Energy Advisor Pleas for Price Caps, Says State Short on Summer Supplies (KFWB) -- Despite claims by Governor Gray Davis that California has turned the corner on electricity supply, his chief energy adviser says the state will still fall short for summer. S.

David Freeman is also asking for federal help in the form of price caps to handle the anticipated power shortages. Freeman says contracted power will reduce the risk of blackouts and the state's overall energy outlook has improved, but it is not enough. "On a real cool summer day we've got three quarters of the power under contract. On a real hot day we may have only a third," said Freeman.

Conservation is another factor that will determine how the summer energy situation plays out, but Freeman says the state can't get through the power crisis alone. Convincing federal regulators to cap the soaring wholesale market cost of electricity is key. He says the state cannot afford to keep paying what amounts to $50 billion a year to import power.

"We hope they will hear the fact that California if being bled to death financially by these overcharges," said Freeman.

When regulators meet next week, the state is expected to plea for relief. They will also argue that unless these prices fall, California will fall deeper in debt and drag the rest of the country into a recession. Price caps on wholesale electricity have so far been rejected by President Bush.

State officials hope the Federal Energy Regulatory Commission will disagree with the Republican president as political pressure grows. The Democratic-controlled Senate has hearings planned on the issue two days after the commission meets to discuss California's power crisis.

-- PHO (owennos@bigfoot.com), June 12, 2001

Answers

I like the way these guys keep talking about generation capacity. It's like they've got blinders on. It's TRANSMISSION that is the biggest part of the problem--both gas lines (not enough) feeding into the state, and often log-jammed or half empty, and electrical transmission lines. There is a real bottleneck conecting Southern and Northern California, yet this potential catastrophe (lack of adequate transmission) is continuously glossed over or ignored.

-- JackW (jpayne@webtv.net), June 12, 2001.

Has anybody noticed what the price of natural gas is doing these days on the spot market? In just the past three trading days it has jumped nearly 15%. That's not a pretty picture as far as outlook for California, or anywhere else for that matter, is concerned.

-- Billiver (biliver@aol.com), June 12, 2001.