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California Wildfire Threatens High-Voltage Wires (Update2)

By Greg Chang

July 27 (Bloomberg) -- A wildfire is threatening high- voltage transmission lines that bring power to California from the Pacific Northwest as electricity demand in the state eases from record levels.

The Lakin Fire, 26 miles northeast of McCloud, California, is burning near three transmission lines that collectively can transport about 4,200 megawatts of electricity, state and federal officials said at a press conference today. One megawatt is enough for 800 U.S. homes.

California frequently relies on power imported from other states to satisfy demand during heat waves and other times of peak electricity consumption. Demand in the state is falling from record levels earlier this week as temperatures decline.

``We are working with the forest service to support them,'' Laverne Kyriss, a spokeswoman with the federal Western Area Power Administration, which owns two of the lines, said in a telephone interview. ``If they need us to shut down the transmission lines, the power dispatchers will work with them.''

The lines may need to be turned off to protect firefighters if they need to operate underneath the wires, Kyriss said. PG&E Corp.'s Pacific Gas & Electric owns the third line.

Contingency Plans

California should have enough electricity available to prevent rolling blackouts should the lines need to be shut down because of the fire, Jim Detmers, a vice president with the California Independent System Operator, which manages most of the state's power network, said at the press conference.

``We do have contingency plans in place,'' Detmers said. ``We hopefully can avoid a system emergency.''

At the worst case, the state would call a stage 1 emergency, which is a public call for energy conservation, or a stage 2 alert, which lets utilities curtail supplies to selected customers who have agreed to have their power reduced during emergencies in exchange for lower rates, he said.

Demand for power in California is expected to peak at 45,684 megawatts today, the system operator said. The state declared electricity emergencies on July 25 and July 24, when demand reached a record 50,270 megawatts.

The fire, which was started by lightning and has consumed about 400 acres, is burning between two of the power lines, Joe Millar, fire chief of the Shasta-Trinity National Forest, said at the press conference.

The fire was burning about one-half a mile (0.8 kilometer) from one of the power wires and three-quarters of a mile from another one, he said this morning. As of 4:30 p.m., the fire had not moved any closer to the power wires, said Lorie O'Donley, a spokeswoman with the California system operator.

Between 400 and 500 firefighters are expected to battle the blaze by day's end, Millar said.

To contact the reporter on this story: Greg Chang in San Francisco at gchang1@bloomberg.net

Last Updated: July 27, 2006 19:44 EDT

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