatives.
?????On Tuesday, the same court dismissed a petition from state Senate lead=
er=20
John Burton, citing its earlier decision in the San Diego case.

Copyright 2001 Los Angeles Times=20

The Home Energy Drain=20
How Appliances Draw Electricity, Even When Off=20

By DAVE WILSON, Times Staff Writer=20

?????When devices such as stereos are turned off, we think of them as dead.=
=20
But it turns out they're only mostly dead. And mostly dead is a little bit=
=20
alive.

Graphic: Standby power consumption of common appliances.=20

?????For instance, have you ever wondered how a television set can understa=
nd=20
the "power on" command from the remote control if the TV isn't using any=20
power at all? The fact is nearly all television sets--in fact, most home=20
appliances--use power as long as they're plugged in to a live electrical=20
outlet, if only to receive and interpret remote control signals or keep the=
=20
little clock running.
?????All those little trickles of electricity can add up to a steady stream=
=20
of juice that users end up paying for--power that's being drained from a=20
system that can't meet the state's needs as California enters a summer of=
=20
rolling blackouts and rising power bills. Plus, the delicate electronic=20
circuitry that makes our favorite gizmos work can be damaged when the power=
=20
flow abruptly stops and starts.
?????Researchers refer to this sort-of-off-but-sort-of-on condition as=20
"standby power" and say the drain on the electrical supply is=20
significant--and continuing to rise.
?????"When you add up all these things like TVs and VCRs, it looks like=20
standby use in California is almost 10% of the residential use of=20
electricity," said Alan Meier, staff scientist at the Berkeley Laboratory a=
nd=20
an internationally recognized expert on the phenomenon of standby power dra=
in.

Shopping for a Surge Supressor
Fluctuating power levels can cause damage under certain conditions to devic=
es=20
that draw power all the time. One tactic to prevent damage is using a surge=
=20
supressor.
=01=07 When shopping for a surge suppressor, the key number is the maximum =
level=20
of electricity that will be let through in case of a surge. This number is=
=20
referred to as, depending on the marketing guys behind the product, "clampi=
ng=20
voltage," "let-through voltage" or "voltage rating." The lower the number,=
=20
the better.
=01=07 Right now, the best rating you can get is a surge suppressor carryin=
g the=20
UL inspection seal certifying that it's met the 1449 standard and a clampin=
g=20
voltage rating of 330 volts.
=01=07Also, look for suppressors with a 1-nanosecond response time or less;=
=20
cheaper suppressors take longer to respond to a spike, which can be too lat=
e=20
to protect your components.

-- DAVE WILSON

?????The cost of this drain probably isn't especially onerous to most=20
consumers. Leaving your answering machine plugged in all the time, for=20
instance, will cost you about 37 cents a month, assuming you're paying abou=
t=20
17 cents a kilowatt-hour.
?????The total cost of standby power probably is in the neighborhood of $10=
0=20
a year per household at current rates, though that figure will rise as=20
electricity becomes more expensive. Though that's not a vast sum to many=20
people, reducing electricity usage is critical to maintaining a steady powe=
r=20
supply in California.
?????The difference between a Stage 2 power emergency and Stage 3--the poin=
t=20
at which rolling blackouts kick in--is only 3.5% of total reserve electrica=
l=20
capacity. So cutting back on that leaking 10% in homes can make the=20
difference.
?????Not all the standby power is wasted. An answering machine is pretty=20
useless if it doesn't have access to power all the time since part of the=
=20
device's job is to be primed to pick up the phone if it should ring. It's=
=20
those other devices, such as the microwave oven clock that pulls power even=
=20
though nothing's being cooked, that are the problem. All devices that use=
=20
standby power could be designed to use as little electricity as possible.
?????Standby power drain is getting worse as more of the items we have in o=
ur=20
homes move from mechanical switches and timers to electronic controls. The=
=20
typical household today uses 7,000 kilowatt-hours of power each year.
?????Overall, residential consumption of power has risen 17.6%, from 68,000=
=20
gigawatt-hours in 1990 to an estimated 80,000 gigawatt-hours, according to=
=20
the California Energy Commission. Even when adjusted for population growth,=
=20
Californians use more power than they did 10 years ago--despite the fact th=
at=20
household appliances got more energy efficient.
?????One reason: We've got a lot more energy-gobbling devices in our homes.=
=20
For instance, Fred Johnson, who works in Silicon Valley's high-tech industr=
y,=20
has three TVs, each with a DVD player. He's also got two TiVo digital=20
recorder boxes, four computers and two stereo systems.
?????"Fortunately, it's not all on simultaneously," he said.
?????Another reason for the increase in power draw is a simultaneous increa=
se=20
in the number of devices that are always on. For instance, older microwave=
=20
ovens used a mechanical timer, which means the device didn't draw power=20
unless the oven was actually heating something up. Newer ovens use electron=
ic=20
touch pads and digital clocks, both of which require a steady stream of=20
power. Part of the reason for the shift was interest in reliability;=20
mechanical switches wear out or need maintenance, whereas electronic contro=
ls=20
are generally service free.
?????Those digital controls are showing up in things such as stoves,=20
dishwashers, washers and dryers, which means these devices also leak=20
electricity even when they're not actually working.
?????Some devices are so badly designed that they generally use as much=20
electricity when they're theoretically off as when they're on, Meier said.=
=20
"The set-top boxes for cable and satellite television broadcasts are good=
=20
examples," he said. Manufacturers aren't under any pressure to improve the=
=20
design of electronic components in the home because there's no financial=20
incentive for them to do so.
?????Consumers wind up paying the price.
?????"We think there are typically 20 devices in a home that are consuming=
=20
standby power," Meier said. "In the average home in California, standby pow=
er=20
is somewhere around 500 kilowatt-hours a year. And some users are paying 20=
=20
cents a kilowatt. So that'