Document text
Blackouts are called unlikely in Oregon Power brokers reap windfall of deregulation By Shari Downhill The effects of California�s utility deregulation have crossed state lines in ripples that seem to be growing into a tidal wave. Gov. John Kitzhaber met with utility power brokers Tuesday at the Federal Energy Regulatory Commission to discuss a utility market plagued by high prices and strained supplies. Oregon consumers are left wondering whether there will be enough electricity to go around, what price they�ll have to pay for it and who�s pocketing the profits. Oregonians likely won�t experience rolling blackouts this season, said Bob Jenks of the Oregon Citizens Utility Board, a consumer advocacy group. The Bonneville Power Administration owns contingency supplies that can be used in an emergency, he said. However, such blackouts could occur by 2003 if no new power generation facilities are built, according to the Northwest Power Planning Council, a congressionally appointed four-state group overseeing power concerns on the Columbia River basin. "What folks should understand is that, generally, we�re OK, but we�re tight," Jenks said. California�s power needs are draining supplies throughout the West. Several California power generation plants are down, some for repair, others because they have exceeded allowable pollution levels. The inoperable facilities mean an even tighter power supply in a state where few new generation projects are planned. Those with spare electricity to sell on the open market are reaping the financial rewards, Jenks said. Those include companies such as Houston-based Dynegy Inc., a marketer that raced to buy up electrical generation plants put on the auction block after California�s utility deregulation. Prices on the open wholesale market have been driven to record levels throughout the region. Oregon�s two main electric companies, Portland General Electric and Pacific Power, have asked for � and received � rate increases of up to 29 percent through the Oregon Public Utility Commission. With the region in chaos and demand for electricity high, Dynegy and others are free to sell power on the open market to the highest bidder. But marketers began balking after California utilities voiced fears of bankruptcy and had to be forced by FERC to sell their extra power. Part of FERC�s mandate, Jenks said, is to protect consumers from such pricing tactics, and the Citizens Utility Board has pushed for electricity price caps. The governor has called for price caps as well, but only as a short-term solution, said Catherine VanHorn, communications manager for the state Office of Energy. "The governor has a lot of interests to balance here, but he wouldn�t have jumped on this so quickly if he weren�t concerned about Oregon citizens," VanHorn said. The current regional energy crisis has been heralded as an economic model gone bad: high demand and record prices, with neither giving way. That may be because with utilities federally mandated to meet the electrical needs of customers, additional power supplies must be purchased when demand outstrips a utility�s generation capacity. Some utilities attempt to estimate additional power needs and sign a long-term contract with another supplier, locking in a reasonable price for years � a move FERC has been urging utilities to take. Utility companies do not have the option of declining to purchase electricity when prices skyrocket, Jenks said. Long-term contracts for anticipated needs would insulate consumers from ultimately paying the price for a widely fluctuating electrical market. Consumers can have an impact by taking measures to conserve energy in their own homes, Jenks said, such as installing more efficient home thermostats and using compact fluorescent bulbs. The Northwest Power Planning Council maintains that improved consumer power conservation measures are necessary to avoid power shortfalls in the future. "We�re a long way from a crisis right now," said council spokesman John Harrison. "But, we want everyone to understand we are headed in that direction." Reach reporter Shari Downhill at 776-4463, or e-mail [email protected] . Mail Tribune Home | Ottaway Newspapers, Inc. | Dow Jones & Co., Inc. | Privacy | Contact Us Copyright � 2000 Mail Tribune, Inc.