News Digest

 

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.

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.

 

News Analysis

 

 

 

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.

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.

 

News Digest

 

 

News Digest