The start of hourly electricity pricing in California isexpected to be delayed because the state chartered wholesaleelectricity spot market is encountering logistical and technicalproblems. The Board of Directors for the state Power Exchange (PX)meets today to determine how far into July to postpone the openingof the new market. A formal announcement on a new target date isexpected to be made following the board meeting.

Day-ahead power trading has been operating since March 31 withwide price variations and about three dozen participants, includingthe state’s three large investor-owned electric utilities that, bylaw, have to buy and sell all of their power through the PX. Lastmonth, the PX announced it would open the hourly pricing market byJune 27, following several weeks of market simulation training thismonth. A combination of start-up problems-some software-related andothers tied to the training and organization of staff members-aroseover the past weekend during 48 hours of market simulation, a PXspokesperson said. In addition, there has not been sufficientinterface testing between the PX and the state Independent SystemOperator, the state-chartered third-party operator of the state’stransmission grid.

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