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For Immediate Release: November 4, 2004
Media Contact: Rob Schlichting - 916-654-4989

Energy Commission Report Outlines
Steps to Prevent Electricity Crisis


Sacramento - At its latest Business Meeting, the California Energy Commission has approved a report that identifies concerns and recommends actions to avoid an electricity crisis that could impact the state as soon as summer 2005.

By a unanimous vote, Energy Commissioners agreed to send the Integrated Energy Policy Report 2004 Update to the Governor and Legislature. The Update provides an in-depth analysis on electricity-related issues identified in the Commission's 2003 Energy Report.

The 2004 Update probes potential electricity supply impacts resulting from possible retirements in the state's aging fleet of power plants. It identifies transmission bottlenecks and the lack of long-term transmission planning, which currently limits the state's ability to move electrons between the North and South. It also evaluates the feasibility of expediting new, renewable energy sources to meet California's growing electricity demand and check the state's growing dependence on natural gas as a fuel source for generation.

Hotter-than-normal weather could jeopardize electricity supplies for some Southern California areas as early as summer 2005. It is imperative that state government works with the utilities to accelerate peak demand reduction programs through advanced meters and price responsive tariffs as well as, increase supply sources.

"This report points out our vulnerability in Southern California next summer and provides an early warning for steps needed to manage the problem," stated Chairman Keese. "I commend Commissioners Geesman and Boyd for their guidance in examining the issues surrounding our electricity supply systems vulnerability and to propose possible solutions to help us avoid problems that could occur as early as next summer."

The Integrated Energy Policy Report 2004 Update can be downloaded from the California Energy Commission's web site at

www.energy.ca.gov/2004_policy_update/documents/index.html

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