More Blackouts Ahead?

September 5, 2008

The Costa Rican Electricity Institute (ICE) has burned through more than ¢86 billion ($156 million) in diesel fuel for its power plants, which are used to cover demand not met by the nation’s hydroelectric dams and wind power. The trouble is, ICE’s diesel budget for the entire year was only ¢36 billion ($64 million), leaving the state electricity company deep in the hole. However, ICE has now asked the Public Services Regulatory Authority for another electricity rate hike to cover some of the losses. Diesel consumption has increased since low rainfall last year lowered reservoirs, causing a nationwide blackout in April 2007.

 

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