California refinery exposed to power blackouts

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Tuesday May 8, 3:40 pm Eastern Time

Valero says Calif plant exposed to power blackouts

NEW YORK, May 8 (Reuters) - Refiner Valero Energy Corp. (NYSE:VLO - news) says it is worried that electricity blackouts in California could force it to halt operations at its Benicia refinery, which is no longer protected from power stoppages, a company official said on Tuesday.

``The Benicia plant has been rolled into a rolling blackout pool by the Public Utilities Commission which puts us in an uncomfortable position,'' said Valero official Rich Marcogliese.

Californians on Tuesday braced for a second consecutive day of power emergencies amid warnings of soaring temperatures and tight electricity supplies, California's Independent System Operator said.

The 165,000 barrel per day Benicia plant near San Francisco, which provides more than 10 percent of California's refined product needs, was put in the pool of facilities vulnerable to power blackouts in early April, Marcogliese said.

The plant, which has no back-up power generating capacity, was not affected by Monday's power emergency and had received no notice that it would be cut off on Tuesday, he added.

California fuel supplies are already running thin after an explosion at Tosco Corp.'s (NYSE:TOS - news) Carson plant near Los Angeles last month.

``What is particularly worrying is that if there is a power loss to the refinery and we have to shut down units then it will take us several days to restart them,'' Marcogliese said.

``If there is any damage to equipment then that could take several weeks to restart.''

Valero has written to the Public Utilities Commission voicing its concern over the possible stoppages, saying that a loss of fuel is a public safety issue, he added.

-- (in@energy.news), May 09, 2001

Answers



-- Screw the Planet (screw@california.com), May 09, 2001.

There's a misconception here that needs to be cleared up. Bush is not the cause of California's power shortage; that shortage is caused by the fact that California consumes more power than it generates. California would still be having rolling blackouts this summer even if Gore had been the one to take office in January.

Whether or not Bush should push for a rate cap on the price of electricity California has to buy from out of state is a different issue.

-- California needs to (generate@more.electricity), May 09, 2001.


"The plant, which has no back-up power generating capacity,"

This is a perfect example of HOW NOT TO PLAN. Several days to restart from a power failure?? Several weeks for equipment failure??

California seems to be fairly adept at digging it's own grave.....

Deano

-- Deano (deano@luvthebeach.com), May 09, 2001.


Repeat 25 times

I will not be a

Stooge!

I will get the facts first and avoid spreading the manure of the Profiteers for free.

-- (goget@clue.net), May 09, 2001.


Bail out Watch #39 - May 08, 2001

Oink. Governor Davis will meet this Wednesday with representatives of some of the most gluttonous corporations in America. (The Gov. had invited execs of the energy companies that have been gouging California, but it seems that many of the head honchos have not-so- graciously declined, sending underlings instead.) Like pigs at the trough, the energy companies are rolling in profits (see BW#34, 36) while taxpayers pay $50 million or more a day. Energy executives have been among the chief beneficiaries. The OC Register tracked down the stats, and the numbers are worth repeating:

Enron. Its chairman (and chief energy advisor to the Prez, no matter what Spencer Abraham wants to believe) Kenneth Lay took in $141.6 million in salary, bonuses and stock in 2000. CEO Jeffrey Skilling went home with $72.6 million.

Calpine. $23.9 million for Pete Cartwright. The lone Californian in the pen - got a 624% increase.

AES. Its boss, Dennis Bakke, got robbed at $12.8 million in compensation last year (though it was up 546 percent from 1999).

Williams Company. Keith Bailey (who "might be the man who saves our future" according to one columnist) raked in $7.05 million last year, just about what his company paid to settle a FERC action against Williams for a bit of energy market manipulation.

-- (goget@clue.net), May 09, 2001.



An update to this story.

http://www.kfwb.com/news/local/l061402.html

Refineries May Be Exempt From Blackouts

(KFWB) -- A member of the state's Public Utilities Commission has issued a draft decision that would exempt oil refineries from blackouts, to curb the potential that gas prices in the state could skyrocket. The full PUC will consider the issue on June 28. Meanwhile, a judge ordered energy companies and state regulators to provide more information about fuel production, so that the PUC can make more decisions on exemptions.

Governor Gray Davis asked the PUC to find a way to minimize disruption of fuel production this summer. A rolling blackout could set back refineries up to a week, causing gas shortages and higher prices at the pump.

Four refiners have asked for exemptions. Combined, they produce about one-fourth of the state's 2.3 million barrels a day.

Chevron petitioned the governor separately, saying it would be forced to reduce production unless granted blackout exemptions. The company accounts for about 18 percent of the state's refining capacity.

Davis has supported blackout exemptions from the oil industry.

6.14.01, 7:00a

-- (in@energy.news), June 14, 2001.


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