-Caveat Lector-

Electric Scam Exposed - Demand lower in 4 of  past 6 months than in 1999

FOR IMMEDIATE RELEASE
JANUARY 19, 2001
10:59 AM
CONTACT:  Public Citizen
Angela Bradbery (202) 588-7742 or (202) 588-7741

The Facts Are In: Electricity Demand in California Was Lower
  in Four of Past Six Months Than in 1999

Data Casts Doubt on Power Producers' Claims
That Demand Has Fueled Higher Prices

WASHINGTON
- January 19 - Power demand during four of the past six months in
California was lower than during the same period in 1999, indicating
that California's power producers are misrepresenting the facts
about energy demand to justify gouging the state's utilities, Public
Citizen has concluded.

Public Citizen analyzed system hourly load data compiled by the
California Independent System Operator (CAISO). CAISO uses this
data to find out how much energy must come from various plants to
meet California demand and records the highest amounts of
demand by hour within the state of California.  The data shows that
while demand did soar in May, in four out of the past six months --
July, August, October and December -- California saw a
  lower peak demand than during the same months in 1999.
"The facts are in, and they prove that power producers have been
misrepresenting the energy crisis as caused by increased consumer demand,"
said Wenonah Hauter, director of Public Citizen's Critical Mass Energy and
Enviro
nment Program. "Power producers want Californians to believe that consumers
need to pay higher rates to encourage the construction of new power plants
to meet the alleged higher demand. Our analysis reveals their ploy to
soak consumers."
With no increase in energy demand, a major contributor to the
current crisis is that plants servicing California with 11,000
megawatts of capacity have been taken out of service for a variety
of reasons, most undisclosed.
Now, power producers are inappropriately citing increased demand
to justify building new plants, and they are hoping to speed the
process by suspending California's environment-friendly standards
and blocking the ability of communities to oppose new plants.
"The fact that demand in California is on par with previous years
highlights power producers' attempts to circumvent environmental
rules and local input on energy policy," Hauter said.
While power producers acknowledge that many other factors are
affecting prices, including demand in the entire western U.S., they
have focused on California energy demand when justifying their high
prices.

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