Energy costs put crunch on California Christmas

By COLLEEN VALLES, Associated Press

SAN FRANCISCO (December 5, 2000 8:34 p.m. EST http://www.nandotimes.com) - 'Tis the season to be ... frugal.

With electricity and natural gas supplies in short supply, energy companies and state officials have asked Californians to delay turning on Christmas lights until well after nightfall and to keep thermostats set at 68 degrees.

Energy bills already are increasing dramatically, more than 50 percent in some cases. Pacific Gas and Electric Co. customers face an average bill of $77 this December. Last December, the average charge was $50, and PG&E said customers should expect much higher bills through the winter.

Utility officials said illuminating Christmas lights would be cheaper after 7 p.m. or 8 p.m. when electricity demand falls. The same advice goes for appliances, which are less expensive to use before 4 p.m. or after 7 p.m. Furnaces should be kept to 68 degrees maximum and turned back to 55 degrees when not at home, officials said.

The big jump in prices is partly due to decreasing natural gas supplies nationwide, said Claudia Chandler, assistant executive director of the California Energy Commission. Low natural gas prices over the past few years led to a decline in drilling and production. Supplies from new exploration won't be on line for at least two years, she said.

PG&E said that while prices are up dramatically, supplies of gas are not threatened because it has guaranteed contracts.

Electricity shortages are plaguing the state. On Monday and Tuesday, Stage Two emergencies were declared, meaning electricity reserves had fallen to 5 percent and suppliers were allowed to cut power to commercial customers with interruptible contracts.

Stage Three emergencies indicate electrical reserves have fallen below 1.5 percent, triggering imposition of rotating power outages in the entire system.

California never has had a statewide Stage Three emergency. But Monday's peak demand of more than 34,000 megawatts was close to the wintertime record, and supplies could get even tighter with colder weather forecast later in the week.

Los Angeles is not hooked to the California Independent System Operator, the state agency that runs electricity system for about 75 percent of the state, and has sufficient power for all uses, including holiday lighting.

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-- Martin Thompson (mthom1927@aol.com), December 06, 2000