| South California Faces Summer Power Challenge 
    
 US: May 15, 2008
 
 
 LOS ANGELES - Southern California's electricity system will be challenged 
    this summer, and power emergencies may result if an extended drought leads 
    to massive wildfires, the main US electricity reliability watchdog said on 
    Wednesday.
 
 
 Southern California is the area that most concerns analysts at the North 
    American Electric Reliability Corp (NERC), which on Wednesday issued its 
    summer 2008 outlook.
 
 Of Southern California, NERC said, "capacity margins will remain tight. 
    Significant amounts of imported power are required to fortify capacity 
    margins and preserve reliability, resulting in heavily loaded transmission 
    lines into this area during peak conditions.
 
 "As a result, unplanned major transmission or generation outages, or extreme 
    temperatures/demand may lead to resource constraints."
 
 NERC, of Princeton, New Jersey, is responsible for monitoring the 
    reliability of the power grid in the United States, Canada and parts of 
    Mexico.
 
 NERC said voluntary conservation and on-call interruptible loads will likely 
    be necessary more often than usual this summer.
 
 As always, the biggest factor in how much demand will strain the power grids 
    in California and the United States is the weather.
 
 NERC said nationwide, US temperatures were 12 percent warmer than normal in 
    2007 and 10 percent warmer than normal in 2006.
 
 Last October, wildfires in San Diego County threatened a major transmission 
    line and caused it to go off-line as the San Diego area nearly averted a 
    power crisis,
 
 More wildfires could exacerbate an already precarious situation in 
    California this summer, NERC said.
 
 "Drought conditions persisting in Southern California, Nevada, eastern New 
    Mexico and western Texas currently appear to have no impact on reliability, 
    though potential for wildfires as a result of dry conditions can threaten 
    infrastructure and will be monitored throughout the summer months," said the 
    NERC study.
 
 The California Independent System Operator, manager of the power grid on 
    which flows 80 percent of the state's electricity, forecast a summertime 
    peak demand of 49,071 megawatts, NERC noted.
 
 The all-time peak demand in California was reached in July 2006 at 50,270 
    megawatts.
 
 Cal ISO also saw a 1-in-10 chance that hot weather will increase that peak 
    load forecast by 3,000 megawatts, thus reducing the capacity margin to less 
    than 10 percent without additional power purchases.
 
 Cal ISO spokeswoman Stephanie McCorkle said the grid manager agrees with the 
    NERC assessment that the system needs to be under a careful watch this 
    summer for Southern California. But she said it would take an unlikely 
    confluence of events to create blackouts.
 
 That would mean unexpectedly low imported power from outside California, 
    high generation and/or transmission outages on a hot day, McCorkle said.
 
 "We have more tools in our toolbox than we have had," said Cal ISO. "We have 
    more demand-response to tap now," said McCorkle, referring to customers that 
    voluntarily cut use at times of high demand, often in turn for lower power 
    rates.
 
 In addition to high-use business customers, many residential customers have 
    signed to have thermostats monitored remotely.
 
 (Reporting by Bernard Woodall; Editing by David Gregorio)
 
 
 Story by Bernard Woodall
 
 
 REUTERS NEWS SERVICE
 
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