Electricity utility Southern California Edison has filed a declaration with the US Federal Energy Regulatory Commission asking for immediate relief from the high wholesale power prices that have characterised the California market since June. The test will come on January 4th when SCE’s power bill is due for payment. If it cannot pay it may have no realistic alternative to filing for bankruptcy and gaining the protection of the court. But generators, who would be forced to absorb the loss, and users may not be so fortunate – if the higher risk for generators reduces power availability and thereby increases the volatility of the supply system.
