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California Refineries Want Exemption from Rolling Blackouts

Hoping to prevent price spikes at the pump, the California Public Utilities Commission is allowing oil refineries to apply for protection from the state's rolling blackouts

by Staff
May 21, 2001
1 min to read


Hoping to prevent price spikes at the pump, the California Public Utilities Commission is allowing oil refineries to apply for protection from the state's rolling blackouts.

According to The San Francisco Chronicle, there are a limited number of exemptions available to give out. Refineries will be competing with other businesses, such as skilled-nursing facilities and water agencies.
The Energy Commission notes that there is an economic argument for protecting refineries. There are only 13 refineries in the state, producing cleaner-burning diesel and gasoline required by state law. If they aren't able to produce enough fuel to meet demand, fuel from other parts of the country can't bring up the slack. Price spikes and even shortages could result.
A bill being considered by state lawmakers would put oil refineries at the end of the line of industries that would be affected by the blackouts, but would not exempt them entirely.

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