Energy supplies appear positive this year

San Diego Business Journal, Feb 10, 2003

The California Energy Commission predicts electricity supply looks promising for the state this summer.

Supplies are expected to remain good through 2005, according to a press release from the California Energy Commission.

It's estimated the state will have a 9 percent operating reserve during the critical summer months of July, August and September, even without counting spot market imports that might be needed under extremely hot weather conditions.

Spot market purchases bring operating reserves to 15 percent during the hot summer months.

If Mother Nature behaves, California's energy situation will improve.

Cool weather increases the reserve margin to 16 percent, climbing to 20 percent with spot market buys.

The power market has improved significantly since the energy crisis of 2000.

Eighteen new power plants have been built, adding nearly 5,000 megawatts to the grid.

By August, another seven plants are set to come online.

California is not the only state building new plants. Supply has outpaced demand in the Southwest and Northwest during the past two years by about 8,000 megawatts.

A megawatt will power 1,000 California homes.