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Hot Weather Increases Blackout Threat

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TIMES STAFF WRITER

California barely avoided blackouts Thursday as hot weather pushed power consumption higher than expected and power plants capable of supplying 10,000 megawatts--enough power to serve 7.5 million homes--shut down for maintenance and repairs.

At the same time, a statewide advocacy group launched a campaign to persuade Californians that the best way to avoid power outages is to shift to alternative energy sources, rather than build power plants that pollute.

At 2:30 p.m. the California Independent System Operator, which manages most of the state’s transmission grid, warned of possible rotating blackouts within an hour. But Cal-ISO later rescinded the warning when it found sufficient last-minute supplies.

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Thursday was the second day that a federal order aimed at stabilizing California’s power markets took effect.

Cal-ISO grid operators and the state’s power buyers said it was too soon to say how the order will affect prices and supply or whether the order exacerbated the state’s power shortfall Thursday.

“We just don’t know if they’re related,” said Oscar Hidalgo, spokesman for the state Department of Water Resources.

The department began using taxpayer money to buy power for 24 million Californians in January, after high wholesale power prices financially crippled the state’s two biggest utilities.

In the past, Cal-ISO has paid extraordinary prices for such last-minute emergency power, as high as $1,900 per megawatt-hour. But under the order by the Federal Energy Regulatory Commission, which was issued April 26 and took effect Tuesday, Cal-ISO can pay in-state power plant owners no more than a price set daily based on the price of natural gas and the cost to run the most inefficient power plant selling that day to Cal-ISO.

That price limit kicks in when the state’s power reserves are so low that Cal-ISO declares an official emergency. Such emergencies were declared Wednesday and Thursday.

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As part of its so-called price mitigation plan, the federal commission said it would grant limited wholesale cost relief, so long as the state presented its position today on the creation of a Western region electricity transmission organization.

But rather than agree to join with other states, Cal-ISO, which is controlled by appointees of Gov. Gray Davis, will submit a plan proposing that California retain control of its grid, administration sources said on the condition that they not be identified.

Southern California Edison and San Diego Gas & Electric are agreeing with the state’s position. However, Pacific Gas & Electric, the state’s largest utility, will be submitting papers indicating that it would agree to the concept of a Western regional transmission organization.

Meanwhile, in another attempt to ease the state’s energy crisis, the California Public Interest Research Group on Thursday began knocking on doors to promote greater use of solar, wind and geothermal power.

CalPIRG plans to reach 250,000 Californians and raise $500,000 in its Clean Energy Solutions Campaign, going door to door this summer and talking to residents about energy conservation.

President Bush and Gov. Gray Davis have released energy plans that rely heavily on building power plants and relaxing clean air standards, said Kathleen Barr, director of CalPIRG’s campaign in Los Angeles.

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“In contrast to the Bush and Davis plans, CalPIRG research has shown that much of California’s energy needs could be met by fully taking advantage of California’s solar, wind and geothermal power,” Barr said.

Bush’s policy calls for more oil and gas drilling, expanded use of nuclear power and 1,300 new power plants over the next 20 years.

Davis has accelerated the schedule for approving new power plants, lifted pollution restrictions and is considering changes that would allow emergency diesel generators--among the dirtiest energy sources--to run more often to prevent rolling blackouts.

But Davis spokesman Steve Maviglio said the governor also is working to reduce the state’s dependence on fossil fuels.

He recently signed legislation authorizing more than $800 million in conservation incentives, Maviglio said, adding that California has the nation’s most lucrative benefits for installing solar and wind systems.

CalPIRG’s efforts “are in sync exactly with what the governor’s doing,” Maviglio said.

One goal of CalPIRG’s campaign is to generate support for state legislation that would require energy providers to get 20% of California’s power from renewable sources by 2010. Those sources currently generate about 10% of the state’s electricity.

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Times staff writers Edward J. Boyer in Los Angeles, Dan Morain in Sacramento and the Associated Press contributed to this story.

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