Crisis

Warning that “the impacts of the current energy crisis are just now beginning to be felt in places all across the country,” House Resources Committee Chairman James V. Hansen, R-UT, opened hearings Wednesday on energy legislation (H.R. 2436) that centers on tapping between five and ten billion barrels of oil from the Arctic Natural Wildlife Refuge (ANWR).

Under the shield of anonymity, an economist for a national think tank and a leader in the California legislature spoke candidly last Friday to the spring general meeting of the Western Power Trading Forum in Ojai, CA, concluding for different reasons that political and economic issues have so far stymied the creation of a broadly supported short-term fix to the state’s electricity woes.

Silicon Valley met the energy crisis and backed off, clearing the way for Calpine Corp. and joint-venture partner, Bechtel, to develop a $400 million, 600 MW, natural gas-fired power plant, the Metcalf Energy Center, at the southern-most end of San Jose, CA. If all goes well, Calpine will begin construction this year and have the power plant running by summer 2003.

Silicon Valley met the energy crisis and backed off, clearing the way for Calpine Corp. and joint-venture partner, Bechtel, to develop a $400 Million, 600 MW, natural gas-fired power plant, the Metcalf Energy Center, at the southern-most end of San Jose, CA. If all goes well, Calpine will begin construction this year and have the power plant running by summer 2003.

Due to a relatively warm February and “price-induced reductionsin gas demand,” the winter natural gas crisis is not as bad as itcould it be, according to Energy Security Analysis Inc. (ESAI) inits March Natural Gas Stockwatch. With prices back in the $5 areathe question now becomes, where do we go from here?

If you think the power crisis this winter has been bad, waituntil the summer peak. California Independent System Operator CEOTerry Winter made a shocking presentation to the newgovernor-appointed ISO board recently, revealing the likelihood ofa massive 6,815 MW shortfall of power supply by June.

Lost in the higher profile aspects of California’s chronicpage-one headlines surrounding its energy crisis is the statelegislature’s inclusion of a ban on retail direct access powerdeals, dealing the few remaining nonutility power retailers whatcould be a death blow unless a corrective legislative solution isfound. That corrective action was pursued last week when the headof the state Senate energy committee, state Sen. Debra Bowen,proposed to reinstitute retail energy sales (SB 27X) as part of themeasures being tossed around in the second month of a special statelegislative session called by the governor to address theemergency.

If you think the power crisis this winter has been bad, waituntil the summer peak. California Independent System Operator CEOTerry Winter made a shocking presentation to the newgovernor-appointed ISO board recently, revealing the likelihood ofa massive 6,815 MW shortfall of power supply by June.

Taking steps to ensure Nevada does not fall prey to the”financial and operational chaos” of the California energy market,Sierra Pacific Resources introduced an emergency package ofproposed long-term contracts, tiered price increases, low incomeassistance and conservation programs to stabilize energy markets inNevada.