Officials

The head of California’s small power producers’ trade group and state political officials clashed in separate news media conference calls Wednesday over whether past and present political considerations are hampering moves to bring stability to the state’s continuously unsettled energy markets.

Although California officials are gaining optimism from new electric generation plants finally coming on line today and in the next two weeks, there are signs that the electron rush of the past few years may peter out if the current uncertainties surrounding the state’s electricity markets continue to fester.

California officials last week announced a deal with its small qualifying facility (QF) generators and progress in creating what its governor is calling a “pincer movement” between Sacramento and Washington, D.C., to force lower wholesale prices. Gray Davis was ebullient in claiming a “day of accounting” is coming for merchant generators in which they either take heavy discounts on monies owed them, or substantial decreases (federal price caps) in power prices going forward.

California officials Wednesday announced a deal with its small qualifying facility (QF) generators and progress in creating what its governor is calling a “pincer movement” between Sacramento and Washington, D.C., to force lower wholesale prices. Gray Davis was ebullient in claiming a “day of accounting” is coming for merchant generators in which they either take heavy discounts on monies owed them, or substantial decreases (federal price caps) in power prices going forward.

Both private and public sector energy titans were singled out for criticism and scrutiny by California state officials Tuesday, adding to the legal and political moves that have become increasing intertwined as summer approaches, patience wears thin and easy solutions seem more distant.

In the wake of last week’s Presidential energy trip to California, state officials are continuing their love-hate relationship with the Bush Administration, which Gov. Gray Davis credits with providing the “little things” needed to boost supply and cut demand, but avoiding “the big enchilada” of wholesale price relief.

California state and local officials Thursday reviewed a new proposal from Houston-based Reliant Energy offering lower emergency spot market power prices in exchange for letting up on air emission restrictions that limit the hours of operation annually to some of Reliant’s power plants along the coast in Ventura and Santa Barbara counties.

California state and local officials Thursday reviewed a new proposal from Houston-based Reliant Energy offering lower emergency spot market power prices in exchange for letting up on air emission restrictions that limit the hours of operation annually to some of Reliant’s power plants along the coast in Ventura and Santa Barbara counties.

Energy officials last week urged Congress to clear away the regulatory, legislative, tax and rate-related hurdles that are holding up construction of much-needed new power transmission and natural gas transportation facilities to serve the nation’s expanding energy appetite.