Senator Feinstein Urges Nation’s Largest Electricity Generators to Support Temporary Price Controls
May 11, 2001

Washington, DC – U.S. Senator Dianne Feinstein (D-Calif.) is urging the chief executives of the nation’s eight major electricity generators to support temporary price controls as part of an overall solution to the California energy crisis.

Senator Feinstein’s request follows a letter she received this week from the Chairman of Williams, one of the nation’s largest energy producers, indicating his company’s support for temporary price controls. Senators Feinstein and Gordon Smith have legislation pending before the Senate to impose temporary price controls or cost based rates in an effort to stabilize the price of wholesale electricity.

In a letter to the chairmen of Duke, Reliant, Mirant, Calpine, AES, Enron, NRG, and Dynegy, Senator Feinstein wrote: “By endorsing temporary price controls, your company would send a signal to California’s citizens, the State, and the Nation that you favor long-term stability over short-term profits. It would demonstrate a good-faith effort to resolve the crisis and to return the markets to normal.”

“There is no question that the energy crisis is a result of a number of factors, including high growth, poor planning and a deeply-flawed deregulation bill. There is also no question that a few, selected generators and suppliers have benefitted greatly as a result.”

“It is time, however, for all participants to take responsibility for their role in this crisis and to try to make things better. For that reason, I strongly urge you to join Williams in supporting temporary price controls.”

Copies of Senator Feinstein’s letters are available upon request.