Business customers of the investor-owned utilities in California are increasingly concerned about the lingering energy crisis that has spiked electricity and natural gas prices and fomented uncertainty about supplies, according to an analysis by the Los Angeles County Economic Development Corp. (LAEDC).
The not-for-profit public benefits organization is encouraging conservation among particular businesses with the most to lose from the predicted rolling blackouts this summer: livestock products, food products, textiles and apparel, paper and allied products, chemicals, plastics, primary metals, fabricated metals, and finally, stone, clay and glass products.
In addition, the LAEDC said the hotel industry and government agencies are big energy users vulnerable to this summer’s expected power crunch.
“Industry has been warned that there will be rolling blackouts in the state starting in May,” said Jack Kyser, LAEDC’s chief economist. “These will be about 55 minutes in duration. Business is demanding advance notice of blackouts, not just because of loss of materials in a production process, but also due to potential risks to workers.”
In a separate study, the Federal Reserve Bank of San Francisco estimated that the average California household will spend $250 more on electricity and $200 more on natural gas (less in Southern California due to climate) for a $450 increase in utility bills this year. Kyser said you can then add another $300 for indirect effects from higher goods and services prices because of these higher costs, so the average increase could be around $750, or about 1.5% of the average California household income.
Â©Copyright 2001 Intelligence Press Inc. All rights reserved. The preceding news report may not be republished or redistributed, in whole or in part, in any form, without prior written consent of Intelligence Press, Inc.
© 2023 Natural Gas Intelligence. All rights reserved.
ISSN © 1532-1231 | ISSN © 2577-9877 |