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California in Crisis

© Erica Myers-Russo

The Golden State is facing rolling blackouts, and it ain't pretty. California Governor Gray Davis has had meetings with everyone from Energy Secretary Bill Richards to - here's the embarrassing part - his peers, the governors of Oregon and Washington. Why? To see, among other things, if those states can be convinced to sell their surplus (using the word loosely) electricity.

Why is California feeling the crunch? Well for starters, they recently deregulated their utilities. The deregulation, which became official in 1998, has left the state a bit short on providers. Several new power companies won't be ready to come online until 2002. But though some politicians and even consumer advocacy groups might have you believe otherwise, that's not the whole story. While the deregulation is certainly a factor in their current energy crisis, back in May 2000 the California Independent System Operator (a non-profit group established by the state legislature to oversee the restructuring) reported that - if weather conditions remained normal - the power grid was well-equipped to supply the state's electricity needs and maintain a 7% operating reserve, as well. They also predicted that if 2000 brought a hotter than usual summer, the forecasted peak usage would outstrip available reserves.

What nobody counted on, however, was a hot summer plus a drought followed by a frigid winter and subnormal snowfall. The quadruple whammy ensured that hydroelectric plants fell short of their forecasted output at the same time that air-conditioners demanded overtime. Then right about when things should have been slowing down and the utility companies would have had a chance to catch their collective breaths, the mercury dropped, heating demands climbed, and there was no snow pack to melt to fuel those same hydroelectric plants. .

California utilities are claiming they may need to declare bankruptcy; the state's neighbors (themselves energy-strapped) are balking at the idea of sharing their power, and California consumers are convinced that deregulation doesn't work. .

It is an absolute mess, alright. And one of the most significant facts has been lost in the mayhem: California has consistently led the nation in energy conservation and alternative energy development. California developed standards for energy-efficient appliances, and then the federal government adopted them. Their incentive programs such as rebates for energy-efficient home purchase and grants to fund the purchase of self-sufficient energy sources (such as generators and solar cells) are models for other states. And their alternative energy R&D is at the forefront of any in the country. .