Is IT To Blame For California's Power Shortage?

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January 19, 2001 (8:13 AM EST)

Is IT To Blame For California's Power Shortage?

As the California power crisis intensifies, the high-tech industry is being assigned a fair portion of responsibility for the increased demand that's taken the state by surprise.

State and power industry officials have pointed out the huge demand high-tech companies place on the state's power supplies and have mentioned the proliferation of high-tech devices as a contributing factor. But how fair is it to single out high-tech in the nation's most populous state?

A spokesman for AeA (formerly known as the American Electronics Association) said the technology sector may be shouldering an unfair portion of the blame. The fundamental issue, is the widespread underestimation of statewide demand, he said.

"Other states have high-tech industry, and they're not having problems," the spokesman said. "One has to deduce that if there weren't all this high-tech development, there'd still be a problem."

It's not as if tech companies aren't doing their part. Intel Corp. (stock: INTC) spokesman Tom Beerman said the chipmaker, which has several thousand employees in the Bay Area, has been working with the state to ensure that it's minimizing its power drain. The company is voluntarily cutting its power usage in its 1 million square feet of offices throughout the region.

"Intel has a responsibility as a consumer of electricity to help preserve resources by reducing its power consumption," Beerman said.

Bob Cohen, senior vice president of the Information Technology Association of America, said he doesn't understand why high-tech companies would be singled out as major power drains, while other industries in California's diverse economy go unmentioned.

"I don't see how you can go about apportioning blame," Cohen said.

He said it also shouldn't be forgotten that technology plays another role in the power crunch.

"A lot of the IT used in intelligent buildings has helped improve the situation," Cohen said. "It provides very powerful tools that allow building managers to more efficiently use power."