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Generation
Nuclear
Power Plant in Maryland to Reopen, Others May Follow
California
Targets Power Suppliers for Refunds
PG&E
Warns of Gas Shortage
Davis
Proposes Steps to Crack Down on Power Producers
Nuclear
Plants Cost Less than Coal-Fired Generation
Final
Snake River Plan Includes Dam Breaching
U.S.
Power Plant Boom: 24GW Constructed in 2000
Calpine
Power Plant Blocked by Internet Giant
Diablo
Canyon Plant Hit by Ocean Swell
Wires,
Reliability, and Electricity Markets
The
Price of Restoring Power (Editorial)
California
Legislature Mulls Power Crisis in Emergency Session
Massachusetts
Urges Boost in Power Grid Capacity
Southern
to Sell More Power to California
California
Declares Power Supply Emergency
California
Utilities Look to Power Wholesalers for Relief
Power
Sent to California by Bonneville
Trying
to Follow the Money in California's Energy Mess
Energy
Summit to Address California Power Crisis
Retail
Bankruptcy
for Utilities Could Have Wide Effect
California
Must Control Demand for Power (Editorial)
Deal
Could Cap Electricity Rates, But at a Price
Federal
Pact Would Give Utilities More Time to Pay
Californians
Don't See Power Problem
Federal
Court Says Southern California Edison Can Seek End to Rate Freeze
Illinois
Legislators OK Heating Aid to More Households
Intel
Rejects California Expansion
Coalition
Calls on California to Grow Retail Energy Market to Protect
Consumers
Utilities
Battle Image Problem
Some
Natural-Gas Customers to Pay $15 More Per Month
Legal,
Financial, and Other
NCPA
Seeks to Join Trinity River Lawsuit
NRC
Probes Fraud at TVA Nuclear Plant
Allegheny
to Buy Merrill's Energy Trading Unit
Nstar
Unions to Combine into a Single Utility Workers Local
Utility
Acquisition Under Fire
Southern
Company’s New Subsidiary Gets Green Light from SEC
Cheney
Sees Active Role as Bush's “Utility Infielder”
Utility
Stocks Suffer More Losses
Entergy
Mississippi Files to Sell Mortgage Bonds, Debt Securities
Independent
Power Producers Gain
Generation
Nuclear
Power Plant in Maryland to Reopen, Others May Follow
Nationally,
nuclear power generation has grown by 25 percent since 1990, and the
Nuclear Regulatory Commission (NRC) has allowed more than half of
the nation’s 103 reactors to boost output. And a third have
applied to renew their licenses for another 20 years. Last year, a
plant in Maryland became the first in the country to renew its
license. Since then, three other reactors have also had their
licenses extended. ABC News, Jan. 6 <Full
Story> <Top>
California
Targets Power Suppliers for Refunds
As
millions of Northern Californians prepare for an immediate
electricity rate increase, state officials are pursuing a plan to
cushion the blow by uncovering sufficient evidence of any wrongdoing
by wholesale power suppliers to force firms to give back much, if
not all, of the profits they have earned in the last year. But the
power suppliers targeted insist that they have done nothing wrong,
and the outcome of the investigations remains far from certain. San
Jose Mercury News, Jan. 7 <Full
Story> <Top>
PG&E
Warns of Gas Shortage
Pacific
Gas and Electric Co. (PG&E), in a filing with the federal
Securities and Exchange Commission Jan. 8, warns of what it calls an
“impending natural gas shortage emergency.” It says its
deteriorating credit situation is causing many of its gas suppliers
to decline to sell the utility any more gas, even under existing gas
contracts, without getting paid up front. And PG&E says it
doesn't have the cash to do that.
Worse, it says, some suppliers are refusing to sell gas for
future periods beginning Jan. 12. San Jose Mercury News, Jan. 8 <Full
Story> <Top>
Davis
Proposes Steps to Crack Down on Power Producers
The
Democratic governor delivered his third State of the State speech
Jan. 8 under the watchful eyes of the national media, Wall Street
and worried consumers, all hoping for solutions to the state's
intractable energy crisis. In his most forceful and specific remarks
on the issue, Davis said he will take whatever steps necessary to
keep the state's power system working smoothly. Davis proposed
repealing the law that allows the three major utilities to sell
their remaining generating facilities and instead requiring them to
sell their power to California consumers first. He also called for a
$250 million investment in cash incentives for replacing inefficient
appliances and for energy-smart homes, schools and workplaces. San
Francisco Chronicle, Jan. 9 <Full
Story> <Top>
Nuclear
Plants Cost Less than Coal-Fired Generation
According
to McGraw-Hill’s Utility Data Institute (UDI), production costs at
U.S. nuclear power plants are the lowest of any major reliable
electricity source, including coal. This marks the first time in
more than a decade that nuclear power has even come close to
fulfilling the dreams of its proponents—electricity too cheap to
meter. In 1999, production costs, including fuel and operations and
maintenance, at nuclear power plants averaged 1.83 cents per
kilowatt hour (kWh). By comparison, coal came in at 2.07 cents per
kWh, oil-fired plants at 3.18 cents per kWh, and natural gas plants
at 3.52 cents per kWh. ElectricNet, Jan. 9 <Full
Story> <Top>
Final
Snake River Plan Includes Dam Breaching
The
federal government released its final version of a long-term
strategy to restore threatened and endangered salmon and steelhead
throughout the Columbia-Snake River Basin of the Pacific Northwest.
The Basin-Wide Strategy, announced Dec. 21, is intended partly to
reduce the impacts of hydropower. Environmental groups had asked the
government to authorize breaching of four federal dams on the lower
Snake River in Washington to protect the species. Instead, the
federal government will implement this strategy and will review the
results of the program in 2003, 2005 and 2008. If the anticipated
objectives are not met at these three checkpoints, the government
likely will authorize breaching the Snake River dams. ElectricNet,
Jan. 9 <Full
Story> <Top>
U.S.
Power Plant Boom: 24GW Constructed in 2000
The
U.S. power plant boom is on, says Energy Ventures Analysis, a
Virginia consulting company. EVA’s December issue of its quarterly
Tracking the Building Boom of New Power Plants in the U.S. notes
that a record 23,830 megawatt (MW) of new turbine-based capacity was
built in 2000, and that’s just a start. EVA projects 53.8 gigawatt
(GW) in new capacity this year, 82.8 GW next year, and 79.6 GW in
2003. The 2000 figure, says the firm, represents $10 billion in
investment, providing enough power to supply 8 percent of all the
homes in the U.S. EVA says 5 to 6 projects came on line each month
during 2000. Electricity Daily, Jan. 9 <Full
Story> <Top>
Calpine
Power
Plant Blocked by Internet Giant
Calpine's
proposal for a new power plant in Coyote Valley, one of the bulwarks
in the state's massive buildup to grow California out of its current
energy crisis, has been derailed by Cisco Systems, the world's
leading e-commerce provider. Both Calpine and Cisco are seeking
approval to build near Tulare Hill near San Jose, and Cisco claims
that the proposed $300-million power plant would negatively impact
its planned $1.3 billion worldwide headquarters, which would house
20,000 employees.Los Angeles Times, Jan. 10 <Full
Story> <Top>
Diablo
Canyon Plant Hit by Ocean Swell
Power
generation at the Diablo Canyon Plant's two 1,100 megawatt (MW)
units was cut to 20 percent in the early hours Jan. 11 because big
ocean swells, caused by a powerful Pacific storm, clogged the
plant's cooling water intakes with ocean kelp and debris. The
nuclear power plant on the central California coast was expected to
continue operating at 20 percent power into the morning Jan. 12, the
California Independent System Operator (ISO) said on Jan. 11.
Reuters, Jan. 11 <Full
Story> <Top>
Wires
The
Price of Restoring Power (Editorial)
The
power crisis in California is giving electricity deregulation an
undeservedly bad name. The real culprit is excessive restrictions
over many years, followed by a messy attempt to liberalize. There is
only one way out. Consumers must pay much more for their power.
Higher prices are needed to reduce the utilities' debts, to
encourage plans for new plant and to counter the political
constraints on building new plant. Financial Times, Jan. 9 <Full
Story> <Top>
California
Legislature Mulls Power Crisis in Emergency Session
With
California's power grid near the breaking point, utilities facing
bankruptcy, and energy prices skyrocketing, the state legislature
has gone into an emergency session to look for a way to end the
crisis. The legislature may consider even setting up state-owned and
operated power plants, as proposed by Governor Gray Davis in his
State of the State address earlier last week. But the Legislature is
also looking at quicker fixes for the power problem. “We'll do the
fastest things first,” said Debra Bowen, who chairs the state
Senate Energy, Utilities and Communications Committee. “It's
easier to screw in a light bulb than it is to build a new power
plant, so we'll do the conservation thing starting right away.”
CNN, Jan. 10 <Full
Story> <Top>
Massachusetts
Urges Boost in Power Grid Capacity
Massachusetts
Attorney General Thomas F. Reilly urged electric grid managers Jan.
9 to step up efforts to add new transmission capacity in the state
and region to help curb soaring electric costs. Shining a spotlight
on a largely overlooked issue that could affect millions of
consumers and businesses' electric rates, Reilly said the
Boston-area electric transmission system is “archaic” and long
overdue for upgrades so that area consumers can get better access to
more competitive supplies of electricity. Reilly's comments came as
Massachusetts utilities are phasing in rate increases of 15 percent
and higher to cover soaring costs of fuel used in power plants.
Boston Globe, Jan. 10 <Full
Story> <Top>
Southern
to Sell More Power to California
Southern
Energy recently agreed to be the wholesale supplier of 120
additional megawatts (MW) of generating capacity to the California
power market through an agreement with Thermo Ecotek, said Randy
Harrison, CEO of Southern Energy’s U.S. West Region. “This joint
effort between the two companies should help ease the current power
shortage in California by activating the Mountainview peaking units
and generating electricity to be used in the California market,”
Harrison said. ElectricNet, Jan. 10 <Full
Story> <Top>
California
Declares Power Supply Emergency
California
declared an electric supply emergency Jan. 11 as U.S. government
officials and utility executives met for a third day to hammer out a
solution to the power crisis that threatens to bankrupt the state's
major utilities. The state entity that oversees the power
transmission grid issued a Stage 3 alert Jan. 12, the most serious
level which indicates rolling blackouts may be imminent to avoid the
collapse of the entire power grid. At Washington talks, negotiators
tried to work out a plan that would give the utilities more time to
pay generators and marketers the money owed for the electric power
that has been supplied. Associated Press, Jan. 11 <Full
Story> <Top>
California
Utilities Look to Power Wholesalers for Relief
Charlotte,
North Carolina-based Duke Energy Corp. said Wednesday that it will
meet with California power sellers and government representatives
the weekend of Jan. 13-14 to continue work on an agreement to help
mend California's ailing power market. California Gov. Gray Davis
said the largest sellers of power in the state, including Duke,
Calpine Corp. and Enron Corp., pledged during a seven-hour meeting
Tuesday to consider giving California's two biggest utilities more
time to make payments on power sales. Charlotte Observer, Jan. 11
<Full
Story> <Top>
Power
Sent to California by Bonneville
The
Washington State Bonneville Power Administration is once again
helping California, sending 1,000 megawatts (MW) of hydroelectric
power south during a five-hour peak-use period that ended at 9 p.m.
Jan. 10. More Northwest power is expected to be sent to California
in days ahead, but last night it was unclear how much. Yesterday's
shipment represents about 80 percent of the power necessary to
support a Seattle-size city. Seattle Times, Jan. 11 <Full
Story> <Top>
Trying
to Follow the Money in California's Energy Mess
Since
last spring, California's two biggest utilities have spent $12
billion more for power than they have collected from ratepayers.
With the utilities threatening bankruptcy, the Legislature called
into emergency session, companies putting off expansion plans and
residents braced for rate increases, the search for explanations, or
scapegoats, has reached a fever pitch. But understanding where the
money went is a more complicated matter than pointing to a few
rapacious corporations. For while billions have poured out of the
state, that flow, many experts say, is an inevitable result of the
ill-designed deregulation program that California put in place three
years ago, at the behest in part of its now sickly utilities. New
York Times, Jan. 12 <Full
Story> <Top>
Energy
Summit to Address California Power Crisis
Top
federal officials are expected to meet with California legislators
in Washington on Saturday Jan. 13 to agree on a plan to fix a
critical electricity shortage that has plagued Californians since
June. On Friday Jan. 12, five governors of Western states urged
California to increase efforts to produce more regional power.
“California is not an electrical island,” the governors of
Arizona, Nevada, Montana, Utah and Wyoming said in a letter to
California Gov. Gray Davis. For years, California has relied on
neighboring Western states for some of its power needs. But rapid
growth in those states, with a subsequent increase in power demand,
caught California off guard for the decrease in imported
electricity. CNN, Jan. 13 <Full
Story> <Top>
Retail
Bankruptcy
for Utilities Could Have Wide Effect
With
bankruptcy a possibility for California’s two largest utilities,
consumers have been left wondering if they'll still have power and
at what cost. Experts say it's unlikely the lights will go out and
there's no guarantee consumers would be better off if the utilities
go bankrupt. But what is almost certain is that consumers will pay
more than they do today, whether or not the companies file for
bankruptcy. San Jose Mercury News, Jan. 7 <Full
Story> <Top>
California
Must Control Demand for Power (Editorial)
The
reason for the California electricity crisis can be summed up in
four words: demand grew, supply didn't. The next question, of
course, is, Why? Strange as it seems now, the problem that motivated
industry restructuring in the early 1990's was that California had
too much electricity. Unfortunately, it was very expensive
electricity: costly expenditures on nuclear plants and long-term
contracts dating from the mid-1980's led to much higher prices than
in neighboring states. New York Times, Jan. 11 <Full
Story> <Top>
Deal
Could Cap Electricity Rates, But at a Price
Government
and industry officials sought agreement Jan. 10 on a deal that would
ensure California consumers pay no more for electricity in return
for a promise that the state's power producers could collect a
fixed, and potentially lucrative price for their product for years
to come.
State
and federal government representatives, California's utilities and
its electricity producers are negotiating an accord that could
substantially shrink what producers now charge utilities for
wholesale power and give the beleaguered utilities breathing room to
come up with money to pay for the power they need. But the deal,
while helpful to consumers in the short run, would short-circuit the
state's deregulation effort, which advocates said could still drive
down the state's traditionally high electricity bills if fixed. Los
Angeles Times, Jan. 11 <Full
Story> <Top>
Federal
Pact Would Give Utilities More Time to Pay
Government
and industry officials agreed Jan. 9 to try to ease California's
energy crisis by giving utilities more time to pay the billions of
dollars they owe for high-priced electricity and arranging for
suppliers to provide power under fixed-price, long-term contracts.
The state government itself might become a major buyer of power from
the generating companies “at an attractive fixed rate,”
according to a statement issued after a seven-hour negotiating
session that ended shortly after midnight Washington time. ntially.
Los Angeles Times, Jan. 10 <Full
Story> <Top>
Californians
Don't See Power Problem
As
state officials weigh drastic proposals to deal with what they see
as a deepening electricity crisis, a majority of Californians say
there is no power problem. According to a Los Angeles Times Poll
published Sunday Jan. 7, 54 percent did not believe there was an
actual shortage of electricity in California, while 36 percent said
there is a shortage. Associated Press, Jan. 7 <Full
Story> <Top>
Federal
Court Says Southern California Edison Can Seek End to Rate Freeze
A
U.S. District Court in Los Angeles on Jan. 8 upheld a lawsuit filed
by Southern California Edison (SCE) in November against the
California Public Utilities Commission that seeks to end the state's
retail electricity rate freeze. SCE spokesman Gil Alexander said the
court “upheld our right to recover costs incurred purchasing power
for our customers.” Dow Jones, Jan. 8 <Full
Story> <Top>
Illinois
Legislators OK Heating Aid to More Households
In
a final burst of activity, the outgoing Illinois General Assembly on
Jan. 9 voted to expand heating bill subsidies to low-income
families. About 100,000 more households are expected to tap into the
state's low-income energy heating program as a result of the
legislation. Chicago Tribune, Jan. 10 <Full
Story> <Top>
Intel
Rejects California Expansion
Intel
Corp. says it is unlikely to expand in California any time soon
because the state's energy crisis has made power supplies unreliable
and costly. “Would I okay the expansion of anything in Silicon
Valley right now? Not a chance,” said Craig Barrett, chief
executive officer of the leading computer-chip maker, on Jan. 7.
Santa Clara-based Intel, the state's second-biggest company by
market value, risks losing millions of dollars whenever power
fluctuates even for a fraction of a second because chips being made
can be ruined. But Barrett does not favor re-regulation of the
industry. “I'm not a great fan of government getting involved in
the private sector, especially delivering a key commodity to the
private sector,” Barrett said. Bloomberg News, Jan. 9 <Full
Story> <Top>
Coalition
Calls on California to Grow Retail Energy Market to Protect
Consumers
In
response to concerns that Pacific Gas & Electric (PG&E) and
Southern California Edison (SCE) may not be able to keep their
customers' lights on, a coalition of energy service providers today
said Jan. 11 a stronger retail energy market could help avert a
similar crisis in the future. The Alliance for Retail Energy Markets
(AReM), a coalition of energy service providers, called on the
governor, the legislature and regulators to focus efforts on
fostering a solid California retail energy market that would provide
consumers rate stability through fixed price contracts. Business
Wire, Jan. 11 <Full
Story> <Top>
Utilities
Battle Image Problem
The
head of a New England power plant owners' group yesterday demanded
that electric grid managers speed the release of a report he said
will prove plant owners are not conspiring to gouge consumers. The
appeal came in response to a Union of Concerned Scientists' report
urging grid officials and federal prosecutors to investigate a
possible scheme to close plants and drive up prices for electricity.
“The generation sector has been put in the uncomfortable position
of defending itself against allegations that are blatantly
untrue,” said Sean P. Murphy, President of Southern Energy New England and chairman of the Competitive
Power Coalition, in a letter to William Berry, chairman of ISO-New
England. Boston Globe, Jan. 12 <Full
Story> <Top>
Some
Natural-Gas Customers to Pay $15 More Per Month
Thousands
of Washington homeowners will pay as much as $15 a month more for
natural gas under new rates approved yesterday by the Washington
Utilities and Transportation Commission. The rates, sought by three
utility companies coping with the rising price of natural gas, take
effect today. Some customers will pay as much as 70 percent more
than they did last winter, commission analysts said. Associated
Press, Jan. 12 <Full
Story> <Top>
Legal
NCPA
Seeks to Join Trinity River Lawsuit
The
Northern California Power Agency (NCPA) today asked to join a
lawsuit filed in response to the Department of the Interior's
recently announced ``Record of Decision'' (ROD) on Mainstem Trinity
River Flows. The ROD calls for a significant change in the amount of
water released down the Sacramento and Trinity Rivers. NCPA, the
Sacramento Municipal Utility District and San Luis and Delta/Mendota
Water Authorities seek to intervene in the lawsuit originally filed
in federal court in Fresno by the Westlands Water District. Business
Wire, Jan. 5 <Full
Story> <Top>
NRC
Probes Fraud at TVA Nuke Plant
The
Nuclear Regulatory Commission (NRC) is investigating allegations
that a contractor for the Tennessee Valley Authority (TVA)
fabricated and falsified security screening data, allowing five
uncleared employees to work on nuclear plant outages. The contract
workers' incomplete background checks went undetected for two years
before TVA's Office of Inspector General received a tip,
investigated and found the breakdown in security. Scripps Howard,
Jan. 5 <Full
Story> <Top>
Allegheny
to Buy Merrill's Energy Trading Unit
Allegheny
Energy Inc. said on Jan. 8 it had agreed to buy Merrill Lynch &
Co.'s energy trading unit for $490 million and a two percent stake
in its energy generation unit. Reuters, Jan. 8 <Full
Story> <Top>
Nstar
Unions to Combine into a Single Utility Workers Local
Eight
bargaining units representing 2,000 workers in Boston have agreed to
merge into one local of the Utility Workers Union of America. The
employees are also adopting one five-year contract instead of the
smorgasbord of deals they held with the company, which was formed
when Boston Edison and Commonwealth Energy System merged in 1999.
Boston Herald, Jan. 8 <Full
Story> <Top>
Utility
Acquisition Under Fire
Citizen
Power, a consumer watchdog organization, is drawing fire to Ohio
utility FirstEnergy’s plans to acquire General Public Utilities.
According to Citizen Power, FirstEnergy has not sought prior
approval of the acquisition from the Public Utilities Commission of
Ohio, which violates Ohio law. Industry Click, Jan. 10 <Full
Story> <Top>
Southern
Company’s New Subsidiary Gets Green Light from SEC
Southern
Company has received final approval from the Securities and Exchange
Commission (SEC) to form a new subsidiary that will own, manage
and finance wholesale generating assets in the Southeast. The new
subsidiary, which will carry the legal name of Southern Power Company,
will be the primary growth engine for Southern Company's market-based
energy business. ElectricNet, Jan. 10 <Full
Story> <Top>
Utility
Stocks Suffer More Losses
California's
move to declare an electric supply emergency made it a rough stock
market ride for U.S. utilities on Jan. 11, with the state's two
largest concerns suffering another day of sharp drops. Edison
International's Southern California Edison and PG&E Corp.'s
Pacific Gas & Electric, which both face desperate financial
troubles because of California's power crisis, dropped 3/4 to
$10-1/2 and $1-1/4 to $12-5/16, respectively. Reuters, Jan. 11 <Full
Story> <Top>
Entergy
Mississippi Files to Sell Mortgage Bonds, Debt Securities
Entergy
Mississippi Inc., the Jackson, Miss.-based electric utility owned by
Entergy Corp., filed on Jan. 11 with the Securities and Exchange
Commission (SEC) to sell up to $540 million in first mortgage bonds
and debt securities. The company plans to use the net proceeds to
acquire or redeem outstanding securities or for other general
corporate purposes, it said in the shelf registration filing.
Reuters, Jan. 11 <Full
Story> <Top>
Independent
Power Producers Gain
For
publicly traded independent power producers (IPPs), California’s
power crisis has been a sweet dream. But as beleaguered customers
urge officials to roll back deregulation, though, those advantageous
conditions may not last much longer. For example, in his State of
the State Address Jan. 8, Gov. Gray Davis declared that California
will no longer be “held hostage” by “out-of-state profiteers,” the
independent power producers who sell electricity in the spot markets.
Individual Investor, Jan. 11 <Full
Story> <Top>
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