California regulators Thursday approved additional participationby the state’s major electric utilities in the California PowerExchange’s new block-forward markets for ancillary and otherservices. Normally just a footnote, the action drew considerableattention by the California Public Utilities Commission’s fivegovernor-appointed members in light of the recent power crunch inthe state.

Part of the finger-pointing ongoing in the wake of rollingblackouts and supplies dipping below comfortable reserve levels hasincluded criticism of the state’s major investor-owned utilities— particularly San Diego Gas and Electric — for not fullyutilizing their block-forward market-hedging options.

In light of this criticism, the CPUC waived normal processingtimes to vote the added trading authority to Southern CaliforniaEdison Co. and the other major utilities.

Prompting the CPUC action was FERC authorization for the Cal-PXearlier in the year to begin July 1 two new block-forward markets:daily and “balance-of-the-month” markets. The utilities needed theCPUC approval to recover the costs of their participation in themarkets.

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