Features

February energy costs down to lowest to date

The Associated Press
Wednesday March 13, 2002

SACRAMENTO — The state of California spent $286 million to buy energy in February, the lowest monthly total since the Department of Water Resources started buying power on behalf of investor-owned utilities last year, the department announced Tuesday. 

DWR’s announcement comes a day after Attorney General Bill Lockyer sued four major energy companies of “gaming the market” by charging California millions for emergency generating capacity they never provided. 

Lockyer sued Dynegy Inc., Reliant Energy Inc., Mirant Corp. and Williams Energy Marketing and Trading Co. He is seeking more than $150 million in penalties. 

The state has a $10 billion power debt. 

DWR’s February costs were $40 million below January’s low of $326 million. 

It’s not just because February is a shorter month, said Steve Maviglio, spokesman for Gov. Gray Davis. 

In February, the state spent an average of $10 million a day, while it spent $61 million a day in February 2001 for a total of $1.726 billion. 

“Fortunately, we’ve been successful at increasing energy reliability as well as bringing prices under control, which was our main objective,” said DWR Deputy Director Pete Garris. 

During the energy crisis last summer, DWR spent $1.826 billion in May and $59 million per day. In July $761 billion was spent, averaging $25 million per day. 

Last month, Davis asked federal regulators to trim back the cost of long-term energy contracts the state scrambled to sign at the height of last year’s energy crisis. 

With the supply crunch seemingly passed and power prices plunging, Davis is asking the Federal Energy Regulatory Commission to reduce by $21 billion the cost of 20-year contracts signed when prices were high. 

——— 

On the Net: 

Department of Water Resources 

www.water.ca.gov