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"Brace For Blackouts As 75,000 Left Without Power
In California Due To Record 'Demand Response Event'"
by Epic Economist
"Record-breaking temperatures sparked historic power demands in California yesterday, pushing the electrical grid to a breaking point and making rolling blackouts increasingly likely. Thousands of Californians already faced power outages and many more could go powerless this week as authorities warn about an ongoing power grid emergency. At least half a million households were given notice to prepare for the worst-case scenario and remain at risk of experiencing energy supply shortages. The state’s grid operator is urging consumers to turn off lights, curb air conditioners and shut off power-hungry appliances after almost a week of extraordinary stress on electricity infrastructure. Meanwhile, prices are reaching insane levels, compounding pain for families and businesses.
CAISO predicts demand could reach another all-time high this week as homes and businesses turn their thermostats down to escape triple-digit temperatures. On Tuesday, CAISO CEO Elliot Mainzer reiterated the need for power rationing: "We need a reduction in energy use that is two or three times greater than what we've seen so far as this historic heat wave continues to intensify,” he said, adding that more "blackouts are imminent". With blistering temperatures hitting 93% of the state, things are only likely to get worse.
Since Monday, at least 75,000 Californians were left without power, and many more remain at risk of energy supply shortages. The current heat wave began in the last week of August, and it is considered a remarkable event due to its ferocity and duration. The prospect of rolling outages underscores how grids all across the nation have become vulnerable in the face of extreme weather as they transition from fossil fuels to renewable energy. California has aggressively shut down power plants in recent years, which made the state increasingly dependent on solar farms that go powerless late in the day just as electricity demand peaks.
What’s happening in California right now is just a hint of what is going to happen all across the country in the next few months. Across the U.S., energy prices have spiked to the highest level in nearly 15 years, which led roughly 20 million American households to fall behind on paying their utility bills, meaning millions of Americans are potentially facing power shut-offs in the hottest stretch of the summer.
For low-income families – those whose income falls below 200% of the supplemental poverty measure,– nearly 77% of those who can’t pay the bills are working full time, and yet, they cannot keep pace with the rising costs of everything. For businesses, the outlook has been nightmarish, too. The increase in energy prices is driving operational costs to soar and profit margins to shrink. Insolvency experts at Red Flag Alert consultancy estimate that more than 50,000 businesses in the U.S. are at risk of closing down because of the massive increase in energy costs.
“Companies that were previously profitable are now sustaining heavy losses and among those that can survive the rise in energy bills many will have to make job cuts”, the firm, which monitors businesses’ financial health, noted. In some places, they went up seven to eight times higher than the historical norm. For James Green, who runs Flamingos Coffee House and has seen his company's energy bill going from $1,500 to around $10,000, “this is a mass extinction event for many businesses like mine”. "That's more expensive than our wage bill. That's just catastrophic," he said.
In other words, businesses, consumers, and the U.S. economy are reaching a breaking point due to the accelerating energy crisis. It’s safe to say that global events will continue to escalate, making the situation even more difficult in the months ahead. We’re about to confront the stark reality of a collapsing energy system, and it won’t be easy, so enjoy the rest of the summer while you still can, because things are only going to go downhill from here."
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