Posted on 09/22/2006 9:26:47 AM PDT by thackney
WASHINGTON — The Federal Energy Regulatory Commission on Thursday approved a long-delayed revision of California's power grid rules meant to prevent the market manipulation and shortages that spurred the state's 2000-01 power crisis.
The new rules would create a financially binding day-ahead power market and rejigger its pricing system to account for grid bottlenecks, which Houston-based Enron and others exploited to carry out their schemes.
FERC Chairman Joseph Kelliher said the new rules will close loopholes that exacerbated the Western power crisis, but warned that a crisis could still occur, especially in Southern California.
ISO gains new power to prevent blackouts
http://www.sacbee.com/103/story/27389.html
Federal officials Thursday approved new rules for California's electricity-transmission grid that can be summarized this way: No more 11th-hour scrambling for power.
The rules give the Independent System Operator, a quasi-state agency that runs the power grid, the ability to buy electricity and make other adjustments in power flow a day before it's needed.
That could prove significant. Since its inception, the Folsom-based ISO has labored under a major handicap: It had to wait until the last minute before it could buy the electricity needed to smooth out the ebbs and flows of California's power demands.
This led to major problems during the energy crisis of 2000-01. The ISO was forced to beg for huge gobs of power -- as much as 30 percent of what was needed -- literally minutes before it was used. The results included blackouts and soaring wholesale prices, which were passed on to the state's three investor-owned utilities.
No matter WHAT the government takeover of the Nation's electric grid comes up with for rules, the power will flow as it always has, oblivious to what the FERC, DOE, or Kalifonia wants it to do.
Market forces do NOT change the laws of physics.....
Market force do dictate the position of the switch, open or closed. Without a price that can be paid, the switch stays open and the buyer to the East who purchased long term contracts gets the electrons. And the power plant is not turned on to supply power if the price is not going to be paid.
No that would harm Gaia and bring bad Kowma. [ / baby voice]
Well, market forces might have some impact on the guy and or system operating closures.
which Houston-based Enron and others exploited to carry out their schemes.
Yeah, they "schemed" to make California a liberal state so that it would regulate itself into an energy crisis.
The State of Kalifornia, in its infinite wisdom, decided the big ol' utilities had to sell ALL their generators to the market forces (the Enrons, Calpines, etc.), so that "competition" could ensue.
If someone could explain how this would lower the cost to consumers, please feel free.
When all the generators were now privately owned, and offered to the Cal ISO, it was natural that the prices were going to be commensurate with the electrical demand at any given time. This is where the "gaming" of the market was implemented, by strategic with-holding of generators at specific locations, to create bottle-necks and/or increased value for power that was available from some marketers portfolio.
For consumers, the wires and facilities that are physically located proximate to them, THAT is where the power physically comes from, regardless of what market deals are used to "own" the power.
The only new generation that can gain approval in California is fueled by nat. gas. Thus the very high heating bills last winter. The legislature is stocked with liberals.
It was a natural gas crunch that was a critical trigger of the power crisis. Hmmm, think that could happen again?
Also, someone needs to explain to California that burning natural gas creates carbon dioxide. Aren't they suing automobile manufacturers over this?
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