But the economics of power is changing, and fast. The sharply rising cost and scarcity of electricity in California are heightening interest in renewable power sources such as solar and wind. At the same time, market chaos threatens to undercut that opportunity. Five generators warned last week that, as a result, they will not be able to pay their local property taxes due in April. These companies and similar generators of renewable energy are supposed to receive preferential treatment, as makers of efficient, clean electricity.
Federal rules obligate the private utilities to buy all the power they make.
But in the market upheaval caused by soaring natural gas prices and tight power supplies, renewable energy companies have fallen through the cracks. A state law authorizing the Department of Water Resources to buy electricity on behalf of the utilities and to pay the generators left out the renewable companies. Discussions are ongoing in the Capitol to deal with the problem. Renewable generators collectively supply about 10,000 megawatts of power, but because of the money problems that capacity is shrinking, said Steven Kelly, policy director for Independent Power Producers, a trade group. In other respects, green energy is flourishing.