Federal Judge Keeps Calif. Lights On

S A C R A M E N T O, Calif., Feb. 8 -- Power-starved California enjoyed yet another reprieve after a federal judge ordered one of the state's biggest suppliers to keep the electricity flowing — at least for another day.

U.S. District Judge Frank C. Damrell Jr. said Wednesday histemporary restraining order would remain in effect until he ruleson whether Reliant Energy Services Inc. must continue supplyingpower to California utilities. A decision was expected this afternoon.

The Houston-based company is responsible for about 9 percent ofCalifornia's energy. The state's power managers say stopping theflow could cause a domino effect resulting in even worse blackoutsthan those that darkened parts of California two days last month.

"Not only could it result in rolling blackouts, but completelyuncontrolled blackouts," said Norma Formanek, an attorney for theCalifornia Independent System Operator, which controls most of thestate's power grid.

Reliant officials fear they might never be paid for the powerthey're supplying and accuse the ISO of overstating the potentialimpact.

"The ISO has grossly, grossly exaggerated the nature of theproblem," said Reliant attorney Terry Houlihan.

A Plan for Self-Reliance

Reliant wants the state to stand behind the power purchases,noting that California's two biggest utilities, Southern CaliforniaEdison and Pacific Gas & Electric Co., have said they are $12.7billion in debt and near bankrupt.

Gov. Gray Davis is unwilling to do that because he believesReliant wants to drive up prices by locking the state into purchases on the costly spot power market, Davis spokesman Steve Maviglio said.

As the judge took the arguments under consideration, stateofficials continued to seek a permanent solution to the crisis thatis costing California tens of millions of dollars a day.

The crisis has been blamed on a variety of factors, includinglimited hydroelectric supplies, transmission line troubles andaging power plants taken out of service for maintenance andrepairs. The state has been under a Stage 3 alert — signaling powerreserves at 1.5 percent or less — for a record 24 consecutive days.