Gray

Tucson Electric Power Co. contends that California Gov. GrayDavis’ decision to “commandeer” block forward contracts betweenbuyers and sellers in the Power Exchange and transfer them to thestate violated FERC jurisdiction, was illegal and showed littleconcern for the market.

As Gov. Gray Davis made the rounds in Washington and New Yorkseeking support for California’s plan to buy and run powertransmission lines, Moody’s sounded a warning that the plan couldfalter if consumers balk at the price tag at the same time powershortages hit this summer. “Absence of progress on the state’sproposed solutions to the California power crisis could worsen thepower crisis and begin to seriously threaten the health of theeconomy,” Moody’s said in a report issued after the market closedTuesday.

California Gov. Gray Davis “delivered” on his plan to buy outthe transmission systems of the financially-troubled investor-ownedutilities in the state Friday, outlining the framework of a deal,but with no dollar signs attached and no on-the-record agreementswith the utilities.

California Gov. Gray Davis “delivered” on his plan to buy outthe transmission systems of the financially-troubled investor-ownedutilities in the state Friday, outlining the framework of a deal,but with no dollar signs attached and no on-the-record agreementswith the utilities.

California may have to get in the natural gas business to fuelall of the added 5,000 MW of generation capacity Gov. Gray Davis is promising by this summer, the team of industry and state officialsleading the effort said Tuesday in a conference call with newsmedia. It was acknowledged that most of the added 5,000 MW expectedis gas-fired, and in many cases getting the added capacity onsitewill take more air emission changes and greater plans for fuelsupplies.

In what would be described in meteorological terms as a blizzardof proposals, California Gov. Gray Davis and his Democraticmajority state Assembly leaders Thursday announced multiple newlaws to push accelerated generation and conservation efforts thatare envisioned to unfold at a frenetic pace in the weeks and monthsahead.

Seeking to put a positive spin on the state’s first foray intolong-term bulk electricity contracts, Gov. Gray Davis Tuesdayannounced that the state has reached agreement for the commercialterms on an unspecified number of contracts between the state waterresources department and bulk power suppliers, with volumes phasingupward from 500 to 5,000 MW over several years.

CA Gov. Gray Davis yesterday used his emergency powers again toseize a state utility’s defaulted contracts in the California PowerExchange (Cal-PX). In an afternoon press briefing, the governordeclined to discuss the details of the initial long-term powercontracts signed by the state with electric suppliers so far,saying only that an announcement will be made today and will be”positive.”

In his parting shot as FERC chairman last week, James J. Hoecker issued one last plea to California Gov. Gray Davis to join with the Commission to enforce its comprehensive reforms for the state’s beleaguered power market: a $150/MWh soft price cap on wholesale sales, an emphasis on forward contracting by utilities, market-monitoring activities, and state participation in a regional transmission organization (RTO).