Emergency situations likely this summer

Emergency situations likely this summer: California ISO chief

Washington (Platts)--22Apr2004


California will likely face emergency power situations, or "stage alerts" this
summer, given the state's slim capacity reserves, said the President and CEO
of the California Independent System Operator Terry Winter. The ISO said in
its 2004 summer assessment, released last week, it expects to have adequate
supply to meet peak demand this summer. However, the ISO admitted that its
contingency reserves are thin, a situation that could lead to problems if
there are higher-than-expected peak loads or if other circumstances occur that
tighten supply. "My guess is we'll have stage alerts," said Winter Thursday at
briefing on the state's summer power situation. A "Stage One" emergency occurs
when generating reserves dip between 6% and 7%. In the event of Stage One, the
ISO calls on conservation throughout the state. A Stage Two emergency occurs
when generating reserves are less than 5%, and the ISO then calls upon
voluntary load reduction.

This story was first published in Platts real-time news and market reporting
service Platts Electricity Alert (http://electricityalert.platts.com ).