As if any more fallout from California’s electricity crisiscould be found, a Colorado-based survey/consulting firm Tuesdayreleased summaries of a national client-supported study thatindicates large energy-using businesses are going to be willing topay more to prevent being shut down from electricity outages; andthe costs of those outages is skyrocketing.
Crisis
Articles from Crisis
NV Utilities Try Not to get Engulfed by CA Crisis
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.
Enron’s Profits Up, California Has No Impact
California’s power crisis had no effect on Enron’s fourthquarter earnings and will have little effect on the earnings impactfor this year, COO Jeff Skilling said yesterday. Enron does not owngeneration assets in the state, but markets electricity there, withits profits coming from merchant activities it chooses to conduct.
CA, Capitol Hill Take Steps to Ease Power Crisis
A more comprehensive legislative proposal emerged in CaliforniaMonday designed to stabilize power prices and save the state’s twoprincipal investor-owned utilities from bankruptcy. But it camewith what would be a high price for deregulation advocates, namelythe state taking over the utilities’ hydroelectric generation andtransmission assets. In Washington DC, a Senate bill was introducedthat would give the Department of Energy (DOE) the power to setregional price caps on bulk power transactions in western states.
Focus Shifts to Legislature and Feds as California Crisis Deepens
State-backed financial bailout options for California’s twocash-strapped utilities were being looked at Friday by the statelegislature and treasurer, including public takeover of the stategrid, as Gov. Gray Davis prepared to divulge his plan today priorto making another trip to Washington, D.C., in search of a federalcap on western wholesale electricity prices later this week.
Industry Briefs
Despite market concerns about the ripple effect of California’senergy crisis on nonutility generators, Calpine Corp. on Fridayincreased its diluted earnings per share estimates for the quarterand year ended Dec. 31 to $0.30 and $1.05 per share, respectively.The company also increased its diluted earnings per share estimatefor this year to $1.25 per share. Calpine’s portfolio consists of50 operating power plants in 15 states totaling 4,900 MW. Calpinecurrently operates 26 power plants throughout northern Californiathat generate over 1,200 MW of power. About 600 MW are sold underFERC approved long-term contracts to Pacific Gas & Electric.The balance has been sold forward in the California market to adiversified portfolio of municipal and non-utility wholesalecustomers with strong credit ratings, the company said.
Energy Stocks Take Beating Over California Crisis
Energy stocks took a pounding yesterday mainly in reaction tocontinuing uncertainty over the financial health of California’stwo largest utilities, Southern California Edison and Pacific Gasand Electric, which got a weak short-term prescription by stateregulators (see related story this issue).
Williams Says Earnings Beat Estimates
Responding to investor concerns related to California’s energycrisis, Tulsa-based Williams Cos. said Tuesday that its fourthquarter earnings will be well above expected earnings estimates.Shares of the company had dropped to a 52-week low last week afternews surfaced that California’s utilities — one of Williams’largest markets — might not be able to pay their power bills.
CA Commission Approves 3 New Power Plants
In the midst of a real potential cold weather energy/supplycrisis hovering over the state, the California Energy CommissionWednesday approved a new 500 MW natural gas-fired electricgeneration plant that could help head off shortages in 2002 and twopeaking plants totaling 371 MW that should be online by theupcoming summer of 2001.
SDG&E Passes on Power Deals
Even in the wake of the summer’s power crisis and emergencymeasures, San Diego Gas and Electric can’t find any long-term powerpurchase deals to its liking, and, in fact, it has pulled back arequest-for-proposal it had outstanding, soliciting longer-term,fixed price contracts.