Get latest breaking forex and currency news here.
July 29
Tuesday 29 July 2014 06:30

Drought adds to 2012 Texas power supply worry

Here you can find all the latest breaking forex and currency news about Drought adds to 2012 Texas power supply worry including currency analysis and forecasts, live foreign exchange rates, central bank interest rates, and currency trading strategies from experienced fx traders and forex platforms.

HOUSTON, Oct 18 (Reuters) - The worst drought in more than 50 years in Texas may limit electric output from power plants next summer, a grid official said on Tuesday.

Texas and Oklahoma, along with parts of Kansas, Louisiana, Arkansas and New Mexico are under extreme or exceptional drought conditions, according to the National Oceanic and Atmospheric Administration.

Only one small, 24-megawatt generating unit is currently curtailed due to a lack of adequate cooling water, said Kent Saathoff, vice president of grid operations at the Electric Reliability Council of Texas (ERCOT) told the board Tuesday.

However, a continuation of the severe drought in Texas could result in as much as 3,000 MW being unavailable next summer, Saathoff said.

The drought has lowered the water level at nearly every reservoir in the state, according to the Texas Water Development Board. A lack of cooling water limits the ability of a power plant to operate at full capacity.

'If the drought continues, the effects will worsen,' Saathoff said.

Texas' hottest summer on record pushed power consumption to record levels, straining the state's electric resources on many days in August.

Grid officials and lawmakers are worried that the drought will compound existing issues that threaten to exhaust the state's power supply: looming environmental regulations that will curtail output from coal-fired power plants and a lack of new power-plant investment.

Saathoff said about 434 megawatts would be unavailable next summer if Texas gets about half its normal rainfall over the winter and spring months.

'If there is no significant rainfall, as much as 3,000 MW could be unavailable by May,' Saathoff said.

A weak La Nina pattern is expected to strengthen over the winter, keeping rainfall in the state to about half of normal, said Jerry Paul, senior meteorologist for Thomson Reuters/Weather Insight.

'The larger the geographic area and the stronger the intensity of the drought, the harder it is to break,' Paul said.

Power plant owners are taking steps to increase access to cooling water, Saathoff said, by increasing pumping capacity, adding pipelines to alternate water sources and securing additional water rights.

Earlier this year, as the lack of rain and hotter-than-normal weather began to deplete the Martin Lake Power plant reservoir in Rusk County, Luminant workers rushed to install two pumps ahead of schedule to add water to the lake to keep the 2,250-MW coal plant running at full output over the summer, said Luminant spokeswoman Ashley Barrie.

Over the past few years, Luminant has added more than 8 miles (13 km) of pipeline to pump water to the Martin Lake reservoir from the Sabine River.

Luminant, the state's largest power generator, has seen no generation limitations from the drought so far, Barrie said.

'Maintaining adequate lake levels is essential for safe, reliable electric generation, and it's even more important during times of high summer electric demand,' she said. 'While we can't speculate on the future impacts of this drought, we remain committed to responsible water management practices across all of our sites.'

(Reporting by Eileen O'Grady; Editing by Marguerita Choy)

() Keywords: UTILITIES/TEXAS DROUGHT

(For help: Click 'Contact Us' in your desk top, click here or call 1-800-738-8377 for Reuters Products and 1-888-463-3383 for Thomson products; For client training: training.americas@thomsonreuters.com ; +1 646-223-5546)

COPYRIGHT

Copyright Thomson Reuters 2011. All rights reserved.

The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.

The article above is about breaking forex and currency news regarding Drought adds to 2012 Texas power supply worry, if you have any question about it. Please contact us by using the link below. Thanks for your patience.

  1. GBP/USD Technical Analysis: Clinging to Support Below 1.70
  2. USD/CHF Technical Analysis: Rally Pauses to Digest Gains
  3. EUR/GBP Technical Analysis: Looking for Direction Cues
  4. USD/CAD Technical Analysis: Still Holding Long Position
  5. AUD/USD Technical Analysis: Locked in Familiar Range
  6. NZD/USD Technical Analysis: Selloff Stalls at Key Trend Line
  7. EUR/JPY Technical Analysis: Preparing to Correct Higher?
  8. GBP/JPY Technical Analysis: Drifting Sideways Above 172.00
  9. USD/JPY Sits at Former Support (101.80-102.00); Lower-High in Place?
  10. US 2Q GDP, FOMC and NFPs Take the Reins on High Event Risk this Week
  11. Euro Breaks Down, and Here are the Key Factors We’re Watching
  12. FX Reversals: Mondays EURUSD Reversal Range
  13. Fed, NFPs Line Up this Week with USD Technical Breakouts
  14. Price & Time: Key Couple of Days for USD/CAD
  15. Fed, NFPs Line Up this Week with USD Technical Breakouts
  16. Gold Prices Inching Lower, SPX 500 Chart Setup Shows Bearish Cues
  17. New Zealand Dollar Down on Eroding RBNZ Rate Hike Outlook
  18. US Dollar Technical Analysis: Rally Extends to 6-Week High
  19. US Dollar Technical Analysis: Rally Extends to 6-Week High
  20. EUR/USD Technical Analysis: Aiming Below 1.34 Threshold
  21. USD/JPY Technical Analysis: Waiting for Fuel Below 102.00
  22. Weekly Trading Forecast: FX Markets Brace for US GDP, NFPs and FOMC Decision
  23. USD/CAD Technical Analysis: Long Position Now in Play
  24. GBP/USD Technical Analysis: Interim Support Met Below 1.70
  25. USD/CHF Technical Analysis: Prices Push to 6-Month High
  26. EUR/GBP Technical Analysis: Seesawing Around 0.79 Mark
  27. USD/CAD Technical Analysis: Long Position Now in Play
  28. AUD/USD Technical Analysis: Waiting for Follow-Through
  29. NZD/USD Technical Analysis: 2014 Uptrend Under Pressure
  30. EUR/JPY Technical Analysis: Upswing Hinted Below 137.00