Ten Potential Actions to Prepare for an Electricity Emergency

1. Require utilities to update outage plans to ensure that (a) the least possible number of customer black-outs in the event of an emergency; (b) essential services (hospitals, emergency dispatch, etc.) retain power and (c) any black-outs are fairly distributed among the State's affected population;

2. Authorize the California Public Utilities Commission working with the utilities to determine when to shut off electricity in a Stage 3 emergency;

3. Ensure that computer models used to predict and trigger black-outs and service interruptions are accurate and publicly certified so that black-outs and service interruptions do not occur unless no other option exists;

4. Call on the federal government and local governments to inventory emergency generation capability in California; institute preparedness plans to switch local and federal buildings to emergency generation to bring loads off the electric system in the a crisis;

5. Design gear-down plans (versus shut-down) to reduce unnecessary power use in all state facilities and request local and state facilities to do the same when electricity reserves drop below 5% -- such as turning off lobby lights; turning up air conditioning; turning off nonessential lights, equipment and technology;

6. Hook up commercial buildings, on a voluntary basis through the internet, to an emergency management control system to enable reductions in unnecessary commercial power use (turning off lobby lighting; turning up air conditioning; turning off nonessential lights, equipment and technology) when reserves drop below 5%;

7. Require utilities to identify large electricity users in each region and to develop with these customers a program voluntarily to shed nonessential load in emergencies;

8. Identify, prioritize and coordinate with state and regional agencies, private companies and utilities to obtain air emissions offsets and credits to run existing emergency generation;

9. Coordinate with utilities and municipal power agencies to identify and prioritize additional sources of emergency generation available for emergency use.

10. Inventory all state emergency generation; test it for readiness and prepare to switch state buildings to emergency generation to bring state loads off the electric system in a Stage 3 emergency;

Ten Actions to Consider or Act Upon to Prevent Current Electricity Problems From Spreading in 2001

1. Request that the Attorney General expand his investigation statewide and launch PUC/EOB investigation of market manipulation in wholesale electricity purchasing, scheduling and pricing, coordinating with the California Attorney General;

2. Create a California Energy Council, modeled on the National Security Council, to unify State action to resolve energy problems and to perform integrated energy planning;

3. Ask FERC for extended wholesale price cap authority to moderate California wholesale market pricing;

4. Ask FERC to recognize the defects in the California and western regional markets and find that no competitive market exists in California power markets;

5. Invest in an effective energy efficiency programs to reduce base load, including, assuring energy efficiency in all state buildings;

6. Invest in demand side management/load shifting programs to reduce peak loads;

7. Invest in renewable energy development that can be up and running for Summer 2001;

8. Eliminate potential conflicts of interest in ISO/PX stakeholder boards;

9. Improve California's ability to obtain ISO and generator data and enhance the State's enforcement capability for power plant maintenance; price manipulation and generation gaming, consistent with protection of proprietary business information;

10. Provide the EOB with effective enforcement ability and additional oversight authority for the ISO and PX.

Ten Issues to Consider or Act Upon Within the Next Six Months

1. Given that retail price caps might result in unintended consequences and further market disruption, it is essential to investigate the impacts of modifying those price caps. After establishing the facts, address feasibility of imposing transitional retail price caps in San Diego;

2. Evaluate additional price management tools for utilities, including bilateral contracts and hedging authority;

3. Revise and accelerate Title 24 building standards to reduce unnecessary energy use;

4. Streamline state power plant siting procedures; consistent with environmental requirements, and prioritize applications to advance clean, BACT+ power plant proposals.

5. Institute "use-it -or- lose-it" permitting power plant licensing and emissions credits rules to ensure power plants get built;

6. Invest in targeted transmission upgrades to add capacity and enhance system reliability by Summer 2001, especially in San Diego and San Francisco;

7. After establishing the facts, procedural options, and long-term consequences, address feasibility of extending the transition period and retail rate freeze throughout the State;

8. Reform PX pricing protocols and structures to lower wholesale and retail prices and reduce excess profits;

9. Evaluate utilities' role as providers of last resort;

10. Determine distribution generation standards and rules for small power generator connection to the electricity grid.