results of calif power auction ca reviews state power auction results
california ' s closely watched entry into the long - term , bulk power market
turned up 39 bidders at an average 6 . 9 cents / kwh price , the governor ' s office
reported late wednesday , as the state government finished its whirlwind
27 - hour , sealed - bid power auction .
gov . gray davis said the state received a " very representative bid with a
good deal of power bid for , and it was a very good sample , certainly one that
gives us all optimism . "
tom hannigan , director of the state water resource department who oversaw the
auction , said the state obtained " a useful sample across all times of the day
across the spectrum of the year , and we are quite pleased with the initial
results . i look forward to looking through bids and developing some long - term
contracts . our fundamental responsibility here is to purchase power at the
best possible prices for consumers and businesses . "
on wednesday as the bids from the internet - based auction were initially
accessed , davis said he expected a new law from the state legislature by feb .
1 , giving the state authority to consummate deals involving the best of the
bids received in the quick - turnaround auction .
the bids covered six - month , three - , five - and 10 - year durations . hearings in
sacramento continued on the omnibus new law ( s ) that would give the state
long - term buying authority , and also decide how to handle operation of the
utility hydroelectric generation system and over - market purchased power
contracts with so - called " qualifying facilities " ( qfs ) .
bidders , utilities and other market participants expressed initial enthusiasm
for the state ' s new program , with san diego - based sempra ' s ceo telling the
financial community thursday that he is " encouraged " by the state auction .
" we don ' t yet have detailed information on the bids in the first round - - -
and in my opinion that ' s what it is , a first round - - - but from what the
governor has said , i am quite encouraged that we are going to see power
allocated to the three utilities at below the costs that they have recently
been paying in the wholesale power market , " said sempra ' s stephen baum . " that
should ease the financial situation of all three utilities and give us
greater liquidity , opening the way to further measures being discussed , such
as securitization of uncollected balances . "
california ' s governor also pushed ahead on several other fronts , announcing
three new energy - related advisors plucked from the public and private
sectors : mike peevey , a former utility president turned - successful - energy
startup entrepreneur ; s . david freeman , general manager of the nation ' s
largest municipal utility and a veteran of more than four decades in public
power ; and frank zarb , nasdaq stock market ceo and a former top - level energy
adviser in presidents nixon and ford administrations in washington , d . c . in
the 1970 s .
peevey , whose wife was elected to the state legislature in november , will
serve as davis ' s energy adviser ; freeman will help the state water resources
department develop long - term power contracts and zarb will advise davis on
energy finance and market issues .
also on wednesday , davis announced the newly created five - member politically
appointed board for the state - chartered transmission grid operator ( cal - iso )
held its first meeting . it replaces a 26 - member industry stakeholder board
that davis has regularly criticized for representing energy companies rather
than consumers . the new members include close aides to the governor , such as
his business / transportation cabinet - level secretary , head of the state
electricity oversight board , and his senior policy adviser , along with a
veteran consumer group attorney and the chief staff person at the silicon
valley manufacturing group .
a california - based spokesperson for duke , tom williams , confirmed that his
company participated in the auction and that its bids are " all contingent on
coming to agreeable credit terms . " reliant also reportedly participated in
the auction .
" the balls in the state ' s court now , " williams said . in addition to
announcing it had made " credible bids " in the state water resources
department - run electricity auction , duke noted that pre - scheduled outages of
two power plant units to upgrade their air emission controls - - - one each at
moss landing and san diego ' s south bay - - - were nearing completion and would
be back the end of january ( moss ) and march respectively .
results of calif power auction
ca reviews state power auction results
california ' s closely watched entry into the long - term , bulk power market
turned up 39 bidders at an average 6 . 9 cents / kwh price , the governor ' s office
reported late wednesday , as the state government finished its whirlwind
27 - hour , sealed - bid power auction .
gov . gray davis said the state received a " very representative bid with a
good deal of power bid for , and it was a very good sample , certainly one that
gives us all optimism . "
tom hannigan , director of the state water resource department who oversaw the
auction , said the state obtained " a useful sample across all times of the day
across the spectrum of the year , and we are quite pleased with the initial
results . i look forward to looking through bids and developing some long - term
contracts . our fundamental responsibility here is to purchase power at the
best possible prices for consumers and businesses . "
on wednesday as the bids from the internet - based auction were initially
accessed , davis said he expected a new law from the state legislature by feb .
1 , giving the state authority to consummate deals involving the best of the
bids received in the quick - turnaround auction .
the bids covered six - month , three - , five - and 10 - year durations . hearings in
sacramento continued on the omnibus new law ( s ) that would give the state
long - term buying authority , and also decide how to handle operation of the
utility hydroelectric generation system and over - market purchased power
contracts with so - called " qualifying facilities " ( qfs ) .
bidders , utilities and other market participants expressed initial enthusiasm
for the state ' s new program , with san diego - based sempra ' s ceo telling the
financial community thursday that he is " encouraged " by the state auction .
" we don ' t yet have detailed information on the bids in the first round - - -
and in my opinion that ' s what it is , a first round - - - but from what the
governor has said , i am quite encouraged that we are going to see power
allocated to the three utilities at below the costs that they have recently
been paying in the wholesale power market , " said sempra ' s stephen baum . " that
should ease the financial situation of all three utilities and give us
greater liquidity , opening the way to further measures being discussed , such
as securitization of uncollected balances . "
california ' s governor also pushed ahead on several other fronts , announcing
three new energy - related advisors plucked from the public and private
sectors : mike peevey , a former utility president turned - successful - energy
startup entrepreneur ; s . david freeman , general manager of the nation ' s
largest municipal utility and a veteran of more than four decades in public
power ; and frank zarb , nasdaq stock market ceo and a former top - level energy
adviser in presidents nixon and ford administrations in washington , d . c . in
the 1970 s .
peevey , whose wife was elected to the state legislature in november , will
serve as davis ' s energy adviser ; freeman will help the state water resources
department develop long - term power contracts and zarb will advise davis on
energy finance and market issues .
also on wednesday , davis announced the newly created five - member politically
appointed board for the state - chartered transmission grid operator ( cal - iso )
held its first meeting . it replaces a 26 - member industry stakeholder board
that davis has regularly criticized for representing energy companies rather
than consumers . the new members include close aides to the governor , such as
his business / transportation cabinet - level secretary , head of the state
electricity oversight board , and his senior policy adviser , along with a
veteran consumer group attorney and the chief staff person at the silicon
valley manufacturing group .
a california - based spokesperson for duke , tom williams , confirmed that his
company participated in the auction and that its bids are " all contingent on
coming to agreeable credit terms . " reliant also reportedly participated in
the auction .
" the balls in the state ' s court now , " williams said . in addition to
announcing it had made " credible bids " in the state water resources
department - run electricity auction , duke noted that pre - scheduled outages of
two power plant units to upgrade their air emission controls - - - one each at
moss landing and san diego ' s south bay - - - were nearing completion and would
be back the end of january ( moss ) and march respectively .