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Refineries Exempt From Blackouts

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From Bloomberg News

California oil refineries will be exempt from possible statewide power shutdowns because of health and safety issues, the state’s Public Utilities Commission decided Thursday.

The PUC voted 5-0 in favor of the exemption.

Gov. Gray Davis asked state regulators earlier this month to exempt refineries after companies such as Chevron Corp. said unexpected shutdowns would disrupt production.

The commission cited an Energy Department report that said about 27% of the state’s refining capacity would be lost if power were cut, and plants producing an additional 40% would see slowdowns.

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It would take a refinery up to two weeks to reach full production after an emergency shutdown, according to the report, released earlier this month.

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