Utilities say they are ready for heat
Boost in power supply, delivery
Ken Alltucker
The Arizona Republic
Apr. 24, 2005 12:00 AM
As temperatures rise and air-conditioners click on, area utilities are
convinced they can avoid a power crunch similar to the one that gripped the
Valley last summer.
High energy prices, the challenge of meeting the demands of rapid growth and
securing enough power to cool the desert region during the summer will
translate into higher summer bills. But increased energy supplies and improved
delivery capacity in the Valley have everyone breathing easier.
"For this summer, we have the vast majority (of energy) locked up,"
said Don Robinson, vice president of planning for Arizona Public Service Co.,
the state's largest utility. "We will continue to evaluate the market to
determine if what we can purchase is cheaper than what we can generate."
The price of energy in the Valley can be linked to the West's disparate
sources of energy and events that unfold from the Pacific Northwest through
Southern California and beyond.
At a time when gas prices are surging well past $2 a gallon, the impact of
higher power bills is another factor squeezing consumers.
Valley residents already have taken a hit.
Salt River Project announced this month a "fuel-cost adjustment"
charge that will mean the average monthly bill from May through June will jump
$6.02 to $135. SRP, which doesn't need approval from state regulators to
change rates, said higher natural-gas prices caused the rate increase.
Arizona Public Service customers also will pay higher rates for the first time
in a decade. Last month, state regulators approved an APS rate hike that will
increase the typical bill $3.13 to $75.55.
Despite the rising costs, utilities and state regulators who oversee the
West's patchwork of power plants and delivery lines say there will be
sufficient supply this summer to power the fast-growing region.
Yet there are many pockets where problems could surface for either power
supply or transmission if extreme conditions emerge such as a prolonged heat
wave or large-scale forest fires.
Possible problems
Indeed, many worries persist.
The Pacific Northwest's once-abundant supply of cheap hydroelectric power
remains far below the levels of seven or eight years ago. California
regulators say that the nation's largest state doesn't have much of a cushion.
And like Arizona, Nevada faces the dual challenge of meeting the demands of
rapid growth and securing enough power to cool the desert region during the
peak summer months.
Gregg Fishman, spokesman for the California Independent System Operator, which
oversees California's transmission systems, said, "In a regional heat
wave situation, we're looking at the same sources of power we're all competing
for."
Fresh on the minds of many are the problems of four years ago when a supply
crunch and rolling blackouts roiled the region. A combination of factors,
including California's struggles with deregulation, market manipulation of
energy traders and an insufficient supply and transmission system, exposed the
fragile nature of the West's energy network in the face of rapid growth.
A number of new power sources in the West have since been built, and now the
focus of many energy experts is getting that new power from generating
stations to living rooms.
'Frontier Line' plan
Among the proposed fixes include a $5 billion "Frontier Line" plan
unveiled this month that would better link power supplies and delivery systems
from the Rocky Mountains through California. Though governors in California,
Nevada, Utah and Wyoming have signed an agreement to pursue the project, it
would be several years before proponents could secure financing and build a
beefed-up transmission system crossing the West.
Southern California Edison Co. plans a $680 million transmission line that
would link the Palo Verde Nuclear Generating Station and other western
Maricopa power plants to Southern California.
Phoenix faces its own energy-transmission challenges. Last summer's fire at
the Westwing substation severely disrupted the Valley's ability to bring in
enough power. The region was able to get through July and August without
mandatory blackouts, thanks to a spirit of conservation adopted by area
residents.
Both of the Valley's major utilities believe they have sufficient supply and
improved transmission to prevent last summer's tense moments.
"There should be ample supply of power," said John Fazio of the
Northwest Power and Conservation Council. "There is a shortage of the
cheaper hydroelectric power. It will cost more for utilities to serve their
customers."
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