Enron Mail

From:jennifer.rudolph@enron.com
To:market.development@enron.com, ca.team@enron.com
Subject:NEWS: State by State predictions for summer
Cc:
Bcc:
Date:Tue, 10 Apr 2001 01:41:00 -0700 (PDT)

* from Associated Press (4/9/01)
* discusses rates and blackout potential for each state
* Louisiana on verge of power crisis, they say...
* I think I might move to Nebraska!

Here's an attachment for easy distribution:



Here's the full article for quick scanning:
Monday April 9 4:23 PM ET
Power Situation by State
By The Associated Press,
A state-by-state look at the electric power situation for summer:

Alabama: Blackouts and rolling brownouts are unlikely as utilities are
required to maintain a reserve 15 percent above what is needed to meet peak
demand. Residential and business customers will pay rates about 1.1 percent
above a year ago.

Alaska: Blackouts and brownouts are unlikely. Hydroelectric power is
plentiful, and generating systems are not being taxed. Electric bills are
expected to fall slightly.

Arizona: There is little likelihood of a power interruption. Utilities are
prepared to handle the summer electricity demand, and price caps prevent the
major utilities from increasing rates.

Arkansas: Blackouts and rolling brownouts are highly unlikely. Electric bills
are expected to rise 5 percent as increased fuel costs are passed on to
customers and because the summer is expected to be even hotter than a year
ago, when readings topped out at 111 degrees in Little Rock.

California: Forecasts of tight power supplies throughout the West have energy
experts in California warning of statewide rolling blackouts this summer.
Power grid managers say concerted conservation efforts, accelerated
construction of new power plants and ``a bit of luck'' could help avoid
blackouts. Grid managers have already ordered rotating blackouts on four days
since January. Los Angeles will most likely be spared because the L.A.
Department of Water and Power provides its own generation and isn't connected
with the state's grid.

Colorado: The state is unlikely to experience blackouts or brownouts as 93
percent of its power comes from coal-fired plants. Because of fixed,
long-term contracts for coal, producers do not anticipate any fuel cost
adjustments.

Connecticut: No brownouts or blackouts are anticipated. Brownouts are
possible, though, if there is a prolonged spike in usage while power plants
are down. Utilities are under a mandatory price rate cap.

Delaware: Enough power is available to avoid blackouts or brownouts, but
questions linger about whether utilities can deliver it. Power is undergoing
deregulation in Delaware and officials are concerned over the possibility of
increased costs. However, under a 1998 deregulation law, the cost of
electricity is temporarily capped.

Florida: Power outages are unlikely this summer as the state has reserves of
about 20 percent. Utility companies have already increased their rates to
cover higher fuel costs. Unless coal and oil wholesale prices increase
sharply, consumers should not expect major rate increases.

Georgia: Blackouts and brownouts are unlikely in the state because a
for-profit regulatory system gives suppliers an incentive to build more
generating plants. Rising costs for natural gas, which fuels almost all new
electric plants, could increase residential electric bills by 25 percent.

Hawaii: There is little likelihood of blackouts, rolling brownouts or price
spikes. As an island state, Hawaii's electricity system is not connected with
that of other states. Each island has its own generation system and supply is
sufficient to meet demand.

Idaho: There is little chance of blackouts or rolling brownouts but bills are
rising. The state's largest utility wants a 34 percent increase in
residential rates.

Illinois: Blackouts and rolling brownouts are unexpected as generating has
been increased with a number of small ``peaker'' plants. Homeowners shouldn't
see a rate increase, either; electricity rates are locked in through 2004
under the state's deregulation plan.

Indiana: There is no expectation of blackouts or brownouts unless there are
weeks of very hot weather or a power plant stops operating. Utility companies
are urging consumers to conserve energy and believe that will maintain the
remaining state energy surpluses, which have decreased from 30 percent to 10
percent over the past decade.

Iowa: While the state does not expect blackouts this summer, problems could
occur as early as 2002 with serious capacity problems by 2006. Only
single-digit price increases are expected this summer.

Kansas: Blackouts and rolling brownouts are unlikely. Kansas has never had a
regional transmission blackout. The size of electric bills will depend on how
hot it gets and how much power customers use for air conditioning. State law
prohibits price spikes by regulated utilities, which supply 70 percent of
residential customers.

Kentucky: Electricity rates in the state are among the lowest in the nation,
but will likely rise between 3.2 percent and 3.8 percent by 2003, largely due
to pollution control equipment upgrades. There is adequate supply to avoid
brownouts and blackouts this summer.

Louisiana: No blackouts are expected this summer but utility officials say
the state is on the verge of a power crisis unless more plants are built.
Consumer advocates say bills are likely to increase by as much as 30 percent
with very high natural gas prices and a hot summer in the forecast.

Maine: Five new natural gas-fired power plants are on line or coming on line
soon, reducing the prospect of any rolling blackouts. No consumer rate
increases are expected.

Maryland: The Public Service Commission does not expect any service
interruptions and believes electricity rates will not rise. An electric
deregulation plan implemented last year reduced, and then froze, rates for
homes and businesses.

Massachusetts: Blackouts and brownouts are unlikely because New England has
added a half dozen new power plants in the past 18 months - enough supply to
outpace demand surges. Residents will likely see hefty rate hikes in the
winter, including as much as 42 percent for some consumers.

Michigan: Under a state law signed last year that will deregulate the
electricity industry in 2002, utilities cut rates by 5 percent and must cap
those rates for five years. Although demand for electricity is growing
between 2 percent and 3 percent annually, utilities say they have enough
supply to meet demand.

Minnesota: No blackouts or rolling brownouts are likely unless there is an
extended heat wave or a power plant failure. Electricity costs are expected
to remain steady. Many customers, however, will spend the summer months
paying off natural gas and electricity bills from the long, cold winter.

Mississippi: Blackouts this summer are unlikely. The two main power suppliers
are taking measures to boost their reserves during peak summer months and new
independent generating plants also are available. Mississippi Power expects
bills for customers to be 3 percent to 6 percent higher this summer. Entergy,
another supplier, has not filed its summer rate plan yet.

Missouri: Utilities have plenty of generating capacity and supply contracts,
so service interruptions aren't expected. The state Public Service Commission
says three large utilities are bringing new or expanded generating plants on
line. State law bars rate spikes by PSC-regulated utilities, so customer
bills shouldn't reflect higher generating costs.

Montana: Blackouts and rolling brownouts are not expected. Montana Power
customers will not see price increases this summer because the company is
under a virtual rate freeze until July 2002. Flathead Electric's rates rose
29 percent on April 1 and an additional 60 percent increase is possible this
fall. The two companies serve more than half of the customers in Montana.

Nebraska: No rolling blackouts are expected. Electric bills are not expected
to increase since the state's largest utility already increased its rates by
2 percent to 4 percent.

Nevada: Major utilities are not expecting blackouts or rolling brownouts, but
monthly electricity bills for two power companies will go up 1 percent to 2
percent a month through September, based on already-authorized incremental
rate increases. State lawmakers, reacting to California's energy crisis, are
processing measures that would block deregulation from taking effect. Gov.
Kenny Guinn also has said he will not let deregulation take effect under 1997
and 1999 laws unless he's confident consumers won't be harmed.

New Hampshire: Blackouts are unlikely but customers may have to conserve
power on very hot days. As part of deregulation, rates will drop about 12
percent for customers of the state's largest electric utility. But rates
could rise 20 percent to 30 percent for customers of the second-largest
utility.

New Jersey: Blackouts are unlikely because of protections included in a
2-year-old energy deregulation law. Rates are capped until 2003. However,
regulators allowed utilities to raise natural gas rates over the summer, 2
percent a month through July, to make up for money lost over the winter to
skyrocketing fuel prices.

New Mexico: Most of the state will escape power outages and rate increases
during the summer months.

New York: To head off potential power shortfalls in New York City, the New
York Power Authority is rushing to finish construction of 11 small natural
gas turbines. Upstate New York's largest utility says it has enough power to
avoid blackouts and brownouts during the summer. Rates are regulated across
much of the state, but in New York City customers pay market prices.

North Carolina: No blackouts or rolling brownouts are expected. No major rate
cases are pending in the state among the large, regulated utilities.

North Dakota: The state exports about 70 percent of the electricity produced
from seven coal-fired power plants and is facing no power shortages this
summer. Electricity bills to power air conditioners are not expected to
double from the previous summer the way natural gas bills doubled in the
winter.

Ohio: No blackouts or rolling brownouts are expected unless there is a long
heat wave. Prices for residential customers will remain flat for the next
five years as part of a deregulation plan that took effect Jan. 1.

Oklahoma: There is little likelihood of blackouts or rolling brownouts
between May and September, but Oklahoma Gas & Electric, which has 700,000
customers in the state and northwestern Arkansas, expects electricity bills
to be 10 percent to 15 percent above last summer.

Oregon: Some extraordinary measures may be needed to ensure there are no
rolling blackouts or brownouts this summer. The measures could include
curtailing hydroelectric programs that help salmon. Price spikes could occur.

Pennsylvania: No blackouts or brownouts are expected. The state is a net
exporter of power and has more than enough supply to meet demand. Electricity
bills will not rise this summer because power companies agreed to cap their
rates, in come cases through 2010.

Rhode Island: Blackouts are unlikely, partly because of power plants built in
New England in recent years. Businesses could see electric rates rise as much
as 46 percent.
South Carolina: With reserves of about 15 percent, there is very little
chance of power interruption in the state. Two major utilities have obtained
rate increases of about 3 percent to reflect higher fuel costs. Increased
demand from summer air conditioning normally pushes summer bills up 50
percent by July.

South Dakota: The majority of power comes from dams or coal-fired generating
plants rather than natural gas. There is little chance of power shortages
this summer and rates should remain stable.

Tennessee: Tennessee Valley Authority electric rates were last raised in 1997
and should remain steady through the summer. No blackouts or brownouts are
expected.

Texas: Additional transmission lines should reduce the likelihood of
blackouts or rolling brownouts. Certain fuel surcharges related to natural
gas prices may cause higher electricity bills.

Utah: Officials are counting on Californians to cut their energy use and free
more power for use on the Western electricity grid to avoid blackouts or
brownouts. Utah power has received a 9.4 percent interim rate increase and
has 19 percent rate increase awaiting approval.

Vermont: Chances of blackouts or brownouts are low. Much of Vermont's
electricity is imported from Quebec, though the state is also dependent on
the regional power grid that serves New England. Electric rates are
regulated.

Virginia: Blackouts and brownouts are highly unlikely because of an increase
in the generating capacity of the state's largest utility. The size of
electric bills will be determined by the weather and consumption, not any
change in rates, which are capped through 2007.

Washington: Blackouts and brownouts are unlikely, although utilities will
have a razor-thin power margin that would not withstand the loss of a power
plant or transmission line. Electricity largely comes from dams, and a severe
drought is reducing the water supply and raising prices. Industrial and
residential customers of public utility districts have already seen rate
increases. Rates could rise 10 percent to 20 percent this year.

West Virginia: Generating capacity is sufficient to meet peak air
conditioning needs. None of the four major utilities has requested a rate
increase.

Wisconsin: Electric bills could run as much as 10 percent higher this summer
because of surcharges to cover rising prices for natural gas, which fuels
many plants. State officials ordered utilities in December to increase their
reserves from 15 percent to 18 percent to bolster reliability during the
summer.

Wyoming: Blackouts and brownouts are unlikely but could occur because the
state grid is intertwined with other systems that could experience shortages.
Xcel Energy, serving Cheyenne, has applied for a 57 percent price increase.
Similar filings are expected from other suppliers.