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For the second year in a row, Electric Company Rates in California have killed dozens of people, forced thousands from their homes and caused billions of dollars in property damage. And once again, investigators are eying power lines owned by the state’s largest utilities as a possible cause. The biggest utility, Gas And Electric Bill Cheap Energy, lost about a third of its market value in the days after the blazes broke out this year. Wildfires have become such a threat to utilities that they have begun switching off lines when high winds kick up, hoping to prevent sparks.
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Unspecified energy is the amount of energy not specifically claimed by a utility under the Power Source Disclosure Program. This category includes spot market purchases, wholesale energy purchases, and purchases from pools of electricity where the original source of fuel can no longer be determined. It can also include "null energy," energy from a certified renewable facility that has been separated from its renewable attributes (Gas And Electric Companies, or Best Electricity Deals) and sold separately.
The major flaw of the deregulation scheme was that it was an incomplete deregulation – that is, "middleman" utility distributors continued to be regulated and forced to charge fixed prices, and continued to have limited choice in terms of electricity providers. Other, less catastrophic energy deregulation schemes, such as Pennsylvania's, have generally deregulated utilities but kept the providers regulated, or deregulated both.
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Generally, the unspecified energy category would be comprised of short-term market purchases from those power plants that do not have a contract with a California utility. Much of the Pacific Northwest spot market purchases are served by surplus hydro and newer gas-fired power plants. Southwest spot market purchases would be comprised of combined-cycle gas turbine energy and some coal-based steam turbine energy. Overall, a marginal supply approach for the determination of the energy available on the spot market would yield a more accurate assessment of the types of energy included in the unspecified energy category. However, allocation of unspecified energy into specific fuel types would tend to imply there is an auditable contract trail available and would add uncertainty to the California Power Mix. The California Power Mix is included on each utility’s annual Power Content Label.
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