STAGE 2 EMERGENCY NOTICE [200101054]

The California Independent System Operator is implementing Stage 2 of the Electrical Emergency Plan for the period 04/24/2001 14:05 through 04/24/2001 23:59.

The CAISO is continuing to request additional Supplemental Energy bids during this period. The Plan has been implemented for the following reason(s):

Insufficient Resources.

Participating Transmission Owners are to notify the Utility Distribution Companies within their operational areas.

Stage 2: Operating reserves are currently, or forecast to be, below 5%. The UDC will implement interruptible service programs AS DIRECTED BY THE ISO and will take all additional actions necessary in preparation for immediate implementation of electrical emergency plans and await further orders from the ISO. Advise the UDC to prepare for possible implementation of involuntary firm demand reductions.

This message is from Market Operations at the California ISO.

Notice issued at: 04/24/2001 14:07

-- PHO (owennos@bigfoot.com), April 24, 2001

Answers

California Independent System Operator

FOR IMMEDIATE RELEASE Contact: Patrick Dorinson

April 24, 2001 Director of Communications

1 (888) 516-NEWS

CALIFORNIA ISO DECLARES STAGE ONE/STAGE TWO ELECTRICAL EMERGENCIES

Consumers Urged to Step Up Conservation Efforts

(Folsom, CA

The California Independent System Operator (California ISO) issued a Stage One Electrical Emergency today, April 24, 2001, at 1:40 p.m., followed by a Stage Two Electrical Emergency at 2:00 p.m.

Both emergencies are in effect until midnight tonight.

Warmer than forecast temperatures, especially in southern California, are driving up the demand for power.

The revised forecast for peak demand later this afternoon has jumped from 29,900 to 31,300 megawatts.

In addition, two generator units in southern California tripped off line this afternoon due to forced outages—removing from service 1,080 megawatts of power

The California ISO is optimistic that customer outages will be avoided today, but is encouraging conservation through tomorrow as the state encounters its first heat spell of the season.

Continuously updated information about the California ISO control area’s electricity supply and the current demand on the power grid is available on the web at www.caiso.com.

-- PHO (owennos@bigfoot.com), April 24, 2001.

http://www.vny.com/cf/News/upidetail.cfm?QID=180062

West tries again to curb power prices Tuesday, 24 April 2001 18:54 (ET)

West tries again to curb power prices By HIL ANDERSON, UPI Chief Energy Correspondent

LOS ANGELES, April 24 (UPI) -- A wave of summer weather sweeping across California Tuesday prompted renewed calls to go easy on the air conditioning while in Washington, western lawmakers were launching another attempt to force reluctant federal regulators to put a lid on the volatile wholesale electricity market.

Bipartisan legislation introduced Tuesday by Sen. Diane Feinstein, D-Calif., and Sen. Gordon Smith, R-Ore., would direct the Federal Energy Regulatory Commission to place limits on the price of wholesale power sold in the West for two years.

"This legislation is designed to force FERC to do its job so that the financial crisis does not get any worse than it already is," Feinstein said in a release.

The bill gives FERC the option of either a firm price cap or requiring power generators to charge so-called cost-based rates that reflect the actual cost of producing the electricity rather than selling the megawatts for whatever the market will bear.

The free-wheeling western electricity market has surged to lofty levels in the past year as the growth in demand has outpaced supply and forced utilities in California and the Pacific Northwest to pay a hefty price for electricity.

Feinstein said the measure was aimed at providing "reliability and stability in the western energy market," however it promises to meet resistance in Washington where the Bush administration and key Republican members of Congress have consistently opposed price controls.

FERC officials and the White House have maintained that limiting wholesale prices would discourage the investment in new power plants and other infrastructure needed to increase the supply of energy in the West.

Supporters of the price caps, however, say most new plants won't be online for another year or two and consumers and utilities deserve some degree of federal protection in the interim.

Electricity is expected to remain scarce and expensive in California this summer as hot weather increases the demand for air conditioning.

After a few weeks of cool spring weather kept demand relatively low, things began to heat up on Tuesday and prompted issuance of a Stage Two power alert by the California Independent System Operator.

"The ISO's renewed call for conservation precedes a forecast of 90-degree highs in the inland areas that may tempt many Californians to flip on air conditioners," the ISO said in a statement.

"In addition, two generator units in southern California tripped offline this afternoon ... removing from service 1,080 megawatts (MW) of power," the ISO said. "The California ISO is optimistic that customer outages will be avoided today, but is encouraging conservation through tomorrow as the state encounters its first hot spell of the season."

Pacific Gas & Electric Announced Tuesday that Unit 2 at the Diablo Canyon nuclear power plant in San Luis Obispo would be shut down on April 29 for refueling, a process expected to last some 35 days. The utility said the refueling of the 1,100 MW unit had been planned since 1999.

-- Helium (HeliumAvid@yahoo.com), April 24, 2001.