Energy Crisis Take Two?

Demand for electricity in California is increasing at a faster-than-expected clip, but the power plants commissioned after the Energy Crisis of 2001 are not coming along so swiftly. Together, these two factors could spell trouble later this summer:

While some plants have opened since 2001, and several more are under construction, 13 plants have been put on hold or canceled for lack of investment.

"We need to see some certainty in the market," said spokesman Bill Highlander of Calpine Corp., the San Jose-based power plant developer. He said lack of financing prompted Calpine to put in limbo about 3,600 megawatts worth of proposed new plants. A megawatt is enough power to supply about 750 homes.

Demand is a problem, too, as usage has surpassed expectations.

Instead of the predicted 3.5 percent to 4 percent increase in consumption this year, usage is growing at 6 percent, said ISO spokeswoman Stephanie McCorkle. That's largely a function of population growth and an improving economy, while triple-digit temperatures are causing spikes in demand.

"You really can't test how much electricity demand is out there until you hit a heat wave, and this is our first real heat wave of the summer," said McCorkle. "The appetite for electricity has grown enormously over the past year."

Meanwhile, Detmers said California is burning through "an extensive amount of hydroelectric power." And energy shortages in cities like Phoenix are reducing the amount of imported power available to California, he said.

Experts say the situation will get iffier the next two years as demand mushrooms.

All the more reason we need to start building those LNG Ports!