Small Snow Pack in Sierras Raises Summer Electricity Concerns in California

By Andrew Galvin, The Orange County Register, Calif. Knight Ridder/Tribune Business News

A lack of snowfall in the Sierra mountains in the past seven weeks has led officials at California's electrical-grid manager to become more concerned about whether there will be adequate supplies of power to meet demand on hot days this summer.

The depth of the snow pack in the Sierras is used as a gauge of the amount of water available to run hydroelectric plants in northern California.

Since the grid manager released its summer power forecast on April 16, "the hydro situation in particular has not gotten any better and may have gotten a little worse," said Gregg Fishman, a spokesman for the California Independent System Operator. "It's not turning out to be a great hydro year."

Fishman stressed that Cal-ISO officials remain "cautiously optimistic" and don't expect to have to call for rolling blackouts, as they did seven times during the California energy crisis in 2001.

Meanwhile, officials at Southern California Edison and San Diego Gas & Electric, the two utilities that together serve most of Orange County, expect demand in their service territories to reach record highs this summer because of population growth and a resurgent economy.

Statewide, demand is up about 4 percent this year, according to Cal-ISO.

The forecasts underscore the difficult situation in which the state finds itself since the 2001 collapse of its ill-fated experiment with partly deregulating the electricity market.

Today, with the Legislature and the California Public Utilities Commission still rewriting the rules that regulate electricity in the state, few power plants are being built.

SDG&E has proposed adding five generating resources to its supply portfolio, including new plants at Escondido and Otay Mesa. The natural-gas-fueled plants would be the first full-size generating plants to be built in San Diego County in decades.

The Escondido plant would be owned by SDG&E, while the Otay Mesa plant, which is owned by Calpine Corp., would sell power to the utility under a 10-year contract.

The proposal is pending before the CPUC, which has scheduled a vote for today.

Edison is building a gas-fired plant near Redlands.

Hydro power accounts for about 16 percent of the state's generating capacity. It tends to be used mostly at times of peak demand, including the hottest days of the summer.

According to a report by the California Energy Commission, the statewide snow pack was just 48 percent of average on May 6, and melting steadily. However, reservoir levels should enable hydro energy production to reach 85 percent of average this year.

"The big question for us is: Will we have to begin drawing on it early in the year to meet high peaks, or will we be able to save much of that for later in the year?" Fishman said. "We'll have to wait and see how the season plays out."

Another problem facing the state is that its aging transmission grid creates bottlenecks that prevent available power from getting to where it is needed.

On one hot day in March, Cal-ISO officials declared a transmission emergency after power lines in the central part of the state became overloaded, preventing power from being moved from north to south. Southern California Edison was told to "shed load," or rotate customers off the grid for 20 minutes, affecting 70,000 customers.

A week later, on March 15, the ISO said the outage could have been avoided if its control-room dispatchers had acted more quickly to call on power plants to ramp up output.

It took disciplinary action against the personnel who failed to follow procedures.

Still, the incident pointed up the role of transmission constraints in creating power shortages.

"The transmission system is being stressed more than it has been in the past," said Ron Nunnally, director of federal regulation and projects at Southern California Edison.

The stress occurs partly because most power plants are being built outside population centers, forcing more power onto transmission lines that lead to those population centers, he said. A number of new plants that serve California are in Arizona and Nevada, he said.

SDG&E is seeking CPUC approval for a transmission line that would enable it to bring in more power from Arizona and Mexico, spokesman Ed Van Herik said.

SDG&E officials expect that demand from its customers at some point this summer will exceed the record of 3,960 megawatts reached in August 1998, Van Herik said.

A megawatt is enough power to serve about 750 homes in summer.

Edison also expects demand to top the record 20,136 megawatts it saw last summer, Nunnally said.

One factor driving the higher demand in Edison's territory is that much of its customer growth is in inland and desert areas where summers are hotter and use of air-conditioners predominates, he said.

Anaheim, the only city in Orange County to have a municipal utility, had forecast a peak summer demand of 550 megawatts, but hit that on May 3, a particularly hot spring day, said spokesman Mike Ebbing.

The city has 586 megawatts of available power.

"Barring anything really out of the ordinary, which is always a possibility -- cross your fingers -- we should be fine" this summer, Ebbing said.

 

-----

To see more of The Orange County Register, or to subscribe to the newspaper, go to http://www.ocregister.com

(c) 2004, The Orange County Register, Calif. Distributed by Knight Ridder/Tribune Business News. For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail reprints@krtinfo.com. EIX, SRE,