California facing power cuts

Hi-tech California companies are at risk of blackouts

A week of high temperatures has pushed America's most populous state - California - to the brink of unprecedented blackouts.

Power companies say if the heatwave continues, they will be forced to pull the plug on certain key areas in order to keep the entire grid system from failing.

The heat wave and the fires have worsened the situation

Our California correspondent, David Willis, says this situation could plunge Silicon Valley, the backbone of the information technology industry, into darkness - which could affect internet users around the world.

The heatwave has led to record demand for electricity as people turn to fans and air conditioners as a means of staying cool.

Lack of generation capacity

With reserve capacity at an all-time low, thanks largely to the increased use of computers and no new power stations due on stream for several years, the utility companies are hinting that blackouts may prove unavoidable.

Power companies have warned they may pull the plug

President Clinton has ordered federal agencies based in California to cut their energy consumption in an attempt to ease the crisis.

California's Independent System Operator (ISO), which operates most of the grid, was forced to buy in supplies from neighbouring grids to help stabilise the situation.

Some customers, whose contracts allow them to have their service interrupted in times of shortages, did lose their power.

Soaring demand

Some big consumers have been asked to reduce power usage

Power companies say it is the burgeoning hi-tech industries which are largely responsible for soaring demand in power consumption.

One microchip manufacturing plant burns as much power as 50,000 homes, experts say.

Although many new plants are now planned, the prolonged approval and construction process means most will not come on line before 2002.

But some firms are taking matters into their own hands. Oracle has already built its own sub-station and several of its rivals, including Microsoft, are said to be thinking of doing the same.