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Future energy shortages predicted
Study faults U.S. power preparedness
July 28, 1999
BOSTON (CNN) -- This summer's withering heat has forced some power companies to warn they are on the brink of running out of electricity. And just because it hasn't happened near you doesn't mean it won't in the future. A recent study by New York-based Allied Business Intelligence, a technology research firm, predicts that in the next 10 years, a growing strain on energy resources in the United States will lead to power shortages everywhere except Middle America -- with deadly results. "Lives are always lost during heat waves. It's the weakest, the sick, elderly," says ABI analyst Michael Kujawa. "Air conditioners will go off in some critical situations ... and the numbers will go up." He expects blackouts and brownouts that "will last for days." For one thing, blame the booming economy. With new, bigger private homes going up and half a million new commercial buildings built every year, energy demand is outpacing supply.
And what excess energy may exist in one part of the country is often difficult to move to another. By 2007, according to ABI, up to 150 gigawatts (150 billion watts) of new energy capacity will be needed in the United States. Plans now call for meeting only half that demand, a situation critics call the result of dangerous short-term thinking. In the 23 states where electric utilities have been deregulated, most energy is now supplied by companies that broker their services for prices that rise and fall with demand. Why invest in a new power plant, the business person might ask, when more energy suppliers means more competition, driving prices down. But it's an argument that doesn't hold up, say officials who oversee New England's energy market. "We have 30,000 megawatts of new capacity that's either being built, permitted or under construction," says Stephen Allen of Independent System Operators. "That's a record amount." "It's all clean, natural gas power plants," Allen told CNN. "The future has never looked better." Still, analysts say New England's power grid nearly crashed during a heat wave last month. And there's plenty of summer left. Correspondent Bill Delaney contributed to this report. RELATED STORIES: Another scorcher RELATED SITES: Allied Business Intelligence California Energy Shortage Contingency Plan -- Introduction
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