Old oil contracts irk utilities, PUC in California

Journal Article · Mon Jun 14 04:00:00 EDT 1982 · Energy User News; (United States)

OSTI ID:5232835

Andrews, W

The California Public Utility Commission ordered utilities to suspend their long-term-contract purchases of fuel oil from suppliers to protect ratepayers. The contracts date to the mid-1970s, when users wanted secure supplies for a growing electric power demand. Under these contracts, utilities are paying $43 per barrel compared to $22 for equivalent natural gas, and the difference is passed on to ratepayers as fuel-adjustment increases. A good water supply and prospects of hydropower supplying 40% of California's generating needs will also moderate the need for oil. The PUC, which has no responsibility for supplier problems, can order utilities to stop buying oil from Chevron, the state's principal supplier. Chevron has filed suit against Southern California Edison for breach of contract, and may take similar action against Pacific Gas and Electric. Chevron argues that additional facilities were built in California after the PUC urged long-term supply contracts. (DCK)

• OSTI ID: 5232835
• Journal Information: Energy User News; (United States), Journal Name: Energy User News; (United States) Vol. 7:24; ISSN EUSND
• Country of Publication: United States
• Language: English

Related Subjects

02 PETROLEUM
020700 -- Petroleum-- Economics
Industrial
& Business Aspects
20 FOSSIL-FUELED POWER PLANTS
200108 -- Fossil-Fueled Power Plants-- Fuels-- (1980-)
29 ENERGY PLANNING, POLICY, AND ECONOMY
294002* -- Energy Planning & Policy-- Petroleum
CONTRACTS
ELECTRIC UTILITIES
ENERGY SUPPLIES
FUEL SUPPLIES
INDUSTRY
PETROLEUM INDUSTRY
PUBLIC UTILITIES
REGULATIONS