The California ISO offers a plan, but some fear that rules themselves are the problem.
ISO Credit Requirements.
What California would have saved-in real dollar figures-plus a look at pilot programs from around the country.
Steven Braithwait and Ahmad Faruqui
1 Also cited as contributing factors are the lack of long-term contracting, operating problems in the ISO and power exchange (PX) markets, and suggestions that owners of generation took advantage of the supply shortage and the design of California's wholesale power markets to exercise market power to drive prices higher.
Is the value in commodities, or in managing the supply chain?
Jay S. Polachek and Bruce W. Radford
1. The original consortium of 15 energy companies, announced March 29, 2000, included American Electric Power, Cinergy, consolidated Edison Inc., Duke Enbergy, Edison International, Entergy, Exelon, firstEnergy Corp., FPL Group, PG&E Corp., Public Service Enterprise Group, Reliant Energy, Sempra Energy, Southern Company, and TXU.
Fuel costs drive electric prices, but generators seem perfectly willing to pay a premium for fuel when they're getting top dollar for power.
Carl J. Levesque
For the utility, wresting its assets from PUC control is the real point.
Bill Nesbit Pacific
For the utility, wresting its assets from PUC control is the real point.
Gas & Electric Co.'s 17-month-old proposal to divest its hydro assets via auction likely is dead, a casualty of California's ongoing energy market turmoil. Despite this reality, the utility's auction proposal remained active at the California Public Utilities Commission (PUC) as of press time in mid-January, even as the governor and state legislature held emergency meetings amid rolling blackouts.
When California cries "wolf," will its neighbors cower like sheep?
Robert McCullough
1 ISO terminology is complex and often misleading. A Stage 1 emergency occurs when the ISO does not meet its own reserve criteria. Stage 2 occurs when it cannot meet a 5 percent reserve margin. A Stage 3 takes place when it cannot meet at 1.5 percent reserve margin. An ISO emergency can take place even when local resources are available-so long as they have not been bid into its daily reserve purchasing.
Calif. PUC Application 99-08-022, proposed decisions by Barnett (Aug. 2, 2000), Neeper (Sept. 19, 2000), and Bilas (Nov. 6, 2000)
FERC Docket No. ER01-313-000, filed Nov. 1, 2000
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