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Richardson is headed back to the Forrestal Building to
sign the order... DJ US Richardson Declares Emergency Powers In Calif Dow Jones International News Service -- December 13, 2000 [Return to Headlines] ------------------------------------------------------------------------------ -- (MORE) Dow Jones Newswires 13-12-00 2107GMT DJ DOE To Order Power Delivered To Calif At Set Rates (MORE) Dow Jones Newswires 13-12-00 2108GMT *DJ DOE Action To Stem Calif Rolling Balckouts (MORE) Dow Jones Newswires 13-12-00 2109GMT *DJ Calif Gov Davis,Sen. Feinstein Urge Immediate FERC Moves (MORE) Dow Jones Newswires 13-12-00 2110GMT DJ US DOE/Calif -2: Action Targets `Unfair Profit' WASHINGTON (Dow Jones)--Looking to avert eminent blackouts in California, U.S. Energy Secretary Bill Richardson asserted Wednesday his emergency authority under the Federal Power Act to order power producers to make electricity available to the state. The action came as more than one dozen power producers informed the California Independent System Operator they wouldn't make power available unless they receive payment guarantees. "I can order a power plant to send power where needed," Richardson said at a press conference in Washington. Richardson said he would mandate the price power producers will receive, promising "a fair return." Richardson said, "I won't allow (power producers) to unfairly profit due to today's market situation." (MORE) Dow Jones Newswires 13-12-00 2125GMT DJ US DOE/Calif -3: FERC Pledges `Strong Action Soon' Richardson's announcement came at a press conference in the Washington office of Sen. Dianne Feinstein, D-Calif., following a meeting Feinstein brokered between Richardson, California Gov. Gray Davis, and James Hoecker, chairman of the U.S. Federal Energy Regulatory Commission. The press conference came as the California grid operator was on the brink of failing in its nearly yearlong effort to keep the lights on in the state in the face of chronic power shortages. Davis and Feinstein said they asked the FERC chairman to issue an order establishing a region-wide electricity price cap to stop the hourly export of between 4,000 megawatts to 5,000 MW out of the state's troubled market. They also called for FERC to order power producers to enter into long-term contracts with the state's distribution utilities at reasonable prices. Hoecker pledged that FERC would take "strong action soon" in response to the electricity crisis. "We believe in competitive markets, but they have to behave responsibly and at reasonable prices," he said. The commission is scheduled to meet Friday morning to issue a final order restructuring the state's problem-plagued electricity market. A key issue in the pending order will be the establishment of price caps. Hoecker declined to comment on what actions the commission will take, and on whether the commission would act sooner than Friday. Last Friday, the commission issued an order in response to an emergency petition from California's grid operator lifting a $250 a megawatt-hour hard price cap in California's power markets. Prices soon hit $600/MWh, and have risen above $1,000/MWh since then, spiking at one point to $1,400/MWh. Feinstein and Davis accused power producers of engaging in price gouging at the expense of California consumers and utilities in the state, which can't pass on the high cost due to a state-mandated rate freeze. The escalating prices in the last week have caused a liquidity crunch for Southern California Edison Co. (EIX) and Pacific Gas & Electric Co. (PCG), and have pushed the companies to the brink of bankruptcy. Davis called the crisis affecting California's deregulated power market - the first in the nation - "an incredibly bizarre situation" illustrating "how markets can be manipulated." Davis expressed optimism that Richardson's emergency actions will "stop market abuses" and bring temporary relief. -By Bryan Lee, Dow Jones Newswires; 202-862-6647; bryan.lee@dowjones.com (END) Dow Jones Newswires 13-12-00 __________________________________________________ Do You Yahoo!? Yahoo! Shopping - Thousands of Stores. Millions of Products. http://shopping.yahoo.com/
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