US FERC chairman warns California is 'skating on the edge'

San Jose, Calif. (Platts)--27May2004

US Federal Energy Regulatory Commission Chairman Pat Wood Thursday told
high-tech industry officials in California that the state is facing potential
power problems this year because of below-normal hydropower levels, the
closing of some generating plants, and the derating of transmission lines. In
remarks to the Silicon Valley Manufacturing Group's energy summit in San Jose,
California, Wood warned that the state "is skating on the edge" and said he is
concerned over a decline in California's conservation and demand-side
management programs and Southern California's exposure to power shortages if
imports are below expected levels. He also highlighted transmission
constraints in the San Diego area that have caused congestion cost to rise
sharply. Wood, however, said he is optimistic that Gov Arnold Schwarzenegger
will bring back "a broad, action-oriented agenda" that he said has been absent
in the state since the 2000-2001 power crisis.

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