Building a world of
resilient communities.

MAIN LIST

 

California: Large energy buyers find market dry

Shaken energy managers throughout Silicon Valley are finding cheap, long-term electricity deals a thing of the past as they go about trying to replace expiring energy contracts.

Wholesale electricity suppliers to large businesses are generally offering only short-term deals in the six-month range and those are pegged to the day-ahead market on electricity prices.

"There is no market out there," says Earl Bouse, an energy consultant for such large energy users.

More than 6,000 large businesses, including many of Silicon Valley's most prominent corporations, signed long-term contracts in the summer of 2001 when electricity prices collapsed. Rates were often at 50 percent of what Pacific Gas & Electric Co. could offer.

But now those contracts are expiring and large users are searching for options.

[...]

With some energy experts predicting a new energy crisis looming in 2006-07 when the state may be forced to close many of its older, air-polluting power plants, energy suppliers are reluctant to get tied down with long-term contracts. The state's goal of a 15 percent generation reserve also could tie up excess supplies in the coming years, which could keep prices higher later this decade.

This has left corporate energy directors scrambling to find new deals to ensure their companies have an adequate supply of energy on the private market.

More...
msnbc.msn.com/id/5139200/

What do you think? Leave a comment below.

Sign up for regular Resilience bulletins direct to your email.

Take action!  

Find out more about Community Resilience. See our COMMUNITIES page
Start your own projects. See our RESOURCES page.
Help build resilience. DONATE NOW.

 

This is a community site and the discussion is moderated. The rules in brief: no personal abuse and no climate denial. Complete Guidelines.


The Debacle at Doha

Sunday, April 17th was the designated moment. The world’s leading oil …

Is Peak Oil Dead and What Does it Mean for Climate Change?   

This session seeks to bring together fossil fuel experts and climate experts …

Peak Oil Review: A Midweek Update - Apr 28

 A midweek update. Oil prices continued to climb this week, capped …

San Francisco Becomes First Major City to Require Solar Panels on New Buildings

San Francisco is one step closer to its goal of transitioning to 100 percent …

The Outlook for Electric Vehicles  

Electric vehicles are all the rage right now, and hopes are high that we …

We Could Be Witnessing the Death of the Fossil Fuel Industry—Will It Take the Rest of the Economy Down With It?

It’s not looking good for the global fossil fuel industry. Although …

Gov. Cuomo Rejects the Constitution Pipeline, Huge Win for the Anti-Fracking Movement

In a win for climate activists and the anti-fracking movement, and a blow to …