Federal Regulators Want State to More Actively Monitor Power Supply

(KFWB) 11.05.01, 1:05p --

Federal regulators are setting out new procedures for the state transmission network operator to follow when there is a risk of blackouts. The new rules are aimed at keeping the lights on and avoiding price manipulation by electricity generators.

The Federal Energy Regulatory Commission ruled the Independent System Operator can stop California electricity generators from shutting down power plants for maintenance where there is a risk of blackouts. The California ISO was asked to take a more active role in coordinating plant closings and report unplanned shutdowns to the commission.

The commission will "evaluate and further investigate" such outages if system operator believes the generator is acting to constrict supply and boost prices.

Under the Oct. 23 order, generators that have contracts to supply power to the state will be compensated for ``direct and verifiable costs'' if the system operator forces them to keep their plants running.

Power shortages led to rolling blackouts and soaring energy prices earlier this year. Federal regulators have planned on setting new outage procedures since they approved a plan to control wholesale power prices back in April.

Although the energy crisis has subsided with decreasing demand and power prices, the commission still wants the state to actively monitor the power supply.

-- PHO (owennos@bigfoot.com), November 06, 2001