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Received: (qmail 47628 invoked by uid 41); 29 May 2001 22:05:14 -0000
Received: from mtiwmhc24.worldnet.att.net (204.127.131.49) by=20 mx6.quiknet.com with SMTP; 29 May 2001 22:05:14 -0000 Received: from vaio ([12.72.49.51]) by mtiwmhc24.worldnet.att.net = =20 (InterMail vM.4.01.03.16 201-229-121-116-20010115) with SMTP id=20 <20010529220129.COZN12661.mtiwmhc24.worldnet.att.net@vaio<; Tue, 2= 9=20 May 2001 22:01:29 +0000 Message-ID: <000f01c0e88b$1f52eb80$3331480c@vaio< From: "Ken Smith" <ken@kdscommunications.com< To: "Sandra McCubbin" <smccubbi@enron.com<, <Janel.Guerrero@enron.com<,=20 "Scott Govenar" <sgovenar@govadv.com< Subject: Hertzberg Press Conference Date: Tue, 29 May 2001 15:02:42 -0700 Organization: KDS Communications MIME-Version: 1.0 Content-Type: multipart/alternative;=20 boundary=3D"----=3D_NextPart_000_000C_01C0E850.68FFDBC0" X-Priority: 3 X-MSMail-Priority: Normal X-Mailer: Microsoft Outlook Express 5.00.2615.200 X-MimeOLE: Produced By Microsoft MimeOLE V5.00.2615.200 X-Mozilla-Status2: 00000000 Hertzberg Press Conference Announcing New FERC Filing Speaker Hertzberg began by announcing that he had received word that the 9= th=20 Circuit Court of Appeals had rejected the suit filed by Sen. John Burton a= nd=20 the Speaker asking FERC to impose price caps. A story from KFWB radio in L= A=20 said that the 3-0 decision was that the issue "does not warrant interventi= on=20 of this court."=20 The Speaker had received notice just moments before entering the press=20 conference and had no further details, nor had he talked to lead counsel o= n=20 the case. Today=01,s announcement was regarding a request for rehearing of FERC=01,s= April=20 26 order. He said the genesis for the request came from discussions that= =20 occurred during his trip to DC following the order. Both sides of the aisl= e,=20 he said, indicated that there were opportunities to address what he said= =20 were errors in the original order. Speaker pro Tem Fred Keeley said these errors included: The April 26 order finds that wholesale electric rates will not be just an= d=20 reasonable absent commission intervention, but the commission does not=20 demonstrate that the price mitigation it orders will ensure just and=20 reasonable rates; Limiting price mitigation to system emergencies rather than on a 24/7 basi= s; Prices were pegged to the oldest, dirtiest and costliest plants, which=20 continues to allow inappropriately high wholesale prices; There is no relation between costs and pricing; Tying price mitigation to establishing a Regional Transmission Organizatio= n. This is a request for a "different type" of order that they characterized = as=20 "middle ground" with a "market approach" rather than another request for= =20 price caps. He did not elaborate on how the filing takes a market-based=20 approach since it asks for intervention by FERC, but said FERC commissione= rs=20 had indicated that this would be a more "palatable" approach. Hertzberg=20 added that he had met with Republicans in the House dining room and told= =20 them he was not proposing price caps. Keeley said the April 26 order was a "toothless tiger" that didn=01,t impl= ement=20 penalties for violation. The request for rehearing asks for 100% penalties= =20 for any violations. A copy of the filing and press release have been forwarded to Houston and= =20 are also available by contacting Scott Govenar.
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