Refineries May Be Exempt From Blackouts (KFWB) --

A member of the state's Public Utilities Commission has issued a draft decision that would exempt oil refineries from blackouts, to curb the potential that gas prices in the state could skyrocket. The full PUC will consider the issue on June 28.

Meanwhile, a judge ordered energy companies and state regulators to provide more information about fuel production, so that the PUC can make more decisions on exemptions.

Governor Gray Davis asked the PUC to find a way to minimize disruption of fuel production this summer. A rolling blackout could set back refineries up to a week, causing gas shortages and higher prices at the pump.

Four refiners have asked for exemptions. Combined, they produce about one-fourth of the state's 2.3 million barrels a day.

Chevron petitioned the governor separately, saying it would be forced to reduce production unless granted blackout exemptions. The company accounts for about 18 percent of the state's refining capacity.

Davis has supported blackout exemptions from the oil industry.

-- PHO (owennos@bigfoot.com), June 14, 2001