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Council: Many causes for high electricity costs They run from good economy to the weather By William McCall The Associated Press PORTLAND � 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 last summer to drive up power prices to levels 10 times higher than ever seen before 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 council noted that unseasonably warm weather melted the Northwest snowpack earlier than normal, reducing hydropower generation in the late spring and early summer. During the same time, planned and unplanned outages at a number of power plants, including some coal-fired plants, further reduced the power supply. Meanwhile, California�s efforts to deregulate electric utilities encouraged short-term sales, forcing many utilities in that state to buy high-priced power on the open market and pass on the cost to customers. The analysis of high prices follows the council�s study of Northwest power system reliability, initiated in early 1999 and completed earlier this year. In that study, the council concluded there is an increasing chance the region will face power supply problems in coming winters, when demand for power is highest � estimated at a 1-in-4 chance of problems by 2003. High prices for wholesale electricity last summer also caused some major industries in the region to curtail production and lay off workers. 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 an actual power-supply shortage. On the Web: The Northwest Power Planning Council analysis will be available at its Web site: http://www.nwpcc.org Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2000 Mail Tribune, Inc.