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Despite power surpluses, NW may face increasing electric prices

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DBoon Donating Member (1000+ posts) Send PM | Profile | Ignore Mon Jul-16-07 11:47 AM
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Despite power surpluses, NW may face increasing electric prices

July 13, Platts Energy Bulletin U.S. Northwest has enough power, but it may be costly:
NPCC study. While the Northwest U.S. has a surplus of 4,000 MW and is unlikely to face
shortages this summer or for the next five years, the price of electricity could be high, the
Northwest Power and Conservation Council (NPCC) said Thursday, July 12. The bulk of that
surplus −− about 3,000 MW −− is controlled by independent power producers that sell their
output into the wholesale market, where prices can be highly volatile and power is sold to the
highest bidder.
"The full amount may not always be available to Northwest utilities," the NPPC
study said, adding that for individual "utilities to have adequate power supplies, they must
secure some of the surplus or acquire their own resources." NPCC Chairperson Tom Karier said
the surplus "is good news, but it does not ensure that the region will avoid periods of high
prices, nor does it ensure that individual utilities have control over enough electricity through
contracts with power suppliers or from their own power plants to meet their customers' needs."
The NPCC's power plan calls for continuing aggressive efforts to develop energy conservation
and renewable resources.


Thanks to privatization, a regional electricity surplus now creates more expensive power.

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