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Power crisis grips the west

The headlines have been pervasive: “Rolling Blackouts Jolt Californians;” “Power Grid Threatened In The West;” “Utilities Seek Rate Hikes.”

Little more than a year ago, the hubbub around system reliability centered on the chance of utilities experiencing difficulties related to the transition to the Year 2000. The fear was that when the midnight hour struck on December 31, 1999, the entire electrical grid would collapse as the result of computer malfunctions embedded in the system.

How ironic that, today, a more pervasive threat to energy supply would occur--not as a result of Y2K--but as an undesirable effect of the deregulation of the electric utility industry.

In short, energy demand has outstripped supply in the West and in particular in California, the sixth largest economy in the world, and the tenth largest user of electricity in the world.

Generating resources throughout the West have not kept up with increased demand. In terms of power supply, there appears to be a fundamental shortage. California is in an emergency situation, and it appears there are few plants that are not operating.

What’s more, low water conditions and high natural gas prices in the Northwest have led to rising costs that place significant financial pressure on utilities. The Northwest is experiencing an escalation in power prices similar to that in California. Utilities also have been burdened by below-average water years that have reduced the output of hydroelectric projects. This has forced many utilities to the spot market for more of their power needs when market prices were reaching record highs.

The term you’ve heard in the popular press is “the energy crisis.” So where is it all leading? How bad is it going to get before it gets better?

With California regularly experiencing the threat of blackouts, the concern focuses on “what can we do to help alleviate the effects of this crisis?”

Certainly, energy conservation will be a key component in any energy planning strategy. At Eugene Water & Electric Board, conservation historically has been the resource of choice. Since 1977, conservation has been a focal point at EWEB, allowing us to save 38 average megawatts a year.

In light of recent events, conservation has become even more important. EWEB’s financial analysts point out that if the utility raises rates by one percent, that will net an additional $1 million. However, if we reduce our load by one percent, we save $5 million in purchased power costs. So conservation is key to surviving the energy crisis.

How can you help? Call EWEB Energy Management Services. Learn about many more ways you can save energy by calling 484-1125, or click here for more conservation tips at work.