RE: [cdn-nucl-l] Downside of electricity deregulation in Southern California

["Rouben, Ben" <roubenb@aecl.ca>]

Jerry:
	Probably.  But then, deregulation is the conventional wisdom we have
to suffer through.
Benjamin Rouben, FCNS
Manager, Reactor Core Physics Branch
Tel: 905-823-9060 ext. 4550
Fax: 905-822-0567
E-mail: roubenb@aecl.ca



> ----------
> From: 	Jerry Cuttler[SMTP:jerrycuttler@home.com]
> Sent: 	Monday July 24, 2000 8:12 PM
> To: 	cdn-nucl-l; Morgan Brown; Jeremy Whitlock; Jaroslav Franta; Lloyd,
> Marilyn
> Subject: 	[cdn-nucl-l] Downside of electricity deregulation in
> Southern California
> 
> Are we in for the same fun?
>  
> J
>  
> ----- Original Message ----- 
> From: marc832@primenet.com 
> To: Multiple recipients of list ans-pie 
> Sent: Saturday, July 22, 2000 8:03 PM
> Subject: The Energy Looking Glass 2000july20 -- sdg&e letter
> 
> ANS-PIE    While I was vacationing for a month, the electricity regulation
> pot boiled over here in lower Southern California. . BRIEFLY   
> 
> 1. San Diego Gas & Electric fulfilled the requirements some months ago for
> full de-regulation -- the first company in the nation to do so. All SDG&E
> - owned generators were sold.
> 
> 2. This required SDG&E to purchase all their electricity on the open
> market. In the winter they could purchase electricity for 3.3 cents/kwhr,
> but beginning with the summer heat waves May2000 this became 9.2
> cents/kwhr.
> 
> 3. This hit the front pages, especially after SDG&E's parent (Sempra
> Energy) reported better earnings from the sale of their electricity
> operations.
> 
> 4. Part of the problem is SDG&E was not buying as much under longterm
> contracts as is needed.
> 
> More to follow --IS ANYONE INTERESTED ?????  REgards Gene Cramer
> ..................................................
> To Customers of San Diego Gas & Electric Company                        20
> July 2000
> 
> This week, we convened an emergency summit of energy market participants
> to explore immediate market-based solutions to the high energy prices we
> are paying. Like you, we are extremely concerned about this situation and
> are working with state regulators, energy suppliers and retailers to
> identify near- and long-term solutions to the rising energy costs we all
> are experiencing.
> 
> In California's newly created competitive energy marketplace, San Diego
> Gas & Electric's role is as the delivery service provider. We no longer
> generate or price electricity: We are required to purchase it through the
> California Power Exchange and pass the cost on to our customers, with no
> mark-up. The price of power is now a function of supply and demand in the
> open market. Over the last several weeks, SDG&E customers have seen their
> electric bills rise sharply due to the significant increase in power
> demand in California and surrounding states.
> 
> All of our residential customers can soften the impact of their higher
> summer electric bills by taking advantage of our Level Pay plan. Under the
> plan, this summer's bills will be averaged out over the year and will be
> roughly the same as last year's. For our low-income customers, a number of
> direct-assistance programs are available to help them pay their bills,
> including a new special summer assistance fund, partially funded by SDG&E
> and our parent company, Sempra Energy.
> 
> We also encourage all of our customers to reduce their energy consumption
> and we have several programs in place to help. This contributes to lower
> costs, as well as a healthier energy market and environment in California.
> 
> Beginning next month, most of our customers will be receiving a check -
> about $260 for the typical resident - due to SDG&E's ability to make a
> quick transition under the state's electric industry restructuring plan.
> This will help lessen the burden of current high energy prices.
> 
> While these short-term measures will provide our customers with some
> relief, we will continue addressing the long-term issues, including the
> need for new generation and transmission facilities in the state to
> increase the energy supply here.
> 
> We thank you for your patience and understanding. If you have any
> questions about your SDG&E bill or the programs discussed here, please
> call our 24-hour-a-day, toll-free customer service line, 1-800-411-SDGE
> (7343).
> 
> SincereIv.      Edwin A. Guiles  President
> San Diego Gas & Electric
> 
> Regards     marc832@primenet.com  whois  Gene  Cramer 
>