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.


Carbon Tracker Analysis: ‘Renewables are Already Outcompeting Fossil Fuels’

Clean technologies are already cheaper, on average, than the incumbent …

Timeline: The Past, Present and Future of Germany’s Energiewende

The Energiewende (energy transition) is an internationally recognised …

The Sower's Way: the Path for the Future

Our paper on "The Sower's Way" has been published in the IOP …

Just 16,000 Catenary Trucks Would Use All of California’s Electricity with only 2400 to 8300 Miles of Overhead Wires

It makes sense to electrify trucks since fuel from oil, coal, and natural …

The Energy-Water Nexus  

Energy and water are inextricably linked: It takes energy to supply water, …

Peak Oil Review - Sept 19 2016

 A weekly roundup of peak oil news, including: -Quote of the week …

Naomi Klein & the Let­down of the Leap Manifesto: Energy Depletion Dismissal is Just as Bad as Climate Change Denial (part 1/3)

Climate change denial is often decried for its destructiveness. But energy …