Looking Past California: The Emerging Shape of the Generation Sector

Which states had their plants sold off, which didn't, and which ones now face serious price risk.

1 See "" by Energy Ventures Analysis Inc. www.evainc.com

2 See "", published in June 2000 by PJM's Market Monitoring Unit, p. 2. In the year 2000, in five NERC power regions, natural gas represented more than 10 percent of total generation: ERCOT 53.3 percent, SPP 28.4 percent, NPCC (NY/NE) 25.6 percent, Florida (FRCC) 23.8 percent and WSCC 21.8 percent. In PJM only 8.7 percent of generation was gas-fired. Source: Form 759 and 900 data as complied by EVA, Inc.

3 , April 24, 2001, p. A-21.

Off Peak

Regulators count on price signals to force consumers to behave.<b> </b>

Off Peak

May 15, 2001

Now Do as You're Told

 

Regulators count on price signals to force consumers to behave.

Boise, Idaho: Tues. Apr. 10, 2001, 8 a.m.

News Analysis

<br> And in Texas, all customer information flows through ERCOT.

 

News Analysis

 



And in Texas, all customer information flows through ERCOT.

 

Texas thinks it has the right formula for retail choice.

When queried on the wisdom of its restructuring plan relative to California's restructuring woes, Texas likes to point to the new generation capacity coming online, and a supply-demand balance much more favorable than California's.

California's Power Gamble: Long-Term Contracts, Locked-In Risk

High profit potential will attract new power plants, forcing prices down and stranding the state's long-term electricity purchases.


 

High profit potential will attract new power plants, forcing prices down and stranding the state's long-term electricity purchases.

Let's consider three questions crucial to California's energy crisis and its plans for solution.