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!  

Make connections via our GROUPS page.
Start your own projects. See our RESOURCES page.
Help build resilience. DONATE NOW.


World Oil Production at 3/31/2014-Where are We Headed?

The standard way to make forecasts of almost anything is to look at recent …

Peak oil notes - July 24

A midweek update. New York crude futures have traded in a narrow range …

Onshore Wind Power Is Now Cheapest Form Of New Electricity In Denmark

A new analysis from the government of Denmark found that wind power is by …

Keeping Oil Production From Falling

Production flows from a given oil field naturally decline over time, but we …

Oil Abundance? Not So Fast- A Risk Checklist

Understanding how we use oil and where it comes from provides many reasons …

Peak Oil Review - July 21

A weekly review including: Oil and the Global Economy, The Middle East & …

Australia Becomes First Nation to Repeal Carbon Tax

With Australia’s standing as the world’s highest per-capita …