Off Peak

October 1, 2001

Pennies From Heaven

 

Make that 2.3 cents-the miserly refund that California says it might owe for power that it sold to the Pacific Northwest.

Every time it rains ... it still leaves those hydro reservoirs just a little bit short.

In August, the California Department of Water Resources (DWR) filed evidence at the Federal Energy Regulatory Commission claiming nearly $1.5 billion in refunds on some 6.8 million megawatts of power it purchased between Jan. 17 and June 20 from suppliers in the Pacific Northwest. The figures imply that California overpaid by about $215.50 per megawatt-hour.

By contrast, the DWR says it sold some 1.35 MWh to Pacific Northwest buyers over the same period. But on those sales, DWR admits it owes refunds of only $31,241, or about 2.3 cents per MWh.

Question: Please state your name and business address.

Witness: My name is William Green. ... I am the manager of billing and settlements for the California Energy Resources Scheduling Division (CERS) of the California Department of Water Resources.

Question: Did CERS keep records of its bilateral energy purchases and exchanges?

Witness: Yes. ... We are able to identify the source of the power, by delivery point, that we purchased in bilateral transactions, and therefore confirm that it originated in the Pacific Northwest.

Question: What price have you used as the basis for calculating refunds?