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California Briefly Declares Stage Three Power Emergency by CNN CNN.com, December 8, 2000

SAN FRANCISCO, California (CNN) -- California officials have declared the state's power emergency back at Stage Two after the Golden State briefly experienced its first-ever Stage Three emergency.

State officials urged consumers to reduce usage and scrambled to find more power sources after their declaration of a Stage Three emergency went into effect early Thursday evening.

But the alert lasted for only two hours and did not result in any rolling blackouts. The state went back to a Stage Two emergency shortly after 7 p.m. PST (10 p.m. EST).

Gordon Brown, operations manager of California Independent System Operator, the state agency that oversees the power grid, told CNN Thursday night that the declaration triggered contingency plans to stop pumping water for two hours, during the state's critical power usage hour between 5:30 p.m. and 6:30 p.m. PST.

"The California Department of Water Resources will interrupt pumping water from Northern California to Southern California, which will have no effect on the water supply," said Brown. Brown said the water would be delayed for no more than two hours, just enough time to take the pressure off the power supply during "rush" hour, but that move would not affect residents.

Officials said they did not expect any rolling blackouts, which would normally kick in under a Stage Three alert.

California power officials had declared a Stage Two electrical emergency for the fourth day in a row on Thursday, asking residents to turn off Christmas lights during peak usage times. Gov. Gray Davis and consumer advocates blamed electric deregulation and price gouging by the utilities, for the situation.

The agency that operates the state power grid cited colder than usual weather, maintenance problems and a power shortage across the Northwest.

"This is like the perfect storm of the energy situation," said Davis spokesman Steve Maviglio. "A quarter of the generators are supposedly down for maintenance -- but we believe some are being held back just to get higher prices."

State finds more power

Late Thursday, the California Independent Systems Operator -- the state agency that runs the electricity system for about 75 percent of the state -- confirmed that an additional 2000 megawatts of power have become available.

Three power plants in Southern California will return to full service immediately. "We are happy to be able to come back into full operation and help to alleviate the shortage," said Aaron Thomas, manager of AES Pacific, which operates the plants.

The three plants -- located in Redondo Beach, Huntington Beach and Alamitos -- had been taken off-line or had their power output curtailed because they had reached or exceeded their emission limits following a record demand for electricity in the summer.

However, in light of the state's energy problems, the Air Quality Management District decided to waive some emissions restrictions in favor of power during the crisis.

"Every unit that comes on line will help the ISO meet the urgent needs of the state of California and help us with our supply picture for the next week," said Patrick Dorinson, communications director for ISO.

In a related development, the Los Angeles Department of Water and Power has agreed to sell some power to the ISO.

Power companies under investigation

The companies that generate the state's electricity supply are being investigated by at least two government agencies -- the California Public Utilities Commission and the Federal Energy Regulatory Commission. The CPUC has started inspections of idled plants to verify the legitimacy of shutdowns.

"This is absolutely a problem of deregulation. When we deregulated, theoretically we were going to get lower prices and competition that would make service more reliable. Instead, we've gotten higher prices and less reliable service," said Mindy Spatt, spokeswoman for the Utility Reform Network.

The governor's spokesman agreed. He said Davis would urge any state to think very cautiously before going down the same road.

Over the summer, San Diego saw utility prices double and then triple when rate freezes were lifted. Hotels in the area began charging a two- to four-dollar surcharge to cover the bills. Spatt said some small businesses went under because of utility costs. Now, Pacific Gas and Electric is proposing a statewide rate hike of 17 to 35 percent.

"California businesses and residents will be paying for this for years to come," Maviglio said. "The generators are overcharging suppliers and suppliers will be passing those costs on to consumers."

Davis appealed to the public Wednesday to cooperate with conservation efforts after he lit up a 56-foot tall Christmas Tree at the state Capitol. The tree lights were shut off shortly after the ceremony to set a good example.

A Stage Two emergency is declared when operating reserves fall below 5 percent. Customers who get lower rates for agreeing to go off-line when a power crunch hits have been told to reduce usage.

This is the eighth time in three weeks an electrical state of emergency has been declared in California. Officials said they expect more power problems throughout the winter.