fw : high speed regulation in california - cera alert - - - - - original message - - - - -
from : webmaster @ cera . com @ enron
sent : friday , january 19 , 2001 5 : 17 pm
to : messages @ cera . com
subject : high speed regulation in california - cera alert
title : high speed regulation in california
url : http : / / www 20 . cera . com / eprofile ? u = 35 & m = 2208
a feverish pitch
the pace of regulatory and political events in california has taken on the
feverish pitch of the energy market crisis itself . important decisions
regarding a wide range of market structure issues are being made quickly at
the
california public utilities commission ( cpuc ) and the state legislature ,
increasing the level of uncertainty most market participants already perceive
in the quickly evolving california market . sudden changes are being made to
the
market structure , changes that used to require years in california  , s complex
regulatory and legislative proceedings .
as rolling blackouts have rippled through urban centers of northern california
on january 17 and 18 , including in portions of downtown san francisco ,
sacramento , and the silicon valley , state officials are scrambling to set up
the appropriate credit mechanisms to ensure the continued delivery of scarce
western energy supplies to california  , s two largest utilities . even at prices
near $ 800 per megawatt - hour ( mwh ) , the california department of water
resources
( cdwr ) , attempting to buy power on behalf of pacific gas and electric ( pg & e )
and southern california edison ( sce ) , has been unable to secure enough to keep
the lights on . in the mean time , legal actions by some energy suppliers
threaten to tip the utilities into bankruptcy  * and are being held at bay only
by
direct intervention of california  , s governor .
below is a summary of the various state actions being pursued concurrently :
* california governor . california governor gray davis continues to attempt to
act on behalf of pg & e and sce to secure long - term contracts for supply from
merchant generation owners and marketers in california . on the same front , the
governor has been negotiating with generators in an attempt to keep them from
seeking compensation through the courts for energy delivered to the utilities .
court - ordered reimbursement could prompt bankruptcy .
* legislature . bills have been approved to authorize continued power purchases
on behalf of pg & e and sce by the cdwr , to restructure the independent system
operator  , s ( iso ) governing board to consist of five members appointed by the
governor , to restrict the ability of the iso to enter into a broader
interstate
regional transmission organization ( rto ) without the explicit approval of
california  , s electricity oversight board , and to prohibit the divestiture of
the investor - owned utilities  , remaining generating assets until 2006 . the
vehicle for pursuing authorization of state bond financing for acquisition of
transmission assets and construction of new generation facilities is still
being developed .
* california public utilities commission . on january 18 the cpuc adopted a
decision prohibiting the sale of sce  , s mohave generating station to aes . this
voids a sale that was announced but not closed . the cpuc also delayed
decisions
regarding sce  , s application to end its rate freeze and the prudency criteria
for utilities entering into long - term supply contracts .
some of these issues will continue to evolve as they progress along their
respective and sometimes intersecting paths , and some will need to pass
through
multiple review bodies . this rapid and erratic evolution has not helped to
decrease either the financial risk associated with supplying energy to
california  , s two largest utilities , or the level of uncertainty in developing
new generation to supply california in the future .
the iso anticipates that it will call stage 3 emergencies ( reserves less than
1 . 5 percent ) for january 19 and will most likely continue to curtail
interruptible customers through the weekend . western energy supplies are being
strained by recent heavy usage of hydroelectric facilities where water
supplies
are already as much as 25 percent below average , owing to low precipitation
and
continued plant outages near 9 , 000 mw in california . the gravity of the
financial condition of california  , s two largest utilities is exemplified by
the
need for other , more creditworthy intermediaries , including california
municipal utilities , state agencies , and some unregulated energy suppliers , to
act as temporary guarantors for the acquisition of energy on behalf of pg & e
and sce .
* * end * *
follow above url for full report .
come shoot the rapids with us at ceraweek 2001 , " shooting the rapids :
strategies and risks for the energy future " in houston , february 12 - 16 , 2001 !
for more information and to register , please visit
http : / / www 20 . cera . com / ceraweek /
e - mail category : alert
cera knowledge area ( s ) : western energy ,
to make changes to your cera . com account go to :
forgot your username and password ? go to :
http : / / www 20 . cera . com / client / forgot
this electronic message and attachments , if any , contain information
from cambridge energy research associates , inc . ( cera ) which is
confidential and may be privileged . unauthorized disclosure , copying ,
distribution or use of the contents of this message or any attachments ,
in whole or in part , is strictly prohibited .
terms of use : http : / / www 20 . cera . com / tos
questions / comments : webmaster @ cera . com
copyright 2000 . cambridge energy research associates
fw : high speed regulation in california - cera alert
- - - - - original message - - - - -
from : webmaster @ cera . com @ enron
sent : friday , january 19 , 2001 5 : 17 pm
to : messages @ cera . com
subject : high speed regulation in california - cera alert
title : high speed regulation in california
url : http : / / www 20 . cera . com / eprofile ? u = 35 & m = 2208
a feverish pitch
the pace of regulatory and political events in california has taken on the
feverish pitch of the energy market crisis itself . important decisions
regarding a wide range of market structure issues are being made quickly at
the
california public utilities commission ( cpuc ) and the state legislature ,
increasing the level of uncertainty most market participants already perceive
in the quickly evolving california market . sudden changes are being made to
the
market structure , changes that used to require years in california  , s complex
regulatory and legislative proceedings .
as rolling blackouts have rippled through urban centers of northern california
on january 17 and 18 , including in portions of downtown san francisco ,
sacramento , and the silicon valley , state officials are scrambling to set up
the appropriate credit mechanisms to ensure the continued delivery of scarce
western energy supplies to california  , s two largest utilities . even at prices
near $ 800 per megawatt - hour ( mwh ) , the california department of water
resources
( cdwr ) , attempting to buy power on behalf of pacific gas and electric ( pg & e )
and southern california edison ( sce ) , has been unable to secure enough to keep
the lights on . in the mean time , legal actions by some energy suppliers
threaten to tip the utilities into bankruptcy  * and are being held at bay only
by
direct intervention of california  , s governor .
below is a summary of the various state actions being pursued concurrently :
* california governor . california governor gray davis continues to attempt to
act on behalf of pg & e and sce to secure long - term contracts for supply from
merchant generation owners and marketers in california . on the same front , the
governor has been negotiating with generators in an attempt to keep them from
seeking compensation through the courts for energy delivered to the utilities .
court - ordered reimbursement could prompt bankruptcy .
* legislature . bills have been approved to authorize continued power purchases
on behalf of pg & e and sce by the cdwr , to restructure the independent system
operator  , s ( iso ) governing board to consist of five members appointed by the
governor , to restrict the ability of the iso to enter into a broader
interstate
regional transmission organization ( rto ) without the explicit approval of
california  , s electricity oversight board , and to prohibit the divestiture of
the investor - owned utilities  , remaining generating assets until 2006 . the
vehicle for pursuing authorization of state bond financing for acquisition of
transmission assets and construction of new generation facilities is still
being developed .
* california public utilities commission . on january 18 the cpuc adopted a
decision prohibiting the sale of sce  , s mohave generating station to aes . this
voids a sale that was announced but not closed . the cpuc also delayed
decisions
regarding sce  , s application to end its rate freeze and the prudency criteria
for utilities entering into long - term supply contracts .
some of these issues will continue to evolve as they progress along their
respective and sometimes intersecting paths , and some will need to pass
through
multiple review bodies . this rapid and erratic evolution has not helped to
decrease either the financial risk associated with supplying energy to
california  , s two largest utilities , or the level of uncertainty in developing
new generation to supply california in the future .
the iso anticipates that it will call stage 3 emergencies ( reserves less than
1 . 5 percent ) for january 19 and will most likely continue to curtail
interruptible customers through the weekend . western energy supplies are being
strained by recent heavy usage of hydroelectric facilities where water
supplies
are already as much as 25 percent below average , owing to low precipitation
and
continued plant outages near 9 , 000 mw in california . the gravity of the
financial condition of california  , s two largest utilities is exemplified by
the
need for other , more creditworthy intermediaries , including california
municipal utilities , state agencies , and some unregulated energy suppliers , to
act as temporary guarantors for the acquisition of energy on behalf of pg & e
and sce .
* * end * *
follow above url for full report .
come shoot the rapids with us at ceraweek 2001 , " shooting the rapids :
strategies and risks for the energy future " in houston , february 12 - 16 , 2001 !
for more information and to register , please visit
http : / / www 20 . cera . com / ceraweek /
e - mail category : alert
cera knowledge area ( s ) : western energy ,
to make changes to your cera . com account go to :
forgot your username and password ? go to :
http : / / www 20 . cera . com / client / forgot
this electronic message and attachments , if any , contain information
from cambridge energy research associates , inc . ( cera ) which is
confidential and may be privileged . unauthorized disclosure , copying ,
distribution or use of the contents of this message or any attachments ,
in whole or in part , is strictly prohibited .
terms of use : http : / / www 20 . cera . com / tos
questions / comments : webmaster @ cera . com
copyright 2000 . cambridge energy research associates