California governor lauds PUC approval of power procurement plans

San Francisco (Platts)--17Dec2004

California Governor Arnold Schwarzenegger on Thursday lauded the state Public
Utilities Commission's decision approving long-term power procurement plans
for the state's three investor-owned utilities. "These new guidelines will
help to ensure that Californians get the most reliable sources of energy at
the best prices available," he said in a statement. "[Thursday's] vote
corrects one of the major contributors to the energy crisis. By giving the
utilities the ability to enter into long-term contracts, California will avoid
being at the mercy of the spot market. These procurement rules, combined with
the resource adequacy decision, should result in new power plants being built
in California," he said. 

The PUC Oct 28 approved an order laying out
requirements, by which utilities must prove by June 2006 that they have
adequate power resources to serve their load needs plus a 15% reserve margin.

This story was originally published in Platts Electricity Alert
(http://www.platts.com/Electric%20Power/Real-Time%20Information/Electricity%2
0Alert/)

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