Date: May 3, 2001
To: Board of Supervisors
Subject: Protecting San Diego's Economic Base with a Voluntary Power
Demand Reduction Program
Summary:
Faced with a summer of sudden and frequent power interruptions, San
Diego businesses are addressing a litany of potentially devastating
challenges. Employers cannot guarantee employee safety during rolling
blackouts. The threat of equipment damage increases when power is
curtailed without warning. Production costs, already rising throughout
the region because of higher electricity bills, will undoubtedly
increase to compensate for idle hours. Already, these challenges are
being reflected in the rising costs of local goods and services.
Today's action seeks to shelter our region's economy from the summer
power crunch by devising a voluntary demand reduction plan for the
region's largest power consumers.
Energy is often described as the lifeblood of business. Similarly,
business is indeed the lifeblood of the San Diego economy. The health
of our economy is of critical concern during California's unprecedented
power crisis and the County must explore any and all options to minimize
power interruptions to the region's largest employers.
RECOMMENDATION:
SUPERVISOR JACOB:
1. Direct the Chief Administrative Officer to work with the Coalition for Energy Independence and San Diego Gas and Electric to develop a draft voluntary demand reduction program, to include staggered production schedules, for the region's largest energy consumers. Report back to the board in 45 days.
Fiscal Impact:
These actions can be performed within the existing budget.
Background:
Prior to the passage of the state's deregulation legislation in 1996,
adequate power supply to San Diego businesses was largely taken for
granted. By all accounts, state and federal energy regulators were able
to ensure that electricity was both available and affordable.
Currently however, San Diego businesses are struggling to withstand the
state's worst power crisis in history. Light rainfall, tight power
supply, the high price of natural gas and unscheduled generator
maintenance have further compromised the state's unsteady electricity
market.
The California Systems Operator, the agency which oversees the state's
power grid, the California Department of Water Resources and the San
Diego region's largest utility, San Diego Gas and Electric warn that
power demand will far surpass supply as the temperature rises from June
through September 2001.
State power officials have urged counties to prepare for power
curtailments in the form of additional rolling blackouts statewide and
the County has been working diligently to help the San Diego region
escape blackouts and withstand the state's power shortage.
In anticipation of the summer shortage, the Board unanimously approved a
massive conservation effort which includes the elimination of
unnecessary lighting and the installment of cost effective and motion
sensitive lighting. The Board directed the Air Pollution Control
District to locate and permit all back-up generation sources countywide
and approved a project to convert landfill gas into electricity by
installing turbines at the Jamacha Landfill in Rancho San Diego.
The Board also directed the Chief Administrative Officer to investigate
energy independence for the County by exploring ways to become our own
power supplier.
By developing a voluntary demand reduction program for the region's
largest power consumers, the County strives to shield our economy from
the effects of sudden power curtailments. If businesses who use the
most power can stagger their production schedules to shift peak load on
the state's power grid, usage might then be distributed more evenly
throughout the day and the County may perhaps, avert rolling blackouts.
I urge your support.
Sincerely,
DIANNE JACOB
Supervisor, Second District
