Media Contacts:-Anne Middleton, UCSD-IR/PS, (858) 534-2777 -Paula Cichocka, UCSD-IR/PS, (858) 534-1465 -Dolores Davies, UCSD-Div. of Social Sciences, (858) 534-5994  

UCSD EXPERTS TO PROVIDE COMMENTARY ON ESCALATING ENERGY CRISIS

As California’s energy crisis escalates, UC San Diego experts are available to comment on related issues: the current situation – its roots and potential scenarios; possible solutions, such as the creation of additional generating capacity or the modernization of already operating power plants; and local ramifications, as compared to other regions of the state.

• Roger Bohn, associate professor of management at UCSD’s Graduate School of International Relations and Pacific Studies (IR/PS). Phone/cell: (619) 379-9619; Phone/w: (858) 534-7630; or rbohn@ucsd.edu. Expert on technology and operations management. Served on the Market Monitoring Committee, a key player in California’s leading-edge deregulation of its electric power industry. Co-author of book, Spot Pricing of Electricity.

• "The problems California is having are aggravated by ‘bugs’ in the design and implementation of deregulation. There is plenty of blame to go around. Until a few months ago, few large and powerful players were able to get most of what they wanted by dominating or bypassing the new organizations set up to implement deregulation. They pushed for rules at California’s Independent System Operator (ISO) that favored them and worsened the situation for consumers. Now with the topic in the spotlight, this has shifted, as shown by the vote on the $250 ISO price cap. But there is a risk of going too far the other direction. Reregulation is not the answer because no rational company would build new power plants in a reregulated world."
• Bohn believes present problems are caused by a failure to build new generators over the past 10 years. And he foresees it lasting until new capacity comes on line, possibly another two summers. Past history suggests that regulatory and political controversy can delay this even further, he adds.

• "The San Diego price problem is not as bad as it appears. What matters to ratepayers is the average price over a year. Including the forthcoming rebates, many customers will see lower average prices in 2000, as compared with 1999. But if new power plants don't get built, this will change, and the costs to consumers will rise significantly. So, it's worth investing in conservation now."

• Steve Erie, associate professor of political science and director of the Urban Studies program at UCSD. Phone/w: (858) 534-3083; Phone/h: (858) 551-0324; or serie@ucsd.edu. Expert on California and regional infrastructure issues and member of the Governor’s Commission on Building for the 21^st Century. He is completing Crown Jewels: Public Enterprise, Growth and Globalization in 20^th Century Los Angeles.

• "To date, nearly all discussion of deregulation’s regional impact has focused on investor-owned utilities, such as SDG&E. Yet municipal utilities, comprising one-quarter of California’s market and potentially shielded from deregulation’s negative effects, offer a promising alternative. Perhaps it is time for San Diego to think about creating a municipal utility district, such as the Los Angeles Department of Water and Power or the Imperial Valley Irrigation District, both of which have maintained ample generating capacity and are able to offer low rates. Citizens of Los Angeles currently have average household monthly utility bills of $45, compared with summertime $105 bills for San Diegans. Additionally, Los Angeles expects to reduce rates in the next few years.
• "California’s inadequate generating capacity is compounded by the fact that the equipment is aging. Nearly two-thirds of the state’s existing stock is more than 30 years old, increasing the risk of greater pollution, brownouts and price spikes. Substantial retrofitting investment is needed or the crisis will worsen."