And, in other utility news - we now have more of our conversation earlier this week with BEL Chairman Andrew Marshalleck.
As we have been reporting, BEL has a capacity problem because growth in electricity demand has far exceeded projections. But whilE that is an issue the problem really is that the power sector has been stagnant. And, as Marshalleck conceded, there's been no increase in capacity for a decade:
Andrew Marshalleck, Chairman - BEL
"We haven't had any new capacity put on the ground for more than ten years. None."
"Now everything is growing in the meantime, demand is growing and new capacity needs to be put on the ground. It's not BEL's responsibility to do that.
"The way it works is that BEL makes a request and the PUC puts out a request for proposals They entertain the proposals, decide who is to do what, and then send them back to BEL to settle the terms of the the power purchase agreement, the PPA."
"So that's how it works, except it hasn't worked. And I know you remember me telling you this: hasn't worked. So that process has failed to put new capacity on the ground for one reason or the other. And we can engage in blame games from the whenever. But the reality is it has not put any additional capacity on the ground."
"So BEL is taking it upon itself to do certain things, make certain investments to put capacity on the ground in the shortest period time period possible"
"The quickest way to get some power in was to upgrade the GT (gas turbine), which was planned in any event at Westlake. And we also bought mobile plant for San Pedro at 21 megawatt plant from GE."
"The reason why we've taken Westlake off line now and not later is because there's a date in May - tow days in May when CFE has already indicated they will need to cut completely. So I'm trying to get that done before that takes place."
"So while you're saying so you feel you're in a race against time?"
"You are to some extent, but the consequences of it is load shedding. And you're at a risk of load shedding in either case, from my perspective. You're saying that we're putting the grid in a precarious position, but we're not. It's already there. I'm trying to manage you out of it."
Jules Vasquez:
"So what is your more sage advice to consumers during this dry period when sources of power are scarce and limited?"
Andrew Marshalleck, Chairman - BEL
"Well it's scarce and limited. So we need to make good use of it. You use it when you have to, and you try to conserve when it's not necessary. And that's the message we've we've sought to put out: to be conscientious in your use of power during that period. But we also know that in a heatwave, certain equipment, your air conditioner, your refrigerators, everything works harder."
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