California Grid Operators Declare Stage 3 Alert
Severe Cold, Gas Prices Contributed To Crisis
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A Stage 3 alert in the energy-starved state means that California's electricity reserves have fallen below 1.5 percent and rolling blackouts are a possibility.
Last week, a Stage 3 alert was called when the biggest storm to hit the state in three years cut electricity generation at a key nuclear plant.
The storm Thursday came as other electric generating stations shut down for maintenance which, coupled with the crippled nuclear plant, cut the state's power output by one-third. The alert was dropped back to Stage 2 on Friday, when more power became available from other states.
The new Stage 3 alert was expected to be in effect all day.
Patrick Dorinson, spokesman for the Independent System Operator, which runs the state's power grid, said a shortage of natural gas is forcing many power plants in Southern California to switch to oil. Power producing problems are possible and could worsen the power shortage, he said.
State and federal lawmakers are trying to craft a temporary solution to California's power crisis. Officials met this past weekend with electricity wholesalers to negotiate a plan by California Gov. Gray Davis for the state to buy electricity and sell it to utilities. That plan was to be introduced Tuesday in the Legislature.
The state believes it can negotiate better prices than the utilities, which have seen their credit ratings plummet in recent months. Southern California Edison and Pacific Gas & Electric say they have lost more than $9 billion because of wholesale price increases and the state's 1996 deregulation law that froze rate hikes.
Amid all the other problems, a major electricity supplier on Monday threatened to take the state's two largest utility companies to bankruptcy court.
If PG&E and SoCal Edison do not make payments due this week, officials from Houston-based Dynegy Inc. said they would have no choice but to take them to court.
