Fulfilling a US Energy Department mandate, California Gov. Gray Davis said the state will cut peak demand 5% or 1,600 Mw "within the week."
US Energy Sec. Bill Richardson included the conservation measure as a condition for extending an emergency order requiring electricity generators to continue providing power to California and set a Tuesday deadline. Under the order, the California Independent System Operator (ISO) must submit a progress report to the Energy Department by Tuesday. The reductions cannot include power saved during curtailments by interruptible load customers who agree to having their electricity cut off in exchange for lower rates.
Richardson initially ordered 75 generators and marketers in the West to sell surplus power for $64/Mw-hr to California, when the ISO declares an emergency. He issued the order after some generators declined to sell power for fear they wouldn't get paid by California's cash-strapped utilities.
Negotiations, meanwhile, are continuing among Gray, federal government representatives, and power industry executives on how to resolve the state's electricity crisis. The parties are attempting to craft a solution that includes buying power in the future under long-term contracts and resolving a cash flow crisis for Pacific Gas and Electric Co. and Southern California Edison Co. that has brought the two investor-owned utilities to the brink of bankruptcy.
In a statement, Gray said the conservation measures will reduce strain on the electric power grid and reduce the state power bill.
Provisions in the plan include:
�A reduction of energy use by the Department of Water Resources, one of the state's largest users of electricity. The agency will cut its peak load by at least 450 Mw-hr and up to 1,200 Mw-hr under certain conditions. The agency also will supply up to 150 Mw of power during peak load hours.
� Reductions at peak of 200 Mw in energy use by state government, including prisons, state office buildings, and the University of California and California State University system. The General Services department will shut down lights and heating and air conditioning systems at 5:30 p.m., reducing electrical consumption by 40% at peak. In addition, 50 Mw will be saved by continuing operations of state-controlled cogeneration plants and running existing emergency generators throughout the state during emergencies.
� Stepped up coordination with federal agencies with California facilities to coordinate emergency load reduction efforts by the University of California and California State University systems.
� A California Energy Commission-led effort to reduce peak load reductions by cities and counties by 300 Mw.
� A statewide public outreach campaign coordinated by the Consumer Affairs department and state departments to promote energy efficiency through newsletters, letters, web sites, and public forums. The state also will launch a publicity program with the California Science Center to reach its more than 1.3 million visitors, and conduct education campaigns with other museums and institutions.