Dive Brief:

• California's utilities expect to have enough power even though an ongoing drought is expected to hurt hydroelectric supplies, which typically provide about 15% of the state's electricity.
• The California Independent System Operator is “concerned,” but doesn't expect blackouts because of the drought.
• Utilities will likely replace the hydro power with more expensive natural gas-fired generation, a move that will put pressure on utility rates.

Dive Insight:

No one expects a repeat of the Western Energy Crisis in 2000. California has built power plants and power lines since then, significantly improving the state's ability to meet its power needs. However, the current drought points to what utilities may be dealing with if average temperatures continue to rise as predicted: less hydro and more air conditioning use during heat waves.