by pea-jay » Mon 11 Apr 2005, 22:50:34
$this->bbcode_second_pass_quote('Nairb', '
')#2 The power outages in california were brought on by companies trying to get rich, not shortages. right? If so then why is it constantly linked to what will happen in the futer in regards to PO.
2. The CA power problems had many causes of which manipulation was only part of. I worked for Sempra at the time and recently chatted to the ISO and the Energy commission on this topic. CA power crisis was caused by the following factors:
- low hydroelectric supplies in the Pacific NW meant less power was available to import
- high gas prices meant gas fired generation was costly and since the price was fixed for the most part difficult to justify.
- stagnant supply: no new powerplants were built over the past decade
- increasing demand: CA population and economy grew phenomenally during the same period.
- limited transmission capabilities: power available in one location was unable to be moved from point a to b due to limitations.
NOW add to this recipe, manipulation and chicanery and you got problems. Did corporate traders and energy company greed cause rolling blackouts: ABSOLUTELY. Would that have happened if underlying situation was different (more supply): NOT AT ALL. Remember, deregulation went into effect in 1998. For two years there werent problems. It was only until supply got tight were the companies able to manipulate things.
Incedentally, All of the factors, minus the manipulation are in place for california this summer. According to the ISO, southern CA could expect stage 3 emergencies if we have a 1:10 summer (HOT).