Californias energy shortage hit a new low as rolling blackouts affected 200,000 to 500,000 customers in northern and central California. The planned, temporary blackouts were deliberately not in essential services areas, such as hospitals, but nonetheless affected major areas in San Francisco and Sacramento. This latest measure, said Jim Detmers, managing director of operations with the states power grid, was “the end of the road here as far as supply within California and out-of-state resources go,” Out-of-state power suppliers would not sell their surplus, he explained, because of the precarious financial state of Californias utilities.
As Californias two major power utilities, Southern California Edison and Pacific Gas & Electric, inch further into the hands of the state, a stopgap plan is underway. The state has made plans to purchase and resell electricity at cost to the utilities. Details of the plan are unclear, but early reports indicate the measure would last three to five years.
As anticipated, Southern California Edison defaulted on $600 million in payments, triggering the blackouts and prompting Gov. Gray Davis to declare a state of emergency. Pacific Gas & Electric faired slightly better in meeting its payments, but is not optimistic about future obligations.
Based in part on a report in The Los Angeles Times and The New York Times
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