With some interim, quick-fix measures to add peaking plant capacity and demand response programs on a crash basis, California should have more than adequate power supplies to meet expected peak demand next summer, energy officials were told last week. The assessment was provided by state energy officials during a joint meeting of the state’s major energy agencies in San Francisco.

The California Independent System Operator (CAISO) basically gave a positive outlook for the summer, with qualifications. Both the California Energy Commission (CEC) and California Public Utilities Commission (CPUC) outlined programs for improving reserve margins as well as capability to meet extreme peak-demand situations like those experienced during July’s heat storm and all-time record peak demand levels.

In other areas, the three agencies looked at current issues involving distributed generation, renewable portfolio standard goals, and greenhouse gas (GHG) emissions standards as outlined in the state’s now two-year-old Energy Action Plan.

CAISO CEO Yakout Mansour added a new element to the state’s energy planning beyond next summer, saying that while reserve margins are improving the state is not at a point where it can become complacent, and resource “quality” also needs to be taken into consideration.

“We’re still far from a point where we need to worry about pushing added supplies too soon or too much,” Mansour said. “We also have to look at resource adequacy as more than just growth in megawatts; we need to pay attending to the kind and mix of existing generating capacity.

“Longer term, I would like to see the state assess resource ‘quality’ as well as ‘adequacy’. How quickly generation sources start, where they are located, how consistent they operate, and how efficient they are all are aspects that need to be taken into consideration. It is not just megawatts, but quality, too.”

CEC members lauded CPUC President Michael Peevey for his commissioner’s order following the July heat storm that resulted in Southern California Edison Co. adding three new peaking plants on an expedited basis and doubling the amount of megawatts in its residential customers’ air conditioning cycling program. The program allows residentials to voluntarily agree to a lower rate in return for having their air conditioning involuntarily cycled on and off in the midst of major peak-demand hours.

©Copyright 2006Intelligence Press Inc. All rights reserved. The preceding news reportmay not be republished or redistributed, in whole or in part, in anyform, without prior written consent of Intelligence Press, Inc.