Senator Feinstein Calls Upon Federal Agency to Cap the Price
Energy Generators Can Ask for Power in California
August 7, 2000

Washington, DC – U.S. Senator Dianne Feinstein (D-Calif.) today urged the Federal Energy Regulatory Commission (FERC) to place an emergency order capping the price electricity generators can offer to the California Power Exchange.

In a letter to FERC Chairman James Hoecker, Senator Feinstein wrote: “Deregulation in Southern California has resulted in electricity rates that have doubled for some residents and tripled for some businesses. I believe that FERC must work to ensure that California be allowed to successfully transition into open markets until such time as when true competition exists and California has an ample energy supply. This order would help to stabilize prices, ensure reliability and also answer the question of whether such price caps drive energy out of the state.”

Senator Feinstein has previously called upon President Clinton to ask FERC to investigate the situation in San Diego, to request that FERC extend the authority of the Independent Systems Operator to set an energy price cap and to provide California with emergency assistance under the Low Income Home Energy Assistance Program.

Senator Feinstein has also said she supported the recommendation of the President of the California Public Utility Commission for a full-scale investigation by the California Attorney General of the energy pricing situation in San Diego.