A report by the California Energy Commission says clogged transmission lines and aging power plants could create severe electricity shortages in Southern California as early as summer 2006 and Northern California could follow two years later.
The state's transmission system needs major repairs and upgrades; its fleet of aging power plants are on the brink of retirement and new plants aren't being built fast enough, The Associated Press reported. Also, Southern California's electricity use has grown 6 percent since last year — an increase three times higher than what was expected.
When reserves fall too low, operators for California's grid can order rolling blackouts and power to some areas in order to keep the rest of the grid stable.
To encourage conservation, the commission recommends rolling out "real-time" pricing so electricity users pay more for power when supplies are tightest. Commissioners also want state regulators to loosen restrictions on the one- to five-year contracts utilities have with independent generators. Streamlining the process for upgrading the transmission system is also recommended.
