Spain risks California-style power crisis

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Spain risks California-style power crisis -Fenosa Updated 3:44 PM ET May 3, 2001

MADRID (Reuters) - The head of Spain's No. 3 power utility Union Fenosa warned on Thursday that the country risked a power crisis similar to California's blackout if the government does not introduce a new regulatory framework. "A new regulatory framework is needed to avoid situations like California's," Jose Maria Amusategui told reporters.

He said investment in Spanish power generation had been too slow in recent years although talks with the government over tariff restructuring were making progress.

Spain's government continues to regulate power tariffs but plans to fully liberalize the sector by 2003.

Analysts have said Spain runs the risk of a California-style power crisis within a few years because of limits on generating capacity imposed by the government. But government officials have denied there is a threat of power shortages.

Amusategui also said Fenosa would study assets due to be sold by Spain's dominant power company Endesa, which represent 2,610 megawatts of installed capacity and distribution capacity equivalent to up to 600,000 clients.

However, Fenosa was less interested in the assets than before the collapse of Endesa's planned merger with No. 2 utility Iberdrola, which would have have left Fenosa as Spain's second biggest utility, Amusategui said.

http://news.excite.com/news/r/010503/15/utilities-spain-fenosa?printstory=1

-- Martin Thompson (mthom1927@aol.com), May 05, 2001

Answers

Analysts have said Spain runs the risk of a California-style power crisis within a few years because of limits on generating capacity imposed by the government. But government officials have denied there is a threat of power shortages.

Hmmm, notice that Y2k was not even mentioned? It's capacity kids, capacity! It's time to pay the piper, we've lived on borrowed time for too long. With NIMBY (not in my backyard) running rampent in America, the issue will get worse before it gets better. Learn this and you will all join the real world of the get its!

-- Rob McCarthy (celtic64@mindspring.com), May 06, 2001.


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