Ever since the first discovery of gold in 1849 at Sutter's Mill, California has been growing exponentially. In no other sector has this been as apparent as in energy. In fact, the industry has experienced dramatic demand growth in just the last few years. Regrettably, it has become patently clear that the supply side is not keeping up with the demand.
Nowhere has this reality become more obvious than in Southern California, where the demand crunch has outpaced the rest of the State. According to the California Independent System Operator and the California Energy Commission (www.caiso.com, www.energy.ca.gov), that supply crunch could be as much as 1700 megawatts (enough energy to supply nearly 1.3 million homes) short in the very near future.
To this end, Idecided to start a blog and share my observations on key active regulatory and governmental actions that might either, sustain the status quo, get us closer to self sufficiency or further compound our problems in California and the West.
Bottom Line: California has never produced the electricity it needs to keep the lights on. We have historically relied on the rest of the West to feed our need. On average, we are buying anywhere from 20-30 percent of our electricity from the rest of the West and Canada (www.energy.ca.gov). So, it comes down to this – as Abraham Maslow would cal it – “…a hierarchy of basic needs…” – it’s the infrastructure, stupid. We need to build the energy infrastructure or all that we want and all that we need, will go away or not materialize. Without the energy infrastructure, all the other pillars of the California world-class economy will begin to fail.
Given my type "A" personality, I have decided to organize my comments into some of the major areas affecting energy today -- but don't be surprised if I comment on issues that may not immediately seem to impact energy -- since my view is that in reality, energy matters impact every aspect of our lives.
