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Electric utilities

California Declares Stage Two Emergency Amidst Natural Gas Shortfall and Icy Temperatures

Strategic Insights

— 1 min read

Extreme cold temperatures in the Western United States and Northwestern states have led to a severe shortage of natural gas, which is affecting the state's transmission system. The California Independent System Operator (Cal-ISO) has declared a Stage Two Emergency, triggering the reduction of power demand and calling for voluntary load management programs. The crisis is a result of a combination of factors, including increased heating demands, natural gas shortages, and congestion on California's transmission lines.

Key Takeaways:

  • A Stage Two Emergency is declared when operating reserves dip below five percent or are expected to within the next two hours, prompting the Cal-ISO to ask utilities to implement load management programs.
  • The voluntary programs rely on commercial and industrial customers who receive discounted electricity rates to curtail their electricity use and lower the state's demand for power.
  • The Cal-ISO's Electrical Emergency Plan (EEP) is part of the state's enhanced reliability standards created by landmark legislation Assembly Bill 1890, which restructured California's electricity industry.
  • A Stage One Emergency is initiated when operating reserves fall below seven percent, advising the public of potential power shortages and asking all customers to conserve electricity.
  • The Cal-ISO is chartered by the state to manage the flow of electricity along the long-distance, high-voltage power lines, with a mission to safeguard the reliable delivery of electricity and ensure equal access to the state's "electron highway."

Statistics:

  • The Cal-ISO is the second-largest control area in the U.S. and the fifth largest in the world.
  • The state's transmission system spans 124,000 miles, accounting for three-quarters of the state.
  • The Cal-ISO's computerized control center is located in Folsom, 22 miles from the capital city of Sacramento.
  • The crisis is affecting Northern California, Pacific Gas & Electric's (PG&E) service area, with only commercial and industrial customers affected so far.

Sources:

  • Business Wire, "California Independent System Operator Declares Stage Two Emergency Amidst Natural Gas Shortfall and Icy Temperatures" (December 21, 1998)

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