Widening

The gong has sounded for the start of a widening debate in California over how to structure its electricity markets in the future. Legislative and regulatory initiatives are proposing a move to a core/noncore structure, and the stakeholders are lining up on all sides of the debate. It is not clear whether the state will opt for a regulatory, political or economic solution, or like its infamous 1996 electric restructuring law, make it a hybrid of all three.

Reflecting the recent years of economic downturn and ever-widening state budget deficits, California’s annual growth in natural gas demand exclusive of load for power generation is projected to be under 1% annually over the next 10 years, according to the California Energy Commission staff’s draft energy demand report, 2003-2013, released Feb. 12.

Reflecting the recent years of economic downturn and ever-widening state budget deficits, California’s annual growth in natural gas demand exclusive of load for power generation is projected to be under 1% annually over the next 10 years, according to the California Energy Commission staff’s draft energy demand report, 2003-2013, released Feb. 12.

In the midst of an ever-widening series of battles facing merchant electricity generators during California’s energy crisis, the state’s small generator trade association Wednesday lauded the newly inked deal with Southern California Edison Co. and many of the state’s small qualifying facility (QF) generators as good for consumers and a means of “stabilizing” state wholesale power prices. A string of legal suits by both the utility and QFs has been suspended as a result.