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13 Firms Bid to Finance Power Line Expansion

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From Bloomberg News

California, which has had six days of power blackouts this year, would expand its electricity transmission lines using $300 million in private investments, under a plan to be proposed by the federal government.

Energy Secretary Spencer Abraham will discuss the plan Monday, said Energy Department spokeswoman Jill Schroeder. The government said it received proposals from 13 companies last week to expand the so-called Path 15, 84 miles of power lines that connect Northern and Southern California. The lines can’t handle the load transmitted during peak demand.

Millions of Californians lost power during blackouts in January, March and May. The blackouts were called to prevent the state’s 32,000-mile power transmission system from failing when demand exceeded supply. During some blackouts, power in Southern California couldn’t be sent north because of a lack of line capacity, Schroeder said.

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Calpine Corp., Kinder Morgan Inc., PG&E; Corp. and Mirant Corp. are among power companies that expressed interest in the project, the government said. The Western Area Power Administration, a government agency that oversees the marketing of power from U.S. hydroelectric dams, will assess the proposals and submit recommendations to Abraham in mid-August.

The power lines have been candidates for expansion for at least a decade. Efforts to improve them are part of President Bush’s energy plan.

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