Fw: FERC & California markets

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Subject: Fw: FERC & California markets

FYI<

----- Original Message -----
From: andy brown
To: smutny@iepa.com ; steven@iepa.com ; kaplan@iepa.com ; dkk ; runwithmee ;
Andy Brown ; Eric Janssen ; cte ; Gregory Maxim ; lmh@eslawfirm.com ;
jdh@eslawfirm.com
Sent: Friday, October 20, 2000 7:53 AM
Subject: FERC & California markets

Article noting that FERC will have special meeting on Nov 1 re California
markets, also Article that Terry Winter is having a press conference today
(Friday) about how the market will be fixed:
FERC To Meet Nov 9 To Propose Remedies To Calif
Pwr Mkt
Friday, October 20, 2000 08:17 AM

LOS ANGELES (Dow Jones)--In an unusual move, the Federal
Energy Regulatory Commission said Thursday it will meet
Nov. 1 to discuss remedies to California's troubled
wholesale power market.
Details of a probe into California's wholesale
electricity market will also be released at the Nov. 1
meeting. As reported, state and federal regulators launched the probe over
the summer, saying the market wasn't workably competitive.
FERC also said it expects to hold a public hearing Nov. 9
to discuss possible solutions to California's power
crisis.
The place and time of both meetings haven't been decided
yet.
Regarding Thursday's announcement, FERC Commissioner Curt
Hebert said "rather than waiting for Nov. 1 to release
the findings of our staff's investigation, I urge the
chairman to release the completed report now...it can only help heal the raw
emotions rampant in the state of California."
FERC said it was rare that it would announce details of
its procedures. The commission said its own rules don't
allow it to normally announce its procedures.
"Because of the need for expeditious action to address
the serious issues affecting California electric power
markets and California consumers...the commission is taking
the unusual step of announcing in advance the procedures it expects to
follow over the coming weeks to move forward in these
proceedings," the FERC order said.
The commission said it will give a three-week deadline
for parties to intervene and to comment on the possible
solutions presented by the commission.
FERC said it anticipates issuing an order by the end of
the year "adopting and directing remedies to promptly
address to the extent possible the identified problems
adversely affecting competitive power markets in California."
If necessary, FERC said it would hold additional meetings
to develop solutions "to other identified problems."
California's wholesale power prices soared this past
summer. Customers of San Diego Gas & Electric Co., a unit
of Sempra Energy Corp. (SRE, news, msgs), paid
market-based rates for power, which resulted in triple-digit utility bills
for its customers. The state's three investor-owned
utilities also racked up billions of dollars in debt due
to high wholesale costs.
SDG&E customers are currently paying a fixed rate for
their power, while customers of the state's other two
utilities are still bound by a rate-freeze.
Generators have been accused of gouging customers and
manipulating the market, although no evidence has been
offered up yet. However, the FERC investigation may
address that.
-By Jason Leopold, Dow Jones Newswires; 323-658-3874;
jason.leopold@dowjones.com
Cal-ISO CEO To Announce Remedy To Lower Power
Cost
Friday, October 20, 2000 08:16 AM
(This article was originally published Thursday)
LOS ANGELES (Dow Jones)--California Independent System
Operator Chairman and Chief Executive Terry Winter will
hold a news conference Friday morning to announce a
possible solution to reduce the state's electricity costs.
An ISO spokesman wouldn't comment on the details of the
news conference.
According to a news release, Winter will speak about
"potential vehicles for containing costs, while
maintaining the ISO's high standards of reliability."
The ISO controls about 75% of California's power grid and
real-time market. As already reported, the grid operator
has come under fire this summer for failing to
immediately reduce a price cap in its real-time market.
Currently, state Sen. Steve Peace, D-Chula Vista, is
drafting legislation to merge the ISO and the state's
Power Exchange.
-By Jason Leopold, Dow Jones Newswires; 323-658-3874;
jason.leopold@dowjones.com
Quote for referenced ticker symbols: EIX, PCG, SRE
, 2000 Dow Jones & Company, Inc. All Rights Reserved.