The Facts Are In: Electricity Demand in California Was Lower in Four of Past Six Months Than in 1999

Data Casts Doubt on Power Producers' Claims

That Demand Has Fueled Higher Prices



WASHINGTON - January 19 - Power demand during four of the past six months in California was lower than during the same period in 1999, indicating that California's power producers are misrepresenting the facts about energy demand to justify gouging the state's utilities, Public Citizen has concluded.



Public Citizen analyzed system hourly load data compiled by the California Independent System Operator (CAISO). CAISO uses this data to find out how much energy must come from various plants to meet California demand and records the highest amounts of demand by hour within the state of California. The data shows that while demand did soar in May, in four out of the past six months -- July, August, October and December -- California saw a lower peak demand than during the same months in 1999.

"The facts are in, and they prove that power producers have been misrepresenting the energy crisis as caused by increased consumer demand," said Wenonah Hauter, director of Public Citizen's Critical Mass Energy and Environment Program. "Power producers want Californians to believe that consumers need to pay higher rates to encourage the construction of new power plants to meet the alleged higher demand. Our analysis reveals their ploy to soak consumers."

With no increase in energy demand, a major contributor to the current crisis is that plants servicing California with 11,000 megawatts of capacity have been taken out of service for a variety of reasons, most undisclosed.

Now, power producers are inappropriately citing increased demand to justify building new plants, and they are hoping to speed the process by suspending California's environment-friendly standards and blocking the ability of communities to oppose new plants.

"The fact that demand in California is on par with previous years highlights power producers' attempts to circumvent environmental rules and local input on energy policy," Hauter said.

While power producers acknowledge that many other factors are affecting prices, including demand in the entire western U.S., they have focused on California energy demand when justifying their high prices.

###

They are coming home to roost.

(But I don't really think you're stupid -- its a catch phrase, that's all.)

Seriously though: How can you look at 6 months from one year and say -- oh, there's no increased demand for four of those months -- therefore WE DON'T NEED NEW POWER PLANTS??

Look, instead, at the increased demand since the last power plant was built in Cali -- 1981 for crying out loud! I think those numbers will lead you to a different conclusion regarding the need to build more plants.

Here on the East Coast, we've figured something out: if you want things that run on power to work -- you have to have power. So, for every building you build with an airconditioner, you have to plan on getting more power from somewhere. Every Starbucks, every factory, every dotcom office building, etc.

Its a little like making omelets. You don't want omelets, that's fine. You want an omelet -- guess what. And you know what -- people like, even need, omelets!

You create a regulatory environment where you can't make a dime building and running a power plant and guess what happens eventually. Well, you know, because there you sit in the dark.

You ever try building and running a power plant? Its not really very easy. Its tough to find someone to do it for free. Be my guest and try.

Sometimes I wonder if California's whether sucked (like ours does),whether anyone would live there at all. You would know better than me. What do you think?