Published Wednesday, December 20, 2000

Power jolt: 50% price hike forecast By Christopher Lopez TIMES STAFF WRITER

Thurman Langford, $180. The Silva household, $200. The Canterburys, $222.

Christmas bills?

You could say that, compliments of Pacific Gas & Electric.

Those numbers represent home energy bills for East Bay residents, and the figures will zoom higher as the winter progresses, even though temperatures outside are running just below normal.

The utility company predicted that December bills, on average, were going to increase by at least 50 percent over the same period last year because of the rise in cost of natural gas. So far, said PG&E spokeswoman Staci Homrig, that trend is holding true, and the company certainly is hearing about it.

PG&E is getting 1,000 calls a day from customers complaining about high energy bills, an 80 percent jump above what's normal for this time of year, said Homrig.

But the worst is still to come.

"We expect January prices to be even higher," Homrig said. "I would urge people to be prepared for that."

Leslie Silva is doing everything she can to control both heating costs and conserve power at her family's Clayton home. She has set the thermostat at 60 degrees and has her family wear sweaters if they're cold.

"Every time I see bills going up and the income doesn't go up, yeah, it concerns me," Silva said.

Langford has his house well insulated -- including double-pane windows. Still, the 86-year-old said his utility bills are higher than they've ever been at his 1,000-square-foot Pleasant Hill home.

"I really can't believe that the politicians got us into such a mess," said Langford, complaining about the energy shortage plaguing California under deregulation. "It's incredible. They really have some skills."

The U.S. Energy Department is estimating that natural gas prices will increase 40 percent this winter. As utility companies such as PG&E absorb those prices, ratepayers, in turn, will continue to see their bills go up.

"Gas prices have been high this year all across the country," Homrig said. "We knew gas prices would be high this year and into next year."

As a remedy for some, Gov. Gray Davis on Tuesday announced the availability of $7.1 million to help low-income families meet their energy costs. The money, part of a federal program, is targeted for families earning less than 60 percent of the state median income.

To qualify, a family of four can't have a gross income above $33,125, while for a family of three, $27,825 is the limit. For two-person families, the income guideline is $22,525 or less, and for individuals it is $17,225 or less.

On a related front, California suffered another Stage 2 power alert Tuesday, which is announced when power reserves fall below 5 percent. This time the culprit was a failed transmission line that transports power between Northern and Southern California.

To get enough power for the state for today, the California Independent System Operator invoked a federal order issued Thursday that requires power providers to sell energy to California to meet demand. It marked the first time state managers used the order from U.S. Energy Secretary Bill Richardson to increase the power supply in the state.

The combination of a dwindling supply of electricity in the north and limitations on making up for that with imports from the south have led to the possibility of rolling blackouts during the next couple of days in Northern California.

"If no megawatts are forthcoming due to this action, the outlook is likely we will be facing, in Northern California, rolling blackouts," said Kellan Fluckiger, the chief operating officer for the Independent System Operator.

California electricity industry officials reported progress Tuesday toward limiting price spikes and encouraging power plant construction. The Federal Energy Regulatory Commission scheduled the meeting in Washington among electricity generators, marketers, utilities and regulators to work out long-term power contracts.

Chief Administrative Law Judge Curtis Wagner, who is mediating the talks, expressed optimism that contracts of perhaps five or 10 years could be signed within days. Talks are to continue today in Washington.

Meanwhile, Richardson flew to Denver for a meeting today with Western governors. He plans to urge them to adopt a regional price cap on electricity.

Richardson said he wouldn't decide whether to extend his emergency power order, which expires Thursday, until after the contract talks and the Denver summit are over.

Still unknown is how the cost of producing power will affect ratepayers come summertime. PG&E is seeking approval from the PUC to hike electricity rates as much as 10 percent beginning in January.

Davis acknowledged Tuesday that he is involved in those discussions, and the PUC could take up the matter as early as Thursday when it meets in San Francisco.

Whether or not PG&E hikes rates -- and it's certain that at some point it will -- until rising energy bills affect the wallet, consumers will use the power and heat their homes as they see fit, said East Bay resident Jo Alice Canterbury.

"I can't say that I'm overly concerned, and I think it's a very American way of looking at things," she said. "We take things for granted. ... I think we can all cut back, but whether people are willing to do that, I don't know."

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-- Martin Thompson (mthom1927@aol.com), December 20, 2000