California Electric Grid Operator's Chief Exec, VP Resign
The San Diego Union-Tribune --Jun. 2
Jun. 2--The formerly controversial chief executive of the California's electric grid operator resigned yesterday, as did a second top official, but the chairman of the organization said it remained prepared to manage power supplies as summer approaches.
The ISO has reported that electric supplies should be adequate to meet demand
this summer -- traditionally the period of highest power demand -- although
reserves are narrower than it would prefer. Kahn took part in a conference call
with reporters after the resignations of Terry Winter, the ISO's chief executive
since 1999, and Elena Schmid, vice president of corporate and strategic
development. The ISO chairman said Winter and Schmid did not give reasons for
their resignations, but that board members had known "for a long time"
that there would be a change in the ISO's management because of the demands of
the jobs. "In their view, it was time for them to go," he said.
"This is a very grueling, very tough job."
In a subsequent phone interview, Kahn said the departures were unrelated to
the ongoing legal dispute between California and the Federal Energy Regulatory
Commission over governance of the ISO's board. FERC has said it has authority to
tell the ISO how to pick its board, whose members are now appointed by the
governor.
Kahn said the departure of Winter and Schmid were voluntary and didn't stem
from policy disagreements with the board. He said the ISO hoped to retain both
executives as consultants.
"We would like it, if possible, for Terry to remain available for a few
years," Kahn said. "There is a lot of history that Terry has in
setting up the organization."
Kahn said the board decided to accept the resignations immediately and begin
the search for replacements rather than delay the departures. Winter sparked
outrage in the state when he went to FERC in December 2000 and won its approval
for removing price caps on wholesale electricity. Prior to then, the ISO's board
had progressively lowered the maximum selling price for wholesale electricity in
an effort to rein in the growing power crisis. Winter, who could not be reached
for comment yesterday, said later he sought the intervention of FERC in order to
deal with the crisis. But electricity prices soared far higher with caps removed
and critics say his action worsened the state's plight.
"I have been calling for Terry Winter's departure for three years,"
state Sen. Joseph Dunn, D-Garden Grove, said yesterday. "His action was an
outright betrayal of California. He should have been terminated that weekend.
For the life of me, I have no idea why Terry Winter remained in the CEO position
until this morning."
The search for Winter's replacement will be nationwide and perhaps
international, Kahn said.
"If we found somebody in Canada or Australia who was terrific, we might
hire them," Kahn said. "We might want to expose it to the largest
possible field." He said he doubted that Schmid's position would be filled
before a new CEO is appointed.
--The Associated Press contributed to this report.
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