Mon Jul 19, 2004
By Nigel Hunt

LOS ANGELES (Reuters) - California's power grid operator reported record demand for electricity on Monday and warned there could be "some tight days ahead" with demand rising boosted by a recovering state economy.

"We've been seeing high demand for energy all summer. What that tells me is that the demand for electricity has and is growing with the return of the economy," Jim Detmers, interim chief operations officer with the California Independent System Operator said.

The California ISO reported demand had set a new record of 44,042 megawatts on Monday, breaking the previous peak of 43,609 MW which was set on July 12, 1999.

The total excludes some areas which are not under the control of the ISO, including Los Angeles and Sacramento, and represents of 75 percent of the state's total demand.

Demand for electricity normally peaks during the summer due to heavy use of air conditioning systems.

The California ISO asked power plant operators to restrict maintenance operations on Monday but did not declare an electrical emergency despite the record demand.

The agency was forced to order rolling blackouts during the state's 2000-2001 power crisis, which was triggered by a supply shortage exacerbated by market manipulation by some suppliers.

Detmers warned that although temperatures around the state were high on Monday they were far below record levels. He said there could be some tight days ahead when balancing supply and demand could be a real challenge.

He said, however, he was not predicting blackouts would be needed this year.

In the valleys around Los Angeles, an area which can sometimes see triple digit temperatures during the summer, highs around the low 90s Fahrenheit were hit on Monday.

"We can easily increase five-to-ten degrees from today's high temperatures, and when that happens electricity use is going to demand even more from the high voltage grid," Detmers said.

California ISO spokesman Gregg Fishman said part of the reason for the increase in demand may be growth in inland communities linked to soaring housing costs in the state.

There has been a significant growth in development in hotter, inland regions with many home buyers unable to afford expensive coastal properties. Inland properties tend to use more electricity due to a greater need for air conditioning.

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