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Council Studies Rising Electricity Prices by William McCall, Associated Press The Oregonian, October 14, 2000

Changes in the weather and fewer new power plants round out
a list of reasons prices shot up this summer

A Northwest Power Planning Council analysis of high electricity prices shows a number of causes, including economic growth, fewer new power plants, less emphasis on conservation and changes in the weather pattern.

"This is not just a Northwest problem, it is a problem for the entire West Coast," said council Chairman Larry Cassidy of Vancouver, Wash.

The council has members from Idaho, Montana, Oregon and Washington and was charged by Congress in the Northwest Power Act of 1980 with protecting fish and wildlife in the Columbia River Basin while ensuring the region has a reliable power supply.

The report released Thursday said poor conditions at hydroelectric dams, forced outages at some power plants, rising natural gas prices and changing regulatory practices in California combined during the summer to drive up power prices to levels 10 times higher than ever in the West.

The council's analysis also indicated that years of robust economic growth has narrowed the gap between electricity supply and demand, pushing up prices.

The governors of Montana and Washington joined U.S. Sen. Slade Gorton, R-Wash., to ask the council for an analysis and recommendations, which include:

• Limiting power supply contracts to recognize that electricity is a commodity vulnerable to price swings.

• Encourage development of new power plants.

• Manage electricity demand more efficiently, such as Bonneville Power Administration and Portland General Electric pilot programs, to pay their largest customers to reduce their demand for power when prices reach a certain level and supplies are tight.

• Review regulatory practices in California.

• Develop emergency procedures in the event of a shortage.